Sharp Industries Plunges Into Loss Amid Severe Energy Crisis in Bangladesh

Sharp Industries PLC is facing a severe operational and financial crisis in Bangladesh due to persistent gas and electricity shortages, which have severely disrupted its manufacturing activities. The company has been unable to fully utilize its production capacity because of long-standing disruptions in power supplies over the past year. According to company representative Sudip Banik, the enterprise has been forced to endure rolling blackouts where electricity is absent for approximately 12 hours every single day. Even during extended periods without power, Sharp Industries must continuously bear fixed expenses, including mandatory wages for its workforce.

The ongoing energy constraints have severely restricted output across the firm's facilities. Sharp Industries operates two dedicated production units equipped with a total of approximately 120,000 spindles. While the company possesses a daily yarn production capacity of roughly 70 tonnes, actual current production has plummeted to only about 42 tonnes per day. Consequently, the enterprise is currently operating at roughly 60 percent of its total daily production capacity. In an effort to mitigate these severe energy challenges, the company utilizes a 6 megawatt solar power system, from which an average of roughly 3 megawatts of electricity is supplied directly to the national grid.

The compounding impact of the energy crisis has deeply damaged the financial standing of Sharp Industries PLC during the 2025-26 fiscal year. Financial reports covering the first nine months of the 2025-26 fiscal year reveal that the company generated revenue of approximately 257 billion taka, yet suffered a staggering net loss of approximately 65 billion taka. This downturn resulted in a loss per share of 2.16 taka. Furthermore, the financial strain extended into the January-March quarter, during which the firm recorded approximately 56 billion taka in revenue alongside a net loss of approximately 21 billion taka, bringing its total accumulated losses to an alarming figure of approximately 78 billion taka. By the end of March 2026, the net asset value (NAV) per share of the company stood at 7.92 taka.

Despite the overwhelming operational hurdles, company representatives remain cautiously optimistic about potential avenues for recovery should the energy landscape improve. Sudip Banik noted that prices for the company's manufactured products have risen by approximately 20 percent. Additionally, external pressures have slightly eased as the impact of India's anti-dumping measures has somewhat decreased, while the government has favorably increased export incentives from 1 percent to 5 percent. Management believes that even a minor improvement in the ongoing electricity situation could enable the business to expand its operations significantly, allowing the enterprise to better leverage its secondary production unit where approximately 1 billion taka has been invested.