Global Heavy Chemicals Reports Tk6.10cr Loss in Q1 FY26 Amid Sales Decline
Global Heavy Chemicals Limited incurred a Tk6.10 crore loss in Q1 FY26, largely due to a sharp decline in sales from Tk17.13 crore to Tk2.19 crore and rising fixed expenses. While still a loss, it narrowed compared to Tk7.92 crore in Q1 FY25. Despite the net loss, cash flow from operations improved significantly to Tk6 crore, aided by effective working capital management. The company did not recommend dividends for FY25 due to sustained losses.
Global Heavy Chemicals Limited recorded a net loss of Tk6.10 crore in the first quarter of fiscal year 2026 (July–September 2025). This financial setback is primarily attributed to a drastic reduction in net sales, which plummeted to Tk2.19 crore from Tk17.13 crore in the corresponding period of FY25. Additionally, the company faced increased fixed costs and financial expenses, which collectively rose to approximately Tk3 crore, contributing further to the loss.Despite the current quarter's loss, there was a marginal improvement compared to the same period in the previous fiscal year, when the company reported a larger loss of Tk7.92 crore in Q1 FY25, indicating a narrowing of the net loss. Earnings per share (EPS) remained negative due to the continued losses.The company's net asset value per share slightly decreased to Tk71.05 in Q1 FY26 from Tk71.89 in Q1 FY25, mainly due to the net loss and a reduction in retained earnings, while core capital structures like share capital and premium remained unchanged.Notably, the net operating cash flow per share improved to Tk0.85 from Tk0.61 year-on-year, and cash flow from operations significantly increased to Tk6 crore from Tk4 crore. This positive development is credited to effective working capital management, including lower receivables and inventories coupled with higher payables, demonstrating operational efficiency despite the revenue challenges. Due to consistent losses, including a Tk15.76 crore loss in the last fiscal year (FY25), the company did not recommend any dividends for shareholders for FY25.
