Lahore: JDW Sugar Mills Limited has announced a significant increase in net profits for the nine-month period ending June 30, 2026, amid fluctuating sugar prices and rising finance costs. According to a report released on July 30, 2026, the company declared a net profit after tax amounting to Rs. 6,814 million, more than double the Rs. 3,085 million reported during the same period last year. This has led to an increase in earnings per share from Rs. 53 to Rs. 118.
The company's directors attribute this profitability to sales of carryover sugar stocks at favorable prices, despite a slight decrease in gross turnover. Gross profit margins have risen from 12% to 16%. Other income saw a significant rise from Rs. 1,912 million to Rs. 4,681 million, driven by dividend income from its wholly-owned subsidiary, Deharki Sugar Mills (Pvt.) Limited, and gains in sugarcane crop valuation at harvest.
According to information available from the Pakistan Stock Exchange (PSX), the overall market environment has been challenging for sugar producers, yet JDW Sugar Mills has leveraged its strategic initiatives to maintain profitability. The finance cost has risen by Rs. 623 million, attributed to the higher utilization of working capital loans and a 1% increase in the State Bank of Pakistan's policy rate on April 27, 2026.
Deharki Sugar Mills (Pvt.) Limited reported a decrease in profit after tax to Rs. 244 million, down from Rs. 286 million in the previous year, due to reduced sugar sales and increased finance costs.
JDW's balance sheet has expanded from Rs. 78 billion to Rs. 129 billion, and its accumulated reserves stand at Rs. 34 billion, showcasing a strong financial position. The company has prioritized timely payments to sugarcane growers, facilitated through banking channels and a partnership with Jazz Cash-Mobilink for efficient transactions. This initiative has been well-received by the growers.
In addition to its financial performance, JDW Sugar Mills is launching the "Tareen Institute of Computer Education and Resources" (TICER) in District Lodhran, aiming to provide quality IT education to 2,500 students in South Punjab. The project aligns with JDW's commitment to community development and is set to be operational by September 2026.
Despite the current profitability, JDW anticipates challenges for the financial year 2025-26 due to high sugarcane procurement costs and a surplus sugar stock of 1.2 million tons in the country, valued at approximately USD 550 million. The company urges the Federal Government to consider exporting the surplus to capitalize on this potential revenue. The upcoming crushing season is expected to yield a record sugar production exceeding Rs. 8.0 million tons, which could further impact market dynamics.
JDW remains focused on reducing its finance costs through efficient business operations and managing working capital needs.