Submarine Cables’ profit jumps 37pc in FY26 as bandwidth demand grows

Bangladesh Submarine Cables (BSC) registered 37 per cent year-on-year growth in profit, to Tk 2.83 billion, in FY26, backed by revenue growth.

According to company officials, revenue grew 25 per cent to Tk 4.95 billion in FY26 from the year before, mainly due to increasing demand for the company’s core bandwidth services.

A government policy shift limited alternative ways for telecom operators to obtain international bandwidth.

In February 2025, the Bangladesh Telecommunication Regulatory Commission (BTRC) changed the International Internet Gateway (IIG) Licensing Guidelines, restricting terrestrial bandwidth imports.

That created greater demand for services provided by the Submarine Cables, as telecom operators and internet service providers needed more bandwidth to transmit data between Bangladesh and the rest of the world.

Subsequently, internet usage, data consumption and international connectivity requirements increased significantly through the Submarine Cables.

According to the company’s financial statements, BSC’s domestic bandwidth utilisation was 3,563 Gbps in FY25, excluding 863 Gbps of IPLC (International Private Leased Circuit) exports.

Later, in May 2026, the company reported that domestic bandwidth usage had risen to approximately 4,100 Gbps. The increased utilisation of the company’s bandwidth subsequently fuelled the revenue growth in FY26.

Talking to the FE, the company’s Chief Financial Officer (CFO) Shukanta Kumar Debnath said a significant rise in bandwidth sales and operating efficiency had played a role in the rise in profit in FY26.

There was no significant variation in the company’s operating expenses, he added.

The state-run company also reported a 12.53 per cent year-on-year increase in net asset value (NAV) per share, to Tk 102.40, in FY26, meaning the value of shareholders’ assets improved over the year.

The Submarine Cables also recorded 9.45 per cent growth in net operating cash flow per share (NOCFPS), to Tk 15.05, in FY26 from the previous year.

Meanwhile, the company’s board of directors recommended a 47.50 per cent cash dividend for FY26, an increase from the 40 per cent cash dividend paid for the previous year. The cash dividends paid for the previous three years were also above 40 per cent.

The Submarine Cables maintained its profit growth for the last two consecutive years. It reported a profit of Tk 1.83 billion in FY24, which rose to Tk 2.83 billion in FY26.

Meanwhile, the company’s stock price closed at Tk 148.90 per share on Saturday, a rise of 1.43 per cent from the previous session on the Dhaka Stock Exchange (DSE).

Previously, the stock peaked at Tk 167.60 on July 15, up from Tk 137 on April 20 this year. Later, the stock experienced volatility and slid to Tk 148.90 by Saturday.

Source: The Business Standard