Econo ball pen maker returns to profit after 9 years, shares jump 6.65%

By the Editorial Team · Monday, October 12, 2026

GQ Ball Pen Industries posted a net profit of Tk1.31 crore in fiscal year 2026, marking a return to profitability for the first time since 2016, driven largely by reduced manufacturing costs and rental income from a commercial property. The company plans to use internally financed modernization efforts to revive its core pen business and rebrand its flagship Econo pen in an effort to regain market share.

GQ Ball Pen Industries has returned to profitability after nearly a decade of losses, posting a net profit of Tk1.31 crore for the fiscal year 2026, according to the company’s financial disclosure. This marks the company's first profit since 2016, when it reported a net income of Tk1.55 crore. Following the announcement, shares of GQ Ball Pen rose 6.65% to Tk609.30 on the Dhaka Stock Exchange, lifting the company’s market capitalization to approximately Tk510 crore.

Founded in 1981 and known for its once-popular Econo ballpoint pen, GQ Ball Pen faced prolonged declines amid shifting consumer preferences and increased competition from larger conglomerates that entered the domestic ballpoint pen market with more modern products and aggressive marketing strategies. The company’s earnings per share for FY26 stood at Tk0.12, with a net asset value per share of Tk143.60 and net operating cash flow per share of Tk0.58.

The company’s turnaround has been driven in part by a reduction in operating expenses and a steady revenue stream from rental income generated by a 14-storey commercial property located in Uttara. Managing Director Uzzal Kumar Saha explained that the firm had scaled back pen manufacturing operations due to aging machinery, a move approved by shareholders in the previous annual general meeting. “Our older machinery prompted us to reduce operations, which helped bring down costs,” he said. The rental income and returns from various investments in land, fixed deposit receipts, and equities have supplemented the company’s financial position.

GQ Ball Pen recommended a 12.5% cash dividend for FY26, an increase from the 10% dividend paid to shareholders for FY25. The company’s annual general meeting is scheduled for November 30, with November 4 as the record date for dividend entitlement.

Despite the return to profit, GQ Ball Pen faces significant challenges in reviving its core pen business, which has lost market share due to competition and evolving customer demands. The company’s FY25 annual report highlighted the need for substantial investment in new machinery, moulds, and marketing efforts to regain lost ground. At the last AGM, shareholders endorsed a balancing, modernization, rehabilitation, and expansion (BMRE) program to update manufacturing equipment. However, Saha noted the company plans to finance this modernization internally rather than incur costly bank loans, which currently carry interest rates of 15-16%.

Once the BMRE project is completed, GQ Ball Pen intends to rebrand the Econo pen in an effort to recapture its former market presence. The company’s shareholding structure as of September shows that sponsors and directors hold 37.77% of shares, while the general public owns 60.71%. Institutional and foreign investors hold smaller stakes at 1.47% and 0.05%, respectively. With a paid-up capital of Tk8.92 crore, the company has been listed on the Dhaka Stock Exchange since 1986.

An insider noted that GQ Ball Pen was established by Qazi Saleemul Huq Kamal and Salma Huq. Qazi Saleemul Huq, known locally as Econo Kamal and a former member of parliament for the Bangladesh Nationalist Party, had been convicted in a corruption case in 2018 but was later acquitted by the Supreme Court following a regime change.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.