Lahore: Shakarganj Limited, a prominent player in the sugar and biofuel industry, reported significant financial setbacks for the nine months ending on June 30, 2026. The company faced challenges due to increased costs and market competition, despite a marked improvement in sugarcane crushing and sugar recovery rates.
The directors of Shakarganj Limited presented the condensed interim financial statements on July 30, 2026, highlighting a challenging period where all business segments were closed in the last quarter due to financial constraints. Notably, the company reported improvements in operational performance, with sugarcane crushing increasing by more than 87% to 936,039 metric tons compared to the corresponding period last year. Sugar recovery also improved by more than 12%. However, the average sugarcane cost increased by more than 20% to Rs. 486 per 40 kg, while the average sugar sale price saw a modest increase of around 4%.
According to information available from the Pakistan Stock Exchange (PSX), Shakarganj Limited's sales revenue for the nine-month period stood at Rs. 1,154.35 million, a significant increase from Rs. 524.27 million in the same period last year. Despite this, the company recorded a gross loss of Rs. 200.62 million, up from Rs. 136.79 million in the previous year. The loss before levy and income tax was reported at Rs. 284.10 million, compared to Rs. 224.23 million in the previous year. The loss after income tax reached Rs. 2,748.31 million, a big move from the Rs. 2,033.66 million loss recorded in the same period last year.
The Sugar Division reported revenue of Rs. 11,237 million, with an inter-segment sale of Rs. 227 million. Despite improvements in sugarcane crushing and production, the division sustained a gross loss of 15.49%, a moderate move from a gross loss of 23.52% in the previous period. The division's loss before tax and unallocated expenses was Rs. 2,079.02 million, compared to Rs. 1,498.52 million last year.
In the Biofuel Division, decreased export activity led to a reduction in sale revenues to Rs. 306 million, from Rs. 585 million in the previous year. The division produced 1,703,651 liters of biofuel, a very large or significant move from 4,763,250 liters produced last year. The gross loss for the division was Rs. 215.49 million, compared to Rs. 140.75 million in the corresponding period last year.
The company reported a decrease in total assets to Rs. 17,165.31 million as of June 30, 2026, from Rs. 19,375.24 million on September 30, 2025. Total shareholders' funds decreased to Rs. 4,717.39 million, down from Rs. 7,327.35 million as of September 30, 2025. The break-up value per share fell to Rs. 37.74 from Rs. 58.62.
A significant change occurred in Shakarganj Limited's investment in Shakarganj Food Products Limited (SFPL). The company's equity stake in SFPL diluted from 52.39% to 43.99% following a decision not to subscribe to the right shares offered by SFPL. Consequently, SFPL transitioned from a subsidiary to an associated undertaking as of June 24, 2026.
In response to ongoing challenges, Shakarganj Limited has adopted health and safety practices aligned with prevailing conditions and continues to focus on education, health and safety, energy conservation, and community building, despite limited financial resources.