Karachi: Sakrand Sugar Mills Limited has reported significant growth in profitability for the six months ending March 31, 2026, despite facing operational challenges due to a delayed sugarcane crushing season. The company's financial performance, outlined in its unaudited condensed interim financial statements, reveals a sharp increase in profit after taxation, alongside improvements in gross profit and earnings per share.

The sugarcane crushing season for 2025-26, which began on December 1, 2025, was notably shorter than the previous year, with operations lasting 78 days compared to 85 days in 2024-25. The delay, particularly pronounced in the Sindh region, was attributed to disputes over cane procurement rates and government policies on sugar exports. This led to a reduction in sugarcane crushed, with only 199,765 metric tons processed this season compared to 289,399 metric tons in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the delayed start resulted in lower net sales, which stood at Rs. 1,736.13 million, down from Rs. 3,550.90 million the previous year. However, the company implemented strategic cost management and procurement practices, which significantly improved the recovery ratio for sugar from 9.819% to 10.702%, classified as a very large or significant move. These measures enabled the company to enhance its contribution margin, leading to a gross profit of Rs. 417.33 million, compared to Rs. 244.80 million in the prior year.

Profit before taxation rose to Rs. 342.02 million from Rs. 161.82 million, while profit after taxation more than doubled to Rs. 283.87 million, up from Rs. 119.10 million in the corresponding period last year. Earnings per share also saw a noteworthy increase, climbing to Rs. 6.36 from Rs. 2.67.

Despite the challenges of the delayed season, the outlook for the sugar industry in Pakistan, particularly in Sindh, remains cautiously optimistic. The company's management remains focused on efficient cane procurement, prudent cost management, and operational efficiencies. The recent government decision to deregulate the sugar industry is anticipated to foster market-driven pricing, thereby enhancing operational flexibility for mills. The management is hopeful that continued application of these strategies will further bolster the company's performance in the future.