Walton profit falls as revenue declines amid VAT pressure

Walton Hi-Tech Industries PLC reported a notable decline in
both revenue and profit in the January–March quarter of FY26, reflecting
mounting cost pressures and intense market competition.
According
to the company's latest financial disclosure, revenue dropped by 13%
year-on-year to Tk1,786 crore in the third quarter, while net profit plunged by
29% to Tk279.60 crore.
Earnings
per share (EPS) also fell to Tk8.39 from Tk11.76 in the same period a year
earlier, indicating a significant contraction in profitability.
The downturn extended to the nine-month period from July to
March of FY26, during which Walton's revenue edged down to Tk4,548 crore.
Net
profit for the period declined by 8% to Tk642.94 crore, compared to the
corresponding period of the previous fiscal year. EPS stood at Tk19.29, down
from Tk20.90 a year earlier.
The
company attributed the weaker financial performance primarily to a sharp
increase in output value-added tax (VAT) on key products. The VAT rate doubled
from 7.5% to 15%, significantly raising costs. However, due to stiff
competition in the consumer electronics market, Walton was unable to pass on
the additional tax burden to customers through higher prices.
To
remain competitive and protect its market share, the company increased rebate
offerings, which further squeezed profit margins. This combination of rising
tax expenses and pricing constraints weighed heavily on the company's bottom
line during the period, the company added.
Despite
the decline, Walton remains one of the country's leading electronics
manufacturers. Industry analysts say its long-term performance will depend on
how effectively it manages tax pressures and competes in the domestic market.
Walton
share price fell by 1.19% on Wednesday to close at Tk364.30 at the Dhaka Stock
Exchange.
















