GPH Ispat’s Q3 losses widen 14-fold as weak demand hits sales
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GPH Ispat saw its losses widen sharply in the third quarter ended March 2026, as sluggish demand and a steep fall in sales volume weighed heavily on the company’s earnings.
The Chittagong-based steel maker reported a quarterly loss of Tk 152 million for January-March 2026, up nearly 14 times from a loss of Tk 10.71 million recorded in the same quarter a year earlier.
Its loss per share rose to Tk 0.31 in the March quarter from Tk 0.02 in the corresponding quarter of the previous year, according to the company’s unaudited financial statements published on Sunday.
The company attributed the weak performance mainly to a significant decline in sales volume, which reduced revenue generation and negatively affected overall profitability.
Quarterly sales dropped 41 per cent year-on-year to Tk 9.59 billion during the January-March period, reflecting continued weakness in the country’s steel demand amid a slowdown in construction and industrial activities.
Market analysts said the steel industry has been grappling with multiple headwinds, including subdued private sector investment, high borrowing costs, elevated energy prices and weaker construction activities, all of which have dampened demand for steel products.
The company also slipped into losses in the first nine months of the current financial year through March 2026. It posted a cumulative loss of Tk 106 million during the July 2025-March 2026 period, compared with a profit of Tk 303 million in the corresponding period of the previous financial year.
Its nine-month sales declined 27 per cent year-on-year to Tk 33.20 billion.
Despite the deterioration in profitability, the company maintained relatively stable operating cash flows. Net operating cash flow per share (NOCFPS) stood at Tk 6.53 for the nine months, slightly down from Tk 6.70 in the same period a year earlier.
Meanwhile, net asset value (NAV) per share edged down to Tk 51.44 as of March 2026 from Tk 51.72 in June 2025.
Founded in 2006, GPH Ispat is one of the country’s leading steel producers and has invested heavily in advanced steel manufacturing facilities in recent years. However, the company’s earnings have remained under pressure due to volatile raw material prices, foreign exchange constraints and slower-than-expected industrial demand.