Textile Sector Update of Bangladesh

Bangladesh’s RMG sector posted a 12% YoY export growth in FY2025, demonstrating resilience amidst political transition and labor unrest. Listed textile companies saw a 20% YoY rise in revenues (BDT 44bn), led by apparel exporters and spinning mills. Thanks to falling cotton prices, gross profits jumped 39%, lifting margins from 11.9% to 13.8%. Net profits surged 72% YoY, supported by topline growth and stronger margin control.

Looking ahead, declining inflation and easing monetary policies in developed markets are expected to drive global demand. However, with shifting global sourcing patterns, Bangladesh must invest in value addition to remain competitive. The sector is trading at an attractive 11.0x P/E, a ~50% discount from the global median, with potential upside from interest rate cuts and loan repricing.

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