Karachi: Shahmurad Sugar Mills Ltd. announced its financial results for the nine months ending June 30, 2026, revealing a decline in profits attributed primarily to reduced sales figures. On July 27, 2026, the company's board of directors convened to assess the fiscal performance, which included no dividends, bonus issues, or right shares for the reported period.
The company's sales for the nine months decreased to 15.20 billion rupees from 17.00 billion rupees recorded in the same period the previous year, marking a significant move of -10.60%. The cost of sales also fell from 15.12 billion rupees to 13.49 billion rupees. Despite the decrease in sales and cost of sales, Shahmurad Sugar Mills reported a gross profit of 1.70 billion rupees, down from 1.89 billion rupees in 2025.
Operating profit for the period was 1.15 billion rupees, a decline from the previous year's 1.30 billion rupees. The company experienced a decrease in finance costs, which stood at 527.25 million rupees compared to 582.89 million rupees in 2025. The net profit for the nine-month period was 515.81 million rupees, down from 652.23 million rupees in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share declined to 24.42 rupees from 30.88 rupees, reflecting the challenges faced in maintaining profit margins amid fluctuating market dynamics.
The statement of financial position showed total assets increasing to 26.68 billion rupees from 22.82 billion rupees in September 2025. Notably, the stock-in-trade surged to 9.64 billion rupees from 3.26 billion rupees, while trade debts increased to 1.71 billion rupees from 1.11 billion rupees. Conversely, short-term investments plummeted to 595.32 million rupees from 5.84 billion rupees.
The company’s equity and reserves rose to 13.02 billion rupees from 12.34 billion rupees, driven by an increase in unappropriated profit from 8.20 billion rupees to 8.73 billion rupees. Current liabilities also grew substantially to 10.62 billion rupees from 7.46 billion rupees, primarily due to an increase in short-term borrowings.
Shahmurad Sugar Mills Ltd. continues to navigate a challenging economic landscape, reflecting broader market trends in the designated market category. The company remains focused on aligning its operational strategies to adapt to the evolving financial environment.