Jauharabad Sugar Mills Limited (PSX: JSML) has announced its financial results for the nine months ended June 30, 2026, reporting a net profit of Rs73.26 million, compared with Rs189.94 million recorded during the corresponding period last year. The company’s earnings per share (EPS) also declined to Rs2.15, down from Rs5.57 in the same period of FY25.
According to the financial statement approved by the Board of Directors on July 29, 2026, the company did not recommend any cash dividend, bonus shares, right shares, or any other corporate action for shareholders.
During the nine-month period, net sales fell to Rs7.38 billion from Rs8.29 billion a year earlier, reflecting softer revenues. Gross profit also declined to Rs933.89 million compared with Rs1.09 billion in the corresponding period of last year, mainly due to lower sales volumes and continued cost pressures.
Operating profit stood at Rs704.89 million, down from Rs858.49 million in 9MFY25. The company continued to face significant financing costs of Rs505.21 million, although these were slightly lower than the Rs514.86 million recorded in the same period last year. Profit before taxation and levy amounted to Rs200.35 million, while profit before tax came in at Rs108.16 million after accounting for levy expenses.
For the third quarter alone, the company remained profitable but at a much lower level. Quarterly net profit stood at Rs2.09 million, compared with Rs69.91 million in the same quarter of FY25, resulting in quarterly EPS of Rs0.06 versus Rs2.05 a year earlier.
On the balance sheet, total assets increased to Rs21.00 billion as of June 30, 2026, from Rs15.36 billion at the end of September 2025. The increase was primarily driven by higher inventories, cash balances, and working capital requirements. Shareholders’ equity stood at Rs10.61 billion, while current liabilities rose to Rs9.33 billion, largely due to higher short-term borrowings.
The company also reported net cash used in operating activities of Rs3.89 billion during the nine-month period, compared with Rs1.65 billion in the corresponding period last year, reflecting increased working capital consumption, particularly due to higher inventory levels.
Despite remaining profitable, Jauharabad Sugar Mills experienced a notable decline in earnings during the first nine months of FY26 as reduced sales, lower operating margins, and elevated finance costs weighed on overall profitability. The company’s future performance will largely depend on sugar market dynamics, financing costs, and operational efficiency during the remainder of the financial year.
