Karachi: Habib Sugar Mills Limited has released its unaudited condensed interim financial statements for the half year ending March 31, 2026, reporting a pre-tax profit of Rs. 1,588 million, an increase from Rs. 1,277 million in the previous year. The company's profit after taxation stood at Rs. 923 million, compared to Rs. 667 million in the same period last year, reflecting a big move in profitability.

According to information available from the Pakistan Stock Exchange (PSX), the company's financial performance remained robust despite external challenges, including the Gulf War which began on February 28, 2026. The conflict has led to increased oil prices and disrupted sea trade routes, impacting global and local economies.

The sugar division of Habib Sugar Mills reported an operating profit of Rs. 928 million, with a notable increase in sugar production to 106,631 M. Tons from 83,198 M. Tons in the previous season. This improvement was attributed to a longer crushing season and improved sucrose recovery rates. Meanwhile, the Federal Government's push towards deregulating the sugar industry is seen as a potential boon for the sector, allowing for market-driven pricing and export opportunities.

In the distillery division, ethanol production rose to 13,015 M. Tons, but operating profit saw a slight decline to Rs. 156 million. The textile division faced challenges, reporting a loss of Rs. 17 million due to reduced production and increased costs.

The ongoing Gulf conflict has resulted in an unrealized loss of Rs. 1,285 million on the company's long-term strategic investments, following a significant drop in the PSX-100 Index. The board of directors acknowledged the support of stakeholders amid these uncertainties and expressed concerns over the potential prolonged impact on business operations in Pakistan.

The Pakistan Sugar Mills Association has urged the government to permit sugar exports to manage the country's surplus production of approximately one million M. Tons. The local sugar industry remains a critical agro-based sector, second only to textiles in Pakistan.