Ifad Autos PLC returned to profit in FY2025-26 after three consecutive years of losses, earning an estimated Tk12.07 crore as stronger corporate demand drove a recovery in commercial vehicle sales and revenue.
The assembler and distributor of Ashok Leyland buses and trucks reported earnings per share (EPS) of Tk0.45 for the year ended 30 June 2026, reversing a loss per share of Tk0.27 a year earlier, according to audited financial statements approved by its board last week.
Based on its 26.83 crore outstanding shares, the latest EPS translates into an estimated annual net profit of Tk12.07 crore.
The turnaround follows a difficult three-year stretch during which Ifad Autos accumulated losses of Tk38.16 crore. It lost Tk15.38 crore in FY2022-23, Tk16.46 crore in FY2023-24 and Tk7.32 crore in FY2024-25.
Its last profitable year was FY2021-22, when earnings reached Tk41.40 crore.
Sharp depreciation of the taka contributed to foreign exchange losses in the first two loss-making years, increasing financial pressure on the import-dependent business.
For vehicle assemblers and distributors, a weaker taka raises the local-currency cost of imported vehicles, components and foreign-currency liabilities, making exchange-rate movements an important factor in profitability.
The latest recovery was driven by sales. Ifad Autos sold 3,958 vehicles in FY2025-26, compared with 3,637 a year earlier, an increase of 8.8 per cent.
The company attributed the growth to stronger corporate demand for commercial vehicles.
Revenue climbed Tk166.31 crore, or 18.64 per cent, to approximately Tk1,058.5 crore.
Sales revenue grew more than twice as fast as vehicle volumes, indicating that average revenue per vehicle increased.
Yet the rebound has not restored the profitability Ifad Autos enjoyed before its three-year slump.
The estimated Tk12.07 crore profit represents a net margin of just 1.1 per cent, meaning the company retained little more than Tk1 in profit from every Tk100 in sales.
That leaves earnings relatively sensitive to changes in vehicle prices, import costs and foreign exchange rates.
Cash generation, however, showed a stronger recovery.
Net operating cash flow per share jumped 131.6 per cent to Tk5.65 from Tk2.44, meaning the company generated substantially more cash from its regular business activities than in the previous year.
Ifad Autos attributed the improvement to higher customer collections relative to increased payments to suppliers for imported completely built-up and completely knocked-down vehicles and components.
Completely built-up vehicles arrive ready for sale, while completely knocked-down vehicles are imported as parts or kits for local assembly.
The increase in cash collections is significant for a business that must finance vehicle imports and inventory before recovering money from customers.
Operating cash flow per share also remained well above EPS, indicating that cash generation was stronger than reported accounting earnings during the year.
Net asset value per share, representing the company’s assets after deducting liabilities, edged up about 1 per cent to Tk35.92 from Tk35.56.
Following the return to profit, the board recommended a 3 per cent cash dividend for all shareholders, compared with 2 per cent in FY2024-25.
The company had declared a 1 per cent cash dividend and a 1 per cent stock dividend for FY2023-24, while the dividend for FY202-23 was 10 per cent cash.
Ifad Autos has scheduled its annual general meeting for 27 December, with the time and venue to be announced later. The record date for determining dividend eligibility is 22 November.
Ifad Autos shares closed at Tk21.60 on the Dhaka Stock Exchange on Thursday.
