Baraka Power Limited’s power plant in Sylhet has been shut down following the expiration of its Power Purchase Agreement (PPA). Additionally, auditors have expressed concern regarding the company’s business future after it issued substantial unsecured loans to a subsidiary. Currently lacking any income from power generation, this listed power company is operating in reliance on the income generated by its subsidiary.

In their opinion on the financial report for the 2023–24 fiscal year, the auditor, Kazi Zahir Khan & Co., Chartered Accountants, stated that Baraka Power provided a loan of Tk 155.32 crore to its subsidiary without collateral. Due to weak loan-related documentation, there is uncertainty over whether these funds can be recovered. The auditors believe this situation has subsequently limited the company’s ability to make new investments.

The audit report further noted that upon the expiration of its PPA with the Bangladesh Power Development Board (BPDB), Baraka Power’s 51-megawatt power plant situated in Fenchuganj, Sylhet, has remained closed since October 23, 2024. Although an application has been submitted to renew the agreement for another five years, BPDB’s approval has not yet been received. Consequently, the company is presently not generating any internal revenue from the power plant. The auditor opined that this uncertainty has created a risk concerning the company’s business continuity.

Furthermore, Baraka Power’s subsidiary, Baraka Fashion Limited, is operating at a loss. As of the end of June this year, the entity’s accumulated losses stood at Tk 68.91 crore. The report also highlighted that during the audit process, Baraka Power’s asset manager was unable to supply a complete list and statement of fixed assets.

In terms of financial performance, the company’s board of directors did not declare any dividend for investors for the most recently concluded 2024–25 accounting year. During that accounting year, Baraka Power’s Earnings per Share (EPS) stood at Tk 0.36, whereas the EPS in the previous accounting year was Tk 1.12. At the same time, for the period ending June 30, 2025, the company’s Net Asset Value per Share (NAVPS) stood at Tk 22.63.

On the other hand, according to the latest published unaudited financial report, Baraka Power’s consolidated earnings per share for the first quarter (July–September) of the current 2025–26 accounting year was Tk 0.18. During the corresponding quarter of the previous accounting year, this income was Tk 0.12. For the period ending September 30, 2025, the company’s Net Asset Value per Share stood at Tk 22.81.

Given the power plant’s closure, substantial high-risk loans, and the subsidiary’s losses, relevant stakeholders believe that anxiety is growing among investors regarding Baraka Power’s overall future business standing.