Lahore: Baba Farid Sugar Mills Limited has disclosed its financial results for the second quarter ending March 31, 2026, revealing a period of financial difficulties. The announcement was made following the company’s board meeting held at its registered office in Lahore on May 18, 2026.

According to the unaudited condensed interim statement, the company experienced a noticeable decrease in revenue from contracts with customers, recording 1.03 billion rupees for the half-year ended March 31, 2026, compared to 4.17 billion rupees in the same period last year. This represents a very large or significant move of -75.36%.

The cost of sales also declined, albeit not as sharply, from 3.67 billion rupees to 972.31 million rupees, illustrating a very large or significant move of -73.49%. Consequently, the gross profit stood at 56.84 million rupees, a substantial reduction from the previous year’s 502.78 million rupees.

The company’s financial performance was further hampered by increased general and administrative expenses, which amounted to 117.11 million rupees, up from 90.23 million rupees in the previous year. Despite efforts to mitigate losses through other income, totaling 75.27 million rupees, the operating profit was adversely affected, resulting in an operating loss of 120.07 million rupees compared to the prior year’s loss of 38.99 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), Baba Farid Sugar Mills reported a loss before tax of 108.07 million rupees, a notable contrast to last year’s profit of 78.39 million rupees. After accounting for income tax, the loss for the period amounted to 57.22 million rupees, a reversal from the previous year’s profit of 88.65 million rupees.

The company’s balance sheet reflected a decrease in the surplus on revaluation of fixed assets, affecting the total comprehensive income, which recorded a loss of 182.22 million rupees for the period. This is a significant shift from the prior year’s income gain of 57.22 million rupees.

Additionally, a final cash dividend for the year ended September 30, 2025, was distributed at a rate of 20%, amounting to 18.90 million rupees. The balance of accumulated loss as of March 31, 2026, was reported at 2.30 billion rupees, leading to a total equity of 5.05 billion rupees.

Baba Farid Sugar Mills operates within the sugar industry, a sector currently facing economic challenges. The company’s financial results underscore the broader market pressures impacting the industry.