Despite registering strong revenue growth, Square Pharmaceuticals saw a marginal decline in profit in the January–March quarter this year, weighed down by higher operating expenses and a rising tax burden.
The country’s largest drug manufacturer posted an 8 per cent year-on-year increase in revenue in the quarter, while profit edged down 1.32 per cent to Tk 5.97 billion in Q3 of FY26 compared to the same period last year.
Consequently, consolidated earnings per share (EPS) slipped to Tk 6.73 in the quarter ending March, from Tk 6.83 in the same period a year earlier, according to the company’s unaudited financial statements published on Wednesday.
Financial disclosures show that operating expenses rose 12 per cent year-on-year to Tk 5.05 billion during the quarter. At the same time, tax expenses surged sharply—particularly deferred tax—which climbed to Tk 260 million from just Tk 22 million a year earlier, putting pressure on the bottom line.
However, the drug manufacturer managed to significantly reduce its finance costs by 57 per cent through partial repayment of long-term loans. Additionally, interest income increased by 19 per cent as the firm parked surplus cash in government securities and bank deposits, benefiting from rising interest rates.
Despite the quarterly profit decline, Square Pharmaceuticals delivered a solid performance over the nine months through March this year. Profit rose 10 per cent year-on-year to Tk 20.64 billion, while revenue grew 12.5 per cent to Tk 65.08 billion during the period.
Market analysts remain optimistic about the company’s fundamentals.
Akramul Alam, head of research at Royal Capital, noted that the company continues to benefit from strong consumer trust and consistent demand for its products.
He highlighted Square Pharma’s competitive edge in producing high-quality generic medicines at relatively low costs, which has strengthened its position both domestically and internationally. Increased focus on research and development has also supported its long-term growth trajectory.
According to Alam, the company has demonstrated strong execution capability, innovation, and proactive management strategies, allowing it to navigate economic challenges effectively.
Square Pharmaceuticals is the second-largest firm in terms of market capitalisation, at around Tk 189 billion as of Wednesday.
The stock closed at Tk 213.7 on Wednesday on the Dhaka Stock Exchange, marking a 0.28 per cent gain over the previous session.
Record annual performance
Square Pharmaceuticals registered a 14.5 per cent year-on-year growth in profit to Tk 23.97 billion in FY25, the highest-ever annual profit, driven by higher sales and substantial earnings from subsidiaries.
The company’s expanded distribution network also boosted sales by 9 per cent to Tk 76.30 billion in FY25.
Based on the record profit, the company also declared its highest-ever cash dividend—120 per cent—for the year.
The leading drug maker in Bangladesh has held the leadership position in the domestic market since 1985 and is now on its way to becoming an important global player, the company claimed on its website.
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