KARACHI: Shahtaj Sugar Mills Limited (PSX: SHSML) reported a net loss of Rs93.48 million for the nine months ended June 30, 2026, compared to a net profit of Rs9.55 million in the corresponding period last year, as higher finance costs outweighed an improvement in gross profitability.
According to the company’s financial results, net sales declined to Rs6.62 billion during the nine-month period from Rs7.08 billion a year earlier. Despite the drop in revenue, Shahtaj Sugar Mills improved its gross profit to Rs1.05 billion, up from Rs742.14 million in the same period last year, reflecting stronger gross margins.
However, the improvement at the gross level was offset by increased operating expenses and a sharp rise in finance costs. The company’s finance cost surged to Rs641.94 million, more than doubling from Rs276.25 million recorded in the corresponding period of the previous year. As a result, the company posted a loss before taxation of Rs91.57 million, compared with a pre-tax profit of Rs9.55 million a year earlier.
After accounting for taxation, Shahtaj Sugar Mills recorded a net loss of Rs93.48 million, translating into a loss per share (LPS) of Rs7.78, compared with earnings per share (EPS) of Rs0.79 in the same period of FY25.
For the quarter ended June 30, 2026, the company posted a net loss of Rs295.46 million, compared with a profit of Rs48.88 million in the corresponding quarter last year, reflecting continued pressure from elevated financing costs.
On the balance sheet, total assets increased significantly to Rs13.65 billion as of June 30, 2026, from Rs8.39 billion at the end of September 2025, primarily driven by a substantial increase in stock-in-trade and short-term borrowings. Meanwhile, shareholders’ equity declined to Rs3.23 billion from Rs3.34 billion due to the period’s loss.
The Board of Directors did not recommend any cash dividend for the nine-month period ended June 30, 2026.
