Karachi: Mehran Sugar Mills Limited has announced its financial results for the third quarter ended June 30, 2026, revealing a significant decline in net profit compared to the previous year. The company reported a net profit of 516.49 million rupees for the nine-month period, a sharp decrease from the 1.25 billion rupees recorded in the corresponding period of 2025. The company's earnings per share also fell to 6.89 rupees from 16.68 rupees.
The board of directors, in a meeting held on July 30, 2026, at the company's registered office, approved the condensed interim financial statements and recommended no cash dividend, bonus shares, right shares, or any other entitlements or corporate actions. The company intends to transmit the financial statements electronically via the Pakistan Unified Corporate Reporting System-PUCAR.
The turnover for the nine-month period ended June 30, 2026, stood at 11.47 billion rupees, down from 13.04 billion rupees in the same period of 2025. After accounting for sales tax/federal excise duty, the net turnover was 9.35 billion rupees, showing a moderate move of 12.87%. The cost of sales decreased to 8.17 billion rupees from 9.26 billion rupees, resulting in a gross profit of 1.18 billion rupees, down from 1.47 billion rupees.
According to information available from the Pakistan Stock Exchange (PSX), Mehran Sugar Mills Limited experienced an operating profit of 850.80 million rupees, a significant move down from 1.91 billion rupees in 2025. The company's distribution costs and administrative expenses were reported at 138.02 million rupees and 368.52 million rupees, respectively.
The finance costs reduced to 272.48 million rupees from 387.00 million rupees, while the profit before taxation and levies saw a decline to 801.85 million rupees from 1.65 billion rupees. Taxation for the period was recorded at 92.60 million rupees, significantly lower compared to 307.25 million rupees in the previous year.
The company's total assets as of June 30, 2026, increased to 10.15 billion rupees from 7.41 billion rupees as of September 30, 2025. Non-current assets stood at 4.47 billion rupees, while current assets were reported at 5.68 billion rupees. Share capital and reserves totaled 4.93 billion rupees, with non-current liabilities and current liabilities at 1.53 billion rupees and 3.69 billion rupees, respectively.
Despite the challenges and a notable decrease in profit margins, the company has maintained its authorized and paid-up capital at 1.50 billion rupees and 749.28 million rupees, respectively. The reserves, however, saw an increase to 4.18 billion rupees from 4.02 billion rupees.