Karachi: Ansari Sugar Mills Limited has released its financial statements for the third quarter ending June 30, 2026, revealing a substantial decline in sales and gross profit compared to the same period last year. The announcement was made on July 28, 2026, as part of the company's directors' report.
The company reported sales of 693.95 million Pakistani Rupees (PKR) for the period, a significant move downward from 1.67 billion PKR recorded in the previous year. Gross profit also saw a decline, standing at 153.65 million PKR compared to the 555.14 million PKR reported a year earlier. Despite these challenges, the loss before tax decreased to 32.36 million PKR from 46.86 million PKR in the prior year.
Ansari Sugar Mills Limited, primarily engaged in the production and sale of sugar, also generates by-products such as bagasse for in-house power generation and molasses for ethanol production. The company commenced its operations for the 2025-26 crushing season on December 6, 2025, maintaining a stable crushing duration of 108 days, similar to the previous year. Notably, sugar production increased to 15,296.9 metric tons from 13,109 metric tons, while sugar recovery improved to 10.668% from 8.810%, marking a big move upward in production efficiency.
According to information available from the Pakistan Stock Exchange (PSX), Ansari Sugar Mills Limited faced operational constraints due to limited banking facilities and prevailing liquidity pressures. The company is in advanced discussions with its bankers to restructure existing obligations, aiming to bolster its liquidity position.
Molasses production slightly increased to 7,958.909 metric tons from 7,753.821 metric tons, with molasses recovery also improving to 5.55% from 5.2%. Despite the increased production metrics, the company's financial performance was adversely affected by the unavailability of a provincial support price, compelling Ansari Sugar Mills to manage raw material procurement at an average price of Rs. 450-470 per 40 kg to ensure uninterrupted production.
The company's installed capacity remains significantly underutilized, reflecting ongoing financial and operational challenges. As Ansari Sugar Mills continues to engage in talks for financial restructuring, the outcome of these discussions will be crucial in determining its future liquidity and operational efficiency.