Square Pharmaceuticals PLC, one of the leading drug makers in Bangladesh and the flagship company of the Square Group, has published its un-audited financial statements for the first quarter (Q1) of FY 2026-27. Together with its subsidiaries, the company earned a net profit of BDT 7,775.9 million, up 5.0% from BDT 7,404.6 million in the same quarter last year. Earnings per share rose to BDT 8.77 from BDT 8.35.
Single-Digit Revenue Growth
Consolidated net revenue grew by 3.9% to BDT 22,439.0 million from BDT 21,586.6 million. This is a sharp slowdown from the 21.6% growth of Q1 FY 2025-26, but still the highest first-quarter revenue in the period. Over the last three years, revenue has grown at a compound annual rate of 8.0%.
The growth came entirely from the parent company. Square Pharmaceuticals PLC, which brings in 77.2% of consolidated revenue, grew its net revenue 5.9% to BDT 17,321.6 million. Its increase of BDT 957.4 million was larger than the group’s entire revenue gain. Local sales rose 4.7% to BDT 16,449.4 million, while exports jumped 34.0% to BDT 872.2 million.
Square Lifesciences Ltd., the second-largest concern with 22.1% of revenue, went the other way. Its net revenue fell 2.1% to BDT 4,961.2 million, as local sales dropped 2.4% to BDT 4,937.7 million. This comes after 40.7% growth a year earlier. Its exports tripled to BDT 23.5 million but are still very small. Square Pharmaceuticals Kenya EPZ Ltd., which sells only in Kenya, was almost flat at BDT 156.3 million, up 0.5%.
Concern (BDT million) | Q1 26-27 | Q1 25-26 | Growth | Share of revenue |
|---|---|---|---|---|
Square Pharmaceuticals PLC | 17,321.6 | 16,364.2 | 5.9% | 77.2% |
Local | 16,449.4 | 15,713.1 | 4.7% | 73.3% |
Export | 872.2 | 651.1 | 34.0% | 3.9% |
Square Lifesciences Ltd. | 4,961.2 | 5,067.0 | -2.1% | 22.1% |
Local | 4,937.7 | 5,059.3 | -2.4% | 22.0% |
Export | 23.5 | 7.7 | 204.7% | 0.1% |
Square Pharmaceuticals Kenya EPZ (Local) | 156.3 | 155.4 | 0.5% | 0.7% |
Source: Q1 quarterly reports.
Across the group, local sales grew just 2.9% to BDT 21,543.4 million, while exports grew 36.0% to BDT 895.7 million. Exports now make up 4.0% of revenue, up from 3.1%, and they brought in BDT 236.9 million, or 27.8% of the total revenue increase.
Gross Margin Climbs to a Four-Year High
Gross profit rose 8.4% to BDT 12,184.6 million, more than twice the pace of revenue, because cost of goods sold fell 0.9% to BDT 10,254.5 million. Gross margin of the company grew to 54.3% from 52.1%.
Export Incentives and Lower Finance Cost Support Profit
Profit from operations rose 8.2% to BDT 7,598.2 million, and the operating margin improved to 33.9% from 32.5%. However, operating expenses took a large bite out of the BDT 941.1 million gain in gross profit. They grew 11.0% to BDT 4,720.2 million, nearly three times the pace of revenue, taking them to 21.0% of revenue from 19.7%. Selling and distribution expenses, 86.9% of the total, rose 11.7% to BDT 4,101.1 million, and administrative expenses rose 11.0% to BDT 607.2 million.
Expense driver (BDT million) | Q1 26-27 | Q1 25-26 | Growth | % of operating expenses |
|---|---|---|---|---|
Field staff salaries, allowances, TA & DA | 1,223.0 | 1,103.1 | 10.9% | 25.9% |
Marketing expenses | 761.1 | 683.3 | 11.4% | 16.1% |
Salaries & allowances (selling + admin) | 739.7 | 670.0 | 10.4% | 15.7% |
Travelling & conveyance (selling + admin) | 172.8 | 131.8 | 31.1% | 3.7% |
Free samples | 144.0 | 113.1 | 27.3% | 3.1% |
Total operating expenses | 4,720.2 | 4,250.9 | 11.0% | 100.0% |
Source: Q1 quarterly reports.
These five items added BDT 339.3 million, or 72% of the total rise in operating expenses. Finance cost fell 62.4% to BDT 11.9 million, as interest at Square Lifesciences and the Kenya unit came down. Other operating income rose to BDT 133.8 million from BDT 30.5 million, mainly because cash incentives received against exports jumped to BDT 127.1 million from BDT 20.9 million.
Income from investments fell 2.5% to BDT 1,694.2 million, as interest from deposits dropped 14.7%, partly offset by a 65.3% rise in income from government securities. Tax expense grew by 9.2% to BDT 1,678.5 million. Profit from associates added BDT 602.2 million, almost unchanged from last year.
Net profit came in at BDT 7,775.9 million, up 5.0%, and the net margin improved to 34.7% from 34.3%.
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