Lahore: Jauharabad Sugar Mills Limited (JSML) has reported a substantial decline in profit for the nine-month period ending June 30, 2026, as outlined in its unaudited financial statements. The company's Profit After Tax (PAT) saw a decline of 61.43%, amounting to Rs. 73.26 million, primarily due to depressed domestic sugar prices and the absence of sugar exports. This information was disclosed in the company's third-quarter report dated July 30, 2026.
During the last quarter, sugar prices faced downward pressure due to stringent government monitoring and an excess supply of sugar stocks. This resulted in a challenging market environment for JSML, impacting its financial performance significantly. For the current crushing season of 2026/27, sugarcane production is anticipated to remain stable at around 90 million metric tons, with sugar production projected at approximately 8.2 million metric tons. The government is expected to allow the export of 700,000 metric tons of surplus sugar by the end of the financial year, which could help in maintaining a balanced domestic supply-demand position.
JSML's operational performance demonstrated resilience despite the adverse market conditions. The company processed 865,689 metric tons of sugarcane, a notable increase from the 623,733 metric tons processed in the previous season. The company achieved a commendable sugar recovery rate of 10.07%. These results reflect the effectiveness of JSML’s procurement practices, milling operations, and the quality of sugarcane supplied by its growers.
The company's net sales for the period under review were Rs. 7.38 billion, a decline of 11% compared to Rs. 8.29 billion in the corresponding period. Gross profit also declined by 14% to Rs. 934 million from Rs. 1.09 billion. Despite these challenges, JSML's financial management enabled a reduction in finance costs by Rs. 10 million, even as the company increased its short-term borrowings to finance 39% higher sugarcane procurement.
According to information available from the Pakistan Stock Exchange (PSX), the decline in revenue and profit is attributed to the depressed sugar prices resulting from surplus sugar stocks and stringent government price monitoring. The company remains optimistic about a potential recovery supported by anticipated regulatory approvals for sugar exports and improved domestic supply-demand dynamics.
JSML's total assets as of June 30, 2026, stood at Rs. 21.00 billion, up from Rs. 15.36 billion in September 2025. The increase in assets reflects the company's strategic investments and efforts to ensure operational efficiency in a competitive market.
The management of JSML remains committed to enhancing operational efficiency and financial performance. The company is closely monitoring market conditions and macroeconomic developments, expressing confidence that favorable regulatory changes and a balanced domestic market will enhance long-term value for stakeholders.