Walton Hi-Tech Recommends 190% Dividend for FY26 on Lower Finance Costs

The Financial Express, Dhaka — Walton Hi-Tech Industries PLC has recommended a 190 percent dividend for the financial year ended 30 June 2026 — comprising a 180 percent cash dividend and a 10 percent stock dividend — marking one of the most generous payouts in the Bangladesh stock market for FY26.

The company's board of directors recommended the dividends at a meeting on Saturday, according to a stock exchange filing on Sunday. The dividend announcement reflects Walton's strong financial performance in FY26, driven primarily by a substantial reduction in finance costs.

📊 FY26 Financial Highlights

• 💰 EPS FY26: Tk 33.75 (up from Tk 31.11 in FY25 — +8.5% YoY)
• 💰 Finance cost reduction: Tk 2.67 billion reduction in finance costs
• 💰 Finance cost as % of sales: fell to 2.45% (from 6.33% a year earlier)
• 💰 NOCFPS: Tk 63.72 (up from Tk 52.91 — +20.4% YoY)
• 💰 NAV per share (with revaluation): Tk 381.26 (vs Tk 363.40 in FY25)
• 💰 NAV per share (without revaluation): Tk 280.24 (vs Tk 262.08 in FY25)
• 💰 Dividend: 190 percent (180% cash + 10% stock)

👥 Why Finance Costs Dropped

The company attributed the improvement mainly to a Tk 2.67 billion reduction in finance costs, which fell to 2.45 percent of sales from 6.33 percent a year earlier. The dramatic reduction in finance costs reflects:

• 💰 Lower interest rate environment — treasury yields falling into single digits
• 💰 Improved working capital management — better cash flow cycles
• 💰 Reduced borrowing — lower debt service burden
• 💰 Treasury yield decline — Bangladesh Bank monetary easing
• 💰 Banking sector stabilisation — lower bank lending rates

The finance cost reduction from 6.33 percent to 2.45 percent of sales represents a 61 percent reduction in the finance cost ratio — a structural improvement that materially expanded Walton's operating margin and underpinned the EPS growth.

📊 Operating Cash Flow Improvement

Walton's net operating cash flow per share (NOCFPS) also increased to Tk 63.72 from Tk 52.91. The improvement was mainly driven by:

• 💰 8.84 percent (Tk 6.94 billion) increase in collections from customers
• 💰 2.31 percent reduction in payments to suppliers

The combination of higher customer collections and lower supplier payments generated a substantial improvement in operating cash flow — providing Walton with the liquidity needed to fund its dividend payout and its ongoing Green Energy capacity expansion programme.

🏛 AGM and Record Date

The Annual General Meeting (AGM) will be held on October 15, 2026, at 12:00 noon through a digital platform. The record date is September 20, 2026 — providing shareholders with a clear timeline for dividend eligibility.

🔌 Stock Dividend for Green Energy Expansion

The board said the stock dividend was recommended to finance the company's ongoing Green Energy capacity expansion under its BMRE (Balancing, Modernisation, Rehabilitation and Expansion) programme, aimed at maintaining an uninterrupted power supply. The strategic rationale reflects Walton's response to the broader gas and power crisis affecting Bangladeshi industry — with the company investing in renewable energy capacity to ensure operational continuity.

The company said the stock dividend would be recommended only from retained earnings. It would not be sourced from:

• 💰 Capital or revaluation reserves
• 💰 Unrealised gains or profits earned before incorporation
• 💰 Any reduction in paid-up capital
• 💰 Any measure that would leave retained earnings negative after the dividend

The conservative dividend sourcing policy reflects sound corporate governance — ensuring that the dividend is funded from genuine operating profits rather than accounting reserves or balance sheet manipulation.

📈 Market Reaction

Following the disclosure, the company's share price rose 1.98 percent to Tk 401 after one and a half hours of trading on the Dhaka Stock Exchange on Sunday — despite the overall market opening lower. The outperformance signals strong investor confidence in Walton's FY26 results and dividend payout, particularly given the broader market volatility that has characterised recent trading sessions.

🌏 Strategic Context: Walton Hi-Tech

Walton Hi-Tech Industries PLC is one of Bangladesh's largest listed manufacturing companies, operating across multiple product categories:

• 🧷 Refrigerators and home appliances — dominant domestic market share
• 🧷 Air conditioners — growing market segment
• 🧷 Mobile phones and electronics — expanding product portfolio
• 🚢 Motorcycles and electric vehicles — automotive segment
• 🔌 Industrial green energy — renewable capacity expansion

Walton's diversified manufacturing base has positioned the company as a key beneficiary of Bangladesh's growing domestic consumer market and the country's broader industrial capacity expansion. The FY26 dividend payout signals the company's confidence in its ongoing operational strength despite the broader macroeconomic headwinds.

📊 Strategic Implications

Walton's FY26 results and dividend carry several strategic implications:

• ✅ Strong corporate profitability: Walton's 8.5% EPS growth demonstrates industrial resilience
• ✅ Lower finance costs: benefit from Bangladesh Bank monetary easing
• ✅ Green energy investment: stock dividend funds BMRE renewable capacity expansion
• ✅ Investor confidence: positive market reaction despite broader market weakness
• ✅ Conservative dividend sourcing: funded from retained earnings, not reserves
• ✅ Working capital discipline: improved collections and supplier payment management

The Walton FY26 dividend payout represents a positive signal for Bangladesh's broader listed manufacturing sector — demonstrating that well-managed industrial companies can deliver strong financial performance even amid the gas and power crisis, banking sector stress, and broader macroeconomic headwinds that have characterised FY26. The 190 percent dividend — particularly the 180 percent cash component — will provide Walton shareholders with substantial cash returns and reinforces the company's position as one of Bangladesh's most reliable dividend-paying listed companies.