Lahore: Baba Farid Sugar Mills Limited announced a substantial downturn in its financial results for the quarter ending June 30, 2026, as the company battles escalating production costs and declining revenues. According to the announcement made on July 27, 2026, the Board of Directors convened on July 25, 2026, at the company's registered office in Lahore to review the financial performance.

The sugar mill reported a notable reduction in revenue from contracts with customers for the nine months ending June 30, 2026, which stood at 2.67 billion rupees, compared to 7.85 billion rupees in the same period the previous year. This represents a very large or significant move in revenue decline. Similarly, the quarterly revenue for the period ending June 30, 2026, was 1.64 billion rupees, a significant decrease from the 3.67 billion rupees reported for the same quarter in 2025.

The cost of sales for the nine-month period was 2.59 billion rupees, down from 6.66 billion rupees the previous year. However, the cost of sales for the quarter ending June 30, 2026, remained high at 1.62 billion rupees, indicating persistent financial strain.

Gross profit for the nine months was recorded at 71.71 million rupees, a sharp fall from the 1.19 billion rupees reported in the corresponding period of the previous year. The quarterly gross profit also saw a marked decrease, dropping to 14.87 million rupees from 686.02 million rupees a year earlier.

Operating losses for the nine months reached 36.03 million rupees, a stark contrast to the operating profit of 999.17 million rupees in the previous year. The company also reported a financial charge of 347.47 million rupees for the nine-month period in 2026, compared to 398.88 million rupees in 2025.

According to information available from the Pakistan Stock Exchange (PSX), Baba Farid Sugar Mills recorded a loss before income tax of 417.56 million rupees for the nine-month period ended June 30, 2026, a significant reversal from the profit of 503.46 million rupees reported in the same period last year. For the quarter ending June 30, 2026, the loss before income tax was 235.35 million rupees, compared to a profit of 446.24 million rupees reported in the corresponding quarter of 2025.

The company's financial position as of June 30, 2026, showed total assets valued at 11.95 billion rupees, an increase from 6.51 billion rupees recorded on September 30, 2025. Current assets soared to 6.75 billion rupees from 1.25 billion rupees, driven by a substantial rise in stock in trade.

Despite the increase in assets, Baba Farid Sugar Mills reported accumulated losses of 2.51 billion rupees as of June 30, 2026, worsening from 2.16 billion rupees in September 2025. Additionally, short-term borrowings surged to 5.01 billion rupees from 104.77 million rupees, reflecting increased financial leverage.

The company's cash flow from operating activities recorded a significant net cash outflow of 4.64 billion rupees for the nine months ending June 30, 2026, in contrast to a net cash inflow of 1.44 billion rupees in the previous year. However, financing activities generated a positive cash flow of 4.98 billion rupees, highlighting efforts to manage liquidity through increased borrowings.

Baba Farid Sugar Mills Limited is categorized under the sugar and allied industries sector. The company did not declare any dividends, bonus shares, or other corporate actions for the reported period. The results reflect the challenging economic conditions and market dynamics faced by the company in the current financial year.