Power Grid returns to profit after three years of losses

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State-owned Power Grid Bangladesh returned to profitability in FY26, posting a net profit of Tk 4.58 billion after recording losses for three consecutive years. The turnaround was mainly driven by foreign-exchange gains, higher investment income and lower finance costs, rather than stronger operating performance.

The company recorded a foreign-exchange gain of Tk 3.33 billion in FY26, compared with a loss of Tk 9.34 billion in the previous year. Revenue increased 6.8 per cent year-on-year to Tk 33.30 billion, while finance income rose 80 per cent to Tk 3.19 billion.

Finance expenses fell sharply to Tk 5.10 billion from Tk 16.67 billion a year earlier. However, operating profit declined more than 25 per cent to Tk 6.39 billion as transmission expenses increased 19 per cent, highlighting continued weaknesses in its core operations.

After deducting Tk 1.05 billion in preference-share dividends, profit attributable to ordinary shareholders stood at Tk 3.53 billion. Earnings per share (EPS) improved to Tk 3.86 from a loss of Tk 5.47 in FY25. The company also declared a 5 per cent cash dividend, or Tk 0.50 per share, after two years without dividends.

Despite the recovery, accumulated losses remained at Tk 18.04 billion at the end of June 2026. The company's total assets rose to Tk 910.4 billion, while liabilities stood at Tk 775.8 billion, including term loans of around Tk 704.8 billion.

Power Grid remains exposed to foreign-exchange risks because much of its borrowing from international development partners and lenders is denominated in foreign currencies. Changes in the taka's value can significantly affect its debt burden and financial results.

The company's financial recovery also faced fresh challenges in the first quarter of FY27. Despite a 30 per cent increase in revenue to Tk 12.08 billion during July-September, profit fell 67 per cent year-on-year to Tk 1.21 billion as finance expenses surged to Tk 4.69 billion from Tk 58.6 million.

Following the disclosure, the company's shares fell 5.47 per cent to Tk 36.30 on the Dhaka Stock Exchange on Monday.

Meanwhile, auditors issued a qualified opinion on the FY26 financial statements, questioning the accounting treatment of Tk 18.57 billion in accumulated unrealised foreign-exchange losses. They also raised concerns over deferred-tax calculations, disputed tax provisions, repeated earnings revisions and the valuation of assets and liabilities.

Power Grid Bangladesh, a subsidiary of the Bangladesh Power Development Board, operates and maintains the country's national electricity transmission network. It has been listed on the stock exchanges since 2006.