Titas Gas Transmission and Distribution PLC reported a net loss of Tk595 crore in the fiscal year 2026, marking a 23 percent decrease from the Tk772 crore loss recorded in the previous year. The state-owned gas distributor’s accumulated losses have now reached Tk2,275 crore since fiscal year 2023.

The company attributed part of the improvement to a reduction in sales tax, which was lowered by the government from 2 percent to 0.6 percent following a request from Titas Gas’s board in 2025. Officials indicated that this measure saved the company approximately Tk2 billion, contributing to the smaller loss in FY26. The company also reported a reduction in system loss as a factor contributing to improved financial performance.

Despite the narrower loss, several financial indicators highlight ongoing challenges. The net asset value (NAV) per share declined to Tk83.94 by June 2026, down from Tk90.13 a year earlier, reflecting an erosion of shareholders’ equity. Meanwhile, net operating cash flow per share dropped sharply into negative territory at minus Tk2.70, compared with a positive Tk18.17 in FY25. This negative operating cash flow signals that Titas Gas’s core business activities consumed cash rather than generating it during the year, potentially forcing the company to depend on cash reserves, additional borrowing, or other funding sources to meet its financial obligations.

Titas Gas has announced a recommended cash dividend of 2 percent for FY26, with 17 November set as the record date for determining eligible shareholders. The company’s Annual General Meeting (AGM) to approve the financial statements and dividend proposal is scheduled for 24 December. Company representatives stated that the dividend payment would be made from retained earnings despite the negative cash flow situation.

Since turning profitable with a Tk3.18 billion net income in FY22, Titas Gas has struggled due to ongoing system losses, tax burdens, and insufficient operating margins. It posted a loss of Tk165 crore in FY23, which expanded to Tk772 crore in FY25 before the recent improvement.

The company currently holds a 'B' category status on the stock exchanges, reflecting its financial and operational challenges. The reduction in losses suggests some progress, but analysts note that the continuing decline in net assets and cash flow issues underscore the need for structural improvements to restore the company’s long-term financial health.