KARACHI: Shahmurad Sugar Mills Limited (PSX: SHSML) reported a net profit of Rs515.8 million for the nine-month period ended June 30, 2026, compared with Rs652.2 million earned during the corresponding period last year, reflecting a decline of around 21% amid lower sales and reduced other income.
According to the company’s latest financial results, sales revenue declined to Rs15.20 billion from Rs17.00 billion recorded in the same period of the previous year. Gross profit also slipped to Rs1.70 billion, compared with Rs1.89 billion a year earlier, as overall revenue softened despite operational improvements in the sugar business. Earnings per share (EPS) stood at Rs24.42, down from Rs30.88 in the corresponding period last year.
The company attributed stronger operational performance in its sugar division to improved sugarcane availability during the crushing season. Shahmurad Sugar Mills crushed 503,232 metric tons of sugarcane, up from 471,495 metric tons last year, resulting in sugar production of 54,953 metric tons, an increase of 14.6% over the previous year’s 47,953 metric tons. The sugar recovery rate also improved to 10.92%, compared with 10.20% a year earlier.
The ethanol division produced 45,228 metric tons of ethanol during the review period, slightly below the 45,693 metric tons produced in the corresponding period last year. Management said production is expected to improve during the remainder of the year, supported by timely raw material availability and favorable product prices.
On the financial front, operating profit remained under pressure due to lower revenues and reduced other income, although finance costs declined to Rs527.3 million from Rs582.9 million in the previous year. The company also reported a share of loss from associates amounting to Rs4.9 million during the period.
Looking ahead, Shahmurad Sugar Mills expects a stronger sugarcane crop in the next crushing season, driven by better grower prices, timely payments to farmers, and improved irrigation following recent rainfall. However, the company cautioned that domestic sugar production could exceed local demand, prompting the industry to seek timely export approvals from the government to avoid an oversupply situation.
The company also noted that ethanol exports may face challenges due to the ongoing crisis in the Middle East. Management said it is actively diversifying export destinations to minimize any potential disruption to export volumes and remains focused on navigating both domestic and global market uncertainties.
