Karachi: Habib Sugar Mills Limited has reported a significant increase in its profit for the three quarters ending June 30, 2026, in an unaudited financial statement released on July 29, 2026. The company achieved a profit before tax of Rs. 2.22 billion, a notable rise from Rs. 1.90 billion during the same period last year. This increase of Rs. 321 million reflects a robust performance amidst challenging global conditions.
The company's profit after taxation rose to Rs. 1.34 billion from Rs. 1 billion, marking an increase of Rs. 341 million. Earnings per share also improved to Rs. 9.94 from Rs. 7.41, indicating enhanced shareholder value. However, the total realized gain on the sale of investments decreased significantly to Rs. 200 million from Rs. 792 million, primarily due to the absence of gains from mutual fund units this year.
The sugar division of Habib Sugar Mills showed a strong performance with an operating profit of Rs. 1.22 billion, up from Rs. 1.01 billion. This was achieved despite a challenging environment, with the division crushing 981,838 metric tons of sugarcane, an increase from 839,005 metric tons last year. The average sucrose recovery also improved to 10.86% from 9.92%, resulting in the production of 106,631 metric tons of sugar compared to 83,198 metric tons previously.
In contrast, the distillery division reported a decrease in operating profit to Rs. 366 million from Rs. 483 million, despite an increase in ethanol production from 19,234 metric tons to 21,194 metric tons. The textile division faced challenges, incurring an operating loss of Rs. 56 million due to higher production costs and lower sales volumes.
The ongoing Gulf War, which began on February 28, 2026, has impacted global trade and economic stability, leading to increased oil prices and disruptions in sea routes. The Pakistan Stock Exchange (PSX) was affected, with the PSX-100 Index experiencing a drastic decline. According to information available from the Pakistan Stock Exchange (PSX), Habib Sugar Mills suffered an unrealized loss of Rs. 763 million on its long-term investments in listed companies, a significant shift from a gain of Rs. 2.15 billion last year.
Pakistan ranks among the top ten sugar-producing countries globally, with the sugar industry being the second largest agro-based industry after textiles. Despite producing a surplus of approximately one million metric tons of sugar, the government's decision to reject the Pakistan Sugar Mills Association's request to export sugar reflects concerns over potential domestic price increases.
As of June 30, 2026, Habib Sugar Mills reported total assets of Rs. 24.79 billion, an increase from Rs. 23.50 billion in September 2025. The company's stock-in-trade also surged to Rs. 8.87 billion from Rs. 2.06 billion, indicating a substantial inventory buildup.
Overall, Habib Sugar Mills' financial performance remained satisfactory, driven by the sugar division's robust results, despite the distillery and textile divisions' challenges. The company's strategic management and resilience in navigating global uncertainties underscore its ongoing commitment to growth and stability.