Square’s board approved the FY26 accounts and dividend at a meeting on 26 October 2026. For a market that has spent much of the past few years worrying about weak banks and patchy earnings, the country’s largest drugmaker is a reminder of what steady, cash-generating growth looks like.

01The dividend at a glance

02A dividend that has risen every year

The 130% payout continues a clear upward line. Square paid 60% in FY21, 100% in FY22, 105% in FY23, 110% in FY24 and 120% in FY25. Over five years, the cash a shareholder receives for each share has more than doubled.

Even at this record level, the payout is conservative. Tk 13 is about 42% of the Tk 31.24 EPS, so Square keeps well over half of its profit to reinvest — and still pays out roughly Tk 1,150 crore in cash to shareholders.

03Five years of record profits

Every year since FY22 Square has set a new profit record. Consolidated net profit has grown from Tk 1,817 crore to Tk 2,770 crore — an average of about 11% a year.

Profit grew faster than sales, and each taka of revenue now delivers about 32 paisa of net profit — an unusually high margin for a manufacturer. The Daily Star, reporting the same results, put profit growth at 18%; The Business Standard’s consolidated figures show 16%.

04Why Square keeps growing

Demand is on Square’s side. Rising health awareness, a growing population and more people living with chronic conditions such as diabetes and heart disease are lifting medicine sales year after year. Square has also been adding to its range — it launched 10 new products in a single quarter last year — and pushing its distribution into remote areas.

Investing for the next decade

Alongside the results, the board approved Tk 725 crore of new investment in plant modernisation and expansion, capital machinery and land. Since 2020, Square has put about Tk 2,500 crore into land, machinery and factories. The aim is more capacity and a wider range, including biological products and specialised medicines for cancer and chronic diseases — higher-value areas that most local competitors cannot yet make.

05A fortress balance sheet

Square is close to debt-free. At the end of FY25 it held about Tk 5,540 crore in cash — roughly 38% of its total assets — against interest-bearing debt of only about Tk 83 crore. In FY26 it repaid part of its long-term loans, cutting finance costs by more than half, while interest income on its surplus cash rose.

06What the market is paying for it

Square’s shares closed at Tk 218.80 on 26 October 2026, the day of the announcement. They have traded in a narrow Tk 198–236 range over the past year — stable, but hardly priced like a company setting a profit record every year.

A P/E of about 7 is low for a market leader growing earnings in double digits, and well below the pharmaceutical sector median, which BRAC EPL’s research puts above 20x. Part of the gap reflects Square’s large pile of idle cash, which earns modest returns. Still, a near-6% cash yield from a debt-free, growing business stands out in the DSE.

07The risks to watch

08The takeaway for investors

Square is not an exciting stock. Its share price barely moves. But underneath, the business has grown its profit every year, raised its dividend every year, carries almost no debt and keeps investing for the future. That is the kind of company long-term investors build portfolios around.

• For income investors: a rising cash dividend, now about 5.9% at the current price, paid by a company that keeps most of its profit for growth.
• For long-term investors: a market leader at around 7x earnings, compounding its book value by double digits a year.
• Before you buy: check the record date, consider the ex-dividend price adjustment and remember that dividends are taxed. No single stock should dominate a portfolio.