Shahtaj Sugar Mills Limited (PSX: SHJS) reported a net loss of Rs93.475 million for the nine-month period ended June 30, 2026, reversing a net profit of Rs9.545 million recorded during the same period last year. The company attributed the downturn primarily to a sharp decline in sugar prices during the third quarter and a significant increase in finance costs, despite achieving record production levels and commissioning its new cogeneration power plant.
During the reporting period, the company crushed 851,690 metric tons of sugarcane, up substantially from 591,293 metric tons in the corresponding period last year. Sugar production increased by 57.65% to 84,627 metric tons, while sugar recovery improved to 9.93%, reflecting better sucrose content in the harvested crop. Management credited higher sugarcane availability and improved operational efficiency for the strong production performance.
Shahtaj Sugar Mills generated Rs6.616 billion in revenue during the nine-month period, compared with Rs7.078 billion a year earlier. Although sales declined, lower production costs helped improve gross profit to Rs1.051 billion, compared with Rs742.1 million in the previous year’s corresponding period. The improvement was supported by higher production volumes, improved sugar recovery, and additional revenue generated from the company’s newly operational power project.
The company, however, faced a sharp increase in finance costs, which rose to Rs641.9 million from Rs276.3 million. Management explained that the increase resulted from higher short-term borrowings required for working capital and financing costs related to its 32 MW bagasse-based cogeneration power plant, which achieved Commercial Operation Date (COD) on October 10, 2025. As a result, Shahtaj posted a loss per share (LPS) of Rs7.78, compared with earnings per share (EPS) of Rs0.79 in the same period last year.
A key milestone during the period was the successful commencement of commercial electricity generation from the company’s bagasse-based power plant. The facility has begun supplying electricity to Pakistan’s national grid under a 30-year Energy Purchase Agreement (EPA) with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G). Management expects the project to provide a stable and recurring source of revenue in the years ahead while supporting the company’s long-term diversification strategy.
Looking ahead, the board expects sugarcane availability to improve modestly in the upcoming crushing season due to better farming practices and favorable weather conditions. The company believes enhanced crop yields, improved sucrose content, and continued support to growers through modern agricultural techniques could strengthen operational performance, provided market conditions remain stable.
