Karachi: Khairpur Sugar Mills Limited has reported a significant decrease in its net sales for the nine months ended June 30, 2026, according to the company's financial statements released on July 30, 2026. The net sales stood at Rs. 5,117.592 million, marking a decline of 41.4% from Rs. 8,738.843 million in the corresponding period of the previous year.
Despite this decline, the company managed to achieve a gross profit of Rs. 858.678 million, compared to Rs. 821.715 million in the same period last year. The gross margin showed a big move improvement, rising to 16.8% from 9.4%, indicating effective cost management and an optimized product mix.
Operating profit also saw an increase, reaching Rs. 510.973 million, up from Rs. 499.071 million in the prior year, despite an increase in administrative expenses to Rs. 332.192 million from Rs. 291.044 million. Financial charges rose to Rs. 306.257 million due to higher short-term borrowing levels necessary for seasonal stock build-up.
Profit before taxation remained stable at Rs. 215.332 million, nearly identical to the Rs. 215.675 million recorded in the previous period. However, a lower tax charge of Rs. 70.488 million resulted in a 42.05% increase in profit after taxation, which reached Rs. 144.844 million. Consequently, earnings per share improved to Rs. 9.05 from Rs. 6.37.
According to information available from the Pakistan Stock Exchange (PSX), for the third quarter ended June 30, 2026, Khairpur Sugar Mills Limited posted net sales of Rs. 1,047.272 million. The quarter's profit before taxation was recorded at Rs. 22.729 million, with a profit after taxation of Rs. 22.722 million, compared to Rs. 19.825 million in the corresponding quarter of the previous year.
The company's operational review highlighted a decrease in sugarcane crushing to 588,196 metric tons from 740,684 metric tons in the previous season. Sugar production also declined to 59,461 metric tons from 71,476 metric tons, while molasses production increased to 41,855 metric tons from 37,346 metric tons.
Khairpur Sugar Mills' financial position as of June 30, 2026, revealed an increase in total assets to Rs. 13,055.016 million, up from Rs. 10,678.167 million as of September 30, 2025. This was primarily due to an increase in stock-in-trade, valued at Rs. 4,883.177 million, financed through short-term borrowings that rose to Rs. 4,829.549 million.
Shareholder's equity improved to Rs. 5,147.506 million from Rs. 5,002.662 million, driven by profits earned during the period. The company's cash and bank balances stood at Rs. 67.620 million as of June 30, 2026.
In terms of environmental, social, and governance (ESG) initiatives, Khairpur Sugar Mills Limited continues to focus on environmental sustainability. The company's wastewater treatment plant operates with a capacity of 3,000 cubic meters per day, repurposing treated effluent for agricultural use, in compliance with the Sindh Environmental Protection Act, 2013.