Haseeb Waqas Sugar Mills Limited has released its condensed interim financial statements for the half year ended March 31, 2026, reflecting continued operational and financial challenges. The company reported ongoing losses, shrinking equity, and mounting liabilities, highlighting the difficult conditions currently faced by Pakistan’s sugar manufacturing sector.
According to the company’s interim financial report, the business recorded a net loss after taxation of Rs. 113.6 million during the half year ended March 31, 2026, compared to a loss of Rs. 112.8 million during the same period in 2025. While the increase in losses was relatively moderate, the figures indicate that the company remains under significant financial stress.
One of the key concerns highlighted in the report is the company’s accumulated loss position, which has reached approximately Rs. 5.73 billion. This has substantially weakened shareholders’ equity and reduced the company’s overall financial stability. The balance sheet also shows total current liabilities exceeding Rs. 4.13 billion, including large short-term borrowings and markup obligations.
Despite the losses, the company maintained substantial property, plant, and equipment assets valued at over Rs. 5.46 billion. However, operational performance remained weak, with no net sales reported during the period while administrative and production-related costs continued to impact profitability.
The cash flow statement also reflects operational challenges. Net cash used in operating activities stood at approximately Rs. 7.68 million during the half year. However, financing support from directors and sponsors helped stabilize liquidity, with additional director loans amounting to Rs. 7.07 million during the reporting period.
Another notable factor is the continued reliance on director financing. The company’s loan from directors increased to approximately Rs. 1.29 billion by March 2026. This suggests that internal stakeholder support remains critical for maintaining operations and managing financial obligations.
Industry analysts note that Pakistan’s sugar sector has been facing rising production costs, energy price pressures, financing challenges, and inconsistent market conditions in recent years. Companies with weaker liquidity positions have found it particularly difficult to sustain profitability under these circumstances.
Although the report presents a difficult financial picture, management support and the company’s sizable fixed asset base may provide a foundation for future restructuring or recovery efforts. Investors and market observers will likely continue monitoring the company’s operational strategy, financing structure, and industry conditions over the coming quarters.
The interim financial statements were signed by Chief Executive Abdullah Ilyas, Director Raza Mustafa, and Chief Financial Officer Syed Mubashir Hussain Bukhari.
