Bangladesh Corporate Earnings May Rise Up to 40%: CAL

Corporate profits in Bangladesh are expected to grow by about 40 percent over the next two years, according to CAL. This growth may be supported by lower inflation, cheaper global commodities, reduced borrowing costs, and stronger consumer demand. Moreover, CAL’s latest report on Bangladesh shows an almost fully positive outlook.

According to CAL, overall corporate revenues may grow by 16 percent in 2025, supported by lower inflation. Profit margins are also expected to improve as falling global commodity prices and a stable taka reduce import expenses.

The report predicts that the Dhaka Stock Exchange index could rise above 10,000 points within the next 18 to 24 months the highest level in its history. Describing the situation as a “Goldilocks phase” for the market marked by steady growth and low inflation CAL suggested that Bangladesh may be entering one of its strongest stock rallies ever.

Key economic indicators are already showing improvement. Inflation has dropped to 8.5 percent due to strict monetary policies and favorable global price trends. Foreign currency reserves have climbed to a two year high, helping keep the taka stable, while lower yields on government securities point to declining interest rates. Positive current account and balance of payments positions are also adding to investor confidence, the report noted.

CAL estimates that the DSEX index could gain up to 85 percent, drawing comparisons with Pakistan and Sri Lanka, where stock markets surged more than 150 percent during similar economic recoveries. In Pakistan, the Karachi All Share Index jumped 214 percent in two years as inflation eased, while Sri Lanka’s market rose 162 percent in the same period.

The outlook highlights the next two years as a turning point for Bangladesh’s capital markets, with scope to attract unprecedented levels of both foreign and domestic investment. CAL said the mix of economic stability, stronger company performance, and investor optimism could push the DSE into its most dynamic growth stage yet.

It also noted that after the 2008 national election, the stock market experienced a strong rally, suggesting that the upcoming polls in early 2026 may provide similar post-election confidence.

Currently, low stock valuations are creating opportunities for investors to secure attractive dividend yields, especially in large consumer companies. CAL also forecasts the exchange rate to remain between Tk 122 and Tk 125 per dollar by the end of 2025 as the current account and balance of payments turn positive.

Inflation is expected to decline further, possibly reaching 6.5 to 7.5 percent by next December the lowest in three years while interest rates may return to single digits due to weak loan demand and higher foreign inflows.

Even so, CAL cautioned that political tensions, global conflicts, or a downturn caused by trade restrictions could still challenge Bangladesh’s growth outlook.