Square Pharma Unveils Record 130% Dividend Alongside Major Capacity Expansion Plan

Square Pharmaceuticals has put forward a 130 percent cash dividend for the year ended 30 June 2026, marking the largest distribution the company has ever proposed to its shareholders. The recommendation, settled at a board meeting earlier this week, would deliver Tk 13 in cash for each share of Tk 10 face value. Investors will vote on the proposal at the annual general meeting set for 15 December, which will be held virtually, while 16 November has been designated as the record date that determines who is entitled to the payout.

The dividend rests on a solid set of full-year figures. Consolidated profit after tax reached approximately Tk 2,770 crore, representing growth of roughly 15 to 16 percent compared with the previous financial year. Total revenue advanced by about 13 percent to around Tk 8,606 crore. Consolidated earnings per share improved to Tk 31.24 from Tk 27.04, and net asset value per share rose to Tk 178.99 from Tk 157.88. Net operating cash flow per share, however, slipped slightly to Tk 18.65, reflecting continued investment in operations even as the company returned a larger share of earnings to owners.

In parallel with the dividend decision, the board approved capital expenditure of about Tk 725 crore. The allocation is intended for balancing, modernisation, rehabilitation and expansion work, together with purchases of capital machinery and land. A portion of the funds is expected to support new or upgraded facilities focused on oncology medicines, biologics, hormones and steroids. These specialised product categories are viewed as longer-term growth areas that could broaden the company's portfolio beyond its established strengths in general formulations.

Square Pharmaceuticals occupies a distinctive position in Bangladesh's pharmaceutical industry. As the country's largest drug maker by domestic sales, it supplies a wide range of products through an extensive distribution network that reaches most parts of the country. The firm was established in 1958 and has maintained a track record of relatively consistent performance. It currently exports to more than forty countries, and management has indicated that overseas sales can still expand by better utilising existing manufacturing capacity rather than relying solely on new plants. Export earnings formed a modest but growing part of overall revenue in the latest year.

The share price has remained comparatively steady over the past twelve months, trading recently near Tk 219. Market participants appear to have treated the company as a relatively predictable large-cap holding rather than a high-volatility growth stock. The latest dividend proposal continues a sequence of rising cash payouts that has seen earlier years deliver 120 percent, 110 percent and 105 percent. The combination of a record distribution and a sizeable investment programme suggests the board is seeking to balance immediate returns to shareholders with longer-term capacity building.

For existing shareholders the key near-term date is the mid-November record date. If the annual general meeting approves the recommendation, the 130 percent payout would become the highest cash dividend in the company's history. Looking further ahead, attention will turn to how efficiently the Tk 725 crore expansion funds are deployed and whether the planned specialised facilities begin to contribute meaningfully to revenue and profit in subsequent years. The strength of the latest results provides a solid base, yet sustained growth will depend on both domestic demand and the company's ability to lift export volumes in a competitive global market.

With the annual meeting still several weeks away, the immediate market focus remains on the confirmation of eligibility for the proposed dividend and any further operational updates the company may release before December. The scale of both the payout and the accompanying investment plan positions Square Pharmaceuticals as one of the more active large pharmaceutical companies in the country in terms of capital allocation this year.