Envoy Textiles Q1 profit jumps 40% to Tk53cr on export growth, lower financing costs

Revenue rises 10.5% to Tk519 crore as financial expenses fall 17.6% following a shift from high-cost local borrowing to cheaper ADB financing.

Envoy Textiles Limited posted a 40% year-on-year increase in net profit to Tk53.13 crore in the first quarter of the fiscal year 2026-27, driven by higher export revenue and lower financing costs.

The denim manufacturer reported earnings per share (EPS) of Tk3.17 for July-September 2026, up from Tk2.26 in the same period of the previous fiscal year, according to its unaudited financial statements.

The company’s revenue rose 10.51% to Tk519.21 crore during the quarter, compared with Tk469.82 crore a year earlier.

The growth was primarily driven by a Tk49.38 crore increase in net export sales, which offset a Tk15.94 crore decline in yarn export sales, according to the company.

Gross profit increased to Tk102.92 crore from Tk91.26 crore in the corresponding quarter of FY26.

The improvement came despite changes in production costs, with the company reporting a slight decline in the cost of goods sold relative to sales, supported by better management of factory overheads.

Meanwhile, total financial expenses fell 17.63% to Tk29.15 crore from Tk35.39 crore a year earlier, reducing the company’s financing burden.

Management attributed the decline mainly to replacing high-cost local borrowings with relatively lower-cost financing from the Asian Development Bank (ADB).

The company’s operating cash flow also improved during the quarter. Net operating cash flow per share (NOCFPS) rose to Tk5.19 from Tk3.67 in the same period last year, supported by favourable changes in trade payables and materials in transit.

Net asset value per share (NAVPS) stood at Tk63.49 as of 30 September 2026, up from Tk60.33 at the end of June 2026.

Source: The Business Standard