Shahmurad Sugar Mills Limited has announced its half-year financial results for the period ended March 31, 2026, highlighting stronger operational performance in its sugar division despite facing challenging market conditions and a decline in profitability compared to the same period last year.
During the six-month period, the company crushed 503,232 metric tons of sugarcane, representing an increase of approximately 6.7% compared to 471,495 metric tons processed during the corresponding period of 2025. Improved cane availability and favorable crop conditions contributed to higher production volumes and enhanced efficiency.
Sugar production increased significantly to 54,953 metric tons from 47,953 metric tons a year earlier. The company’s sugar recovery rate also improved from 10.20% to 10.92%, contributing an additional 3,622 metric tons of sugar output. Management attributed the stronger agricultural performance to adequate rainfall and improved irrigation water availability across Sindh.
Despite stronger production figures, sales revenue declined to Rs. 7.32 billion from Rs. 10.99 billion recorded during the same period last year. Gross profit stood at Rs. 975.9 million compared with Rs. 1.23 billion in the prior-year period. Profit after tax amounted to Rs. 319.7 million, down from Rs. 358.3 million, while earnings per share decreased to Rs. 15.14 from Rs. 16.96.
The ethanol division faced a more challenging environment. Ethanol production decreased by 20.4% to 27,546 metric tons compared to 34,600 metric tons in the previous year. The company reported lower export volumes of 25,506 metric tons versus 33,396 metric tons during the same period last year. Management noted that delayed crushing operations resulted in lower opening inventories of raw materials, affecting production and export performance.
On the financial position front, total assets increased to Rs. 31.19 billion as of March 31, 2026, compared to Rs. 22.82 billion at the beginning of the fiscal year. The company also strengthened its strategic investments through the acquisition of a 9.03% stake in Al Noor Sugar Mills Limited, contributing to a substantial rise in long-term investments.
Management remains cautious regarding the business outlook, citing ongoing global economic uncertainty, recessionary pressures in major economies, supply chain disruptions, and geopolitical tensions affecting international trade routes. However, the company expects ethanol production to improve during the remainder of the year, subject to the availability of raw materials.
Overall, Shahmurad Sugar Mills demonstrated resilience through stronger sugar production and operational efficiency gains, positioning itself to navigate a challenging economic environment while pursuing long-term growth opportunities.
