Miracle Industries posts deeper Q2 loss despite higher sales

Miracle Industries, a plastic packaging manufacturer, posted a deeper loss in the second quarter (October-December) of FY26, amounting to Tk 21.48 million, compared with a loss of Tk 6.34 million in the same period of the previous year.

The company incurred higher losses despite increased sales volume after securing a public-sector client.

According to the company, lower selling prices, higher financial expenses, and outdated machinery contributed to the losses.

As per a disclosure on Monday, the company's loss per share rose to Tk 0.61 in the October-December quarter of FY26 from Tk 0.18 per share in the same quarter a year earlier.

For the first six months of FY26, the loss per share increased to Tk 1.38 from Tk 0.99 in the corresponding period of the previous year.

Md Omar Faruk, company secretary of Miracle Industries, told The FE, "I believe some price-dumping practices are going on in the industry. That's why, despite an increase in quantity, we have failed to achieve any profit. Besides, we have a huge amount of debt, which has led to high interest expenses and is preventing us from making any profit."

"We need huge investment to increase our productivity, need logical prices in the market, and we need to lower our debt to reach profitability," he said.

Miracle Industries was previously owned by Lutfozzaman Babar and his family and was later sold to new owners not long before the change of the Hasina-led regime in 2023.

At one time, the company was a fixed supplier to government entities. It later lost that position, but regained Bangladesh Chemical Industries Corporation (BCIC) as a fixed customer last year.

According to the contract, BCIC is set to purchase 50 per cent of its total requirement of woven polypropylene and polyethylene bags from publicly listed Miracle Industries Ltd.

The development was expected to boost the company's business, but that has not materialised so far.

According to the company, "Due to a further fall in selling prices and a rise in interest expenses, the company continued to suffer losses."

However, cash flow showed improvement, as operating cash flow per share stood at Tk 0.13 in the negative for July-December 2025, compared with Tk 1.49 in the negative for July-December 2024.

The company attributed the improvement to better cash management.

"MIL turned around operating cash flows through improved cash flow management," it said.

Meanwhile, the company's share price rose 2.05 per cent to Tk 30 per share on Monday on the Dhaka Stock Exchange (DSE).

In June 2025, the share price stood at Tk 22.8 and later climbed to Tk 37.5 by October that year after the company regained the government contract. However, the company has yet to see a positive financial impact from the contract.

Market experts said the company's losses stem from low-margin contracts, cash flow stress due to delayed payments, operational inefficiencies following the ownership change, and weaker competitiveness in tenders.

farhan.fardaus@gmail.com