State-owned Keru and Company (Bangladesh) Limited has posted its highest-ever net profit, despite continuing losses in its sugar production unit, as strong earnings from its other operations lifted the company’s overall financial performance.
The company, based in Darshana in Chuadanga district and operating for nearly nine decades, recorded a net profit of Tk 165 crore 24 lakh 31 thousand in the 2025-26 financial year from all of its units combined. The figure is the highest net profit in the company’s history.
Keru’s latest financial results also surpassed the previous record set just a year earlier. In the 2024-25 financial year, the company earned a net profit of Tk 129 crore 44 lakh 74 thousand. The latest result therefore represents an increase of around Tk 35 crore 80 lakh in a single year.
The sharp rise in overall profit, however, masks a persistent weakness in the company’s traditional sugar business.
According to the provisional figures for 2025-26, Keru’s sugar production unit incurred a loss of Tk 60 crore 19 lakh 73 thousand. The unit had recorded a loss of Tk 62 crore 35 lakh in the previous financial year. While the loss has narrowed slightly, the sugar operation continues to remain a major financial burden on the company.
The distillery unit remains the principal contributor to Keru’s profitability. It generated a profit of Tk 223 crore 79 lakh 32 thousand during the 2025-26 financial year. Earnings from other operations also added to the company’s financial strength.
The organic fertiliser unit made a profit of Tk 1 crore 47 lakh 84 thousand, while the commercial farm earned Tk 1 crore 48 lakh 4 thousand. The Akandabaria unit contributed Tk 7 lakh 62 thousand, and the distillery medicine unit recorded a profit of Tk 3 lakh 79 thousand.
These earnings were sufficient to offset the substantial loss from sugar production and leave the company with a record net profit.
Keru’s financial performance has improved steadily over the past three financial years. In 2023-24, the company’s net profit stood at Tk 112 crore 7 lakh 91 thousand. It rose to Tk 129 crore 44 lakh 74 thousand in 2024-25 before climbing further to Tk 165 crore 24 lakh 31 thousand in 2025-26.
The sugar division, however, has not followed the same trajectory. It incurred a loss of Tk 60 crore 33 lakh in 2023-24, with the deficit increasing to Tk 62 crore 35 lakh in 2024-25. The loss then eased marginally to Tk 60 crore 19 lakh 73 thousand in 2025-26.
This means that while the company’s total profit has risen by more than Tk 53 crore over two years, losses in the sugar unit have remained broadly around the Tk 60 crore mark.
Industry insiders attribute the continuing losses in sugar production to several longstanding problems, including ageing machinery, the quality of sugarcane and a relatively low rate of sugar recovery. These factors can push up production costs while limiting the amount of sugar obtained from the cane processed at the mill.
The contrast between the sugar mill and the distillery has become increasingly significant for Keru’s financial position. While sugar production continues to require substantial expenditure, the distillery and other units have emerged as stronger sources of income. The company’s diversified operations have therefore played a crucial role in maintaining profitability despite the weakness of its sugar business.
Keru’s sugar and distillery complex in Darshana was established in 1938. When operations began, the facility had a daily sugarcane crushing capacity of 1,000 tonnes and the ability to produce 18,000 proof litres of spirit. Over the decades, the company expanded beyond its original sugar and distillery operations into areas including medicine, commercial farming and organic fertiliser production.
Managing Director Rabbir Hasan said the company had managed to generate higher profits from several of its units compared with the previous year. He also said the loss in the sugar industry had declined to some extent.
According to him, efforts would continue to reduce losses in the sugar production unit and improve the company’s overall profitability in the future.
Keru’s latest results therefore present a mixed financial picture. The company has achieved a historic profit milestone, driven largely by its distillery and other profitable operations. At the same time, the continuing losses in sugar production underline the need to improve the efficiency and financial viability of the mill.
The record profit demonstrates the strength of Keru’s diversified business model, but reducing the long-running losses in sugar production remains a key challenge if the company is to strengthen its financial performance further.
