KARACHI: Mirpurkhas Sugar Mills Limited (PSX: MIRKS) has reported a net loss of Rs188.36 million for the half-year ended June 30, 2026, compared with a loss of Rs28.58 million recorded in the corresponding period last year, reflecting mounting pressure on the company’s profitability.
According to the financial results approved by the Board of Directors in its meeting held on July 30, 2026, the company also announced that it would not distribute any cash dividend, bonus shares, or right shares for the period.
During the six-month period, net turnover declined to Rs8.78 billion from Rs9.58 billion a year earlier. Gross profit also fell to Rs1.09 billion, compared with Rs1.37 billion in the same period last year, reflecting weaker operating performance.
Operating profit stood at Rs579.28 million, down from Rs901.75 million in the corresponding period of 2025. The company continued to face a heavy financing burden, with finance costs amounting to Rs851.86 million, which significantly outweighed operating earnings. Although Mirpurkhas Sugar Mills recorded Rs223.59 million as its share of profit from associates, it was insufficient to offset financing expenses and other costs.
As a result, the company posted a loss per share (LPS) of Rs2.83, compared with an LPS of Rs0.43 in the same period last year.
On a quarterly basis, Mirpurkhas Sugar Mills incurred a net loss of Rs186.83 million for the quarter ended June 30, 2026, compared with a profit of Rs225.80 million in the corresponding quarter of 2025. Quarterly earnings translated into a loss per share of Rs2.81, versus earnings per share of Rs3.39 a year earlier.
The company’s financial position showed total assets increasing to Rs16.05 billion as of June 30, 2026, from Rs14.00 billion at the end of September 2025. However, shareholders’ equity declined to Rs2.49 billion, reflecting the impact of the reported losses during the period.
The results underscore the challenges facing the company amid lower sales, compressed margins, and elevated finance costs, while investors will be watching future quarters for signs of operational improvement and profitability recovery.
