Karachi: Sanghar Sugar Mills Limited has reported a significant financial turnaround for the fiscal year ending September 30, 2025, as detailed in its financial statements approved during a Board of Directors meeting on December 31, 2025. The company, which operates within the designated market category of sugar manufacturing, recorded a profit of Rs. 142.69 million, a substantial shift from the loss of Rs. 139.66 million reported in the previous year.
The Board has recommended no cash dividend, bonus shares, right shares, or any other entitlements for the fiscal year. According to information available from the Pakistan Stock Exchange (PSX), the company’s sales surged to Rs. 6.74 billion from Rs. 5.42 billion in 2024, marking a very large or significant move of over 24%. This increase in sales contributed to a gross profit of Rs. 639.74 million, compared to Rs. 339.33 million the previous year.
Despite the increased revenue, the company continues to face legal uncertainties. The statutory auditor highlighted the non-provision of Rs. 391.67 million related to the cane purchase price difference for the 2017-18 season, a matter pending in the Honourable Supreme Court of Pakistan. The auditor emphasized uncertainty regarding the outcome of this legal issue but did not qualify their opinion on this basis.
The company showed improvements in its financial position with total assets rising to Rs. 6.02 billion from Rs. 5.31 billion in the previous fiscal year. A notable increase was observed in the surplus on revaluation of property, plant, and equipment, which rose to Rs. 2.61 billion from Rs. 1.60 billion, contributing to the total comprehensive income of Rs. 1.21 billion for 2025.
The Annual General Meeting (AGM) is scheduled for January 28, 2026, at the PSX Auditorium in Karachi. Share transfer books will be closed from January 21 to January 28, 2026. The annual report will be made available through PUCARS at least 21 days before the AGM.
The company’s cash flow from operating activities saw a net inflow of Rs. 934.51 million, a stark contrast to the outflow of Rs. 937.35 million in the previous year, reflecting improved operational efficiency and cash management. Meanwhile, cash and cash equivalents at the end of the year improved to Rs. 107.04 million from a negative Rs. 49.54 million, further underscoring the company’s recovery in financial health.
Despite the positive financial performance, Sanghar Sugar Mills remains cautious due to the ongoing legal proceedings, which could impact future financial outcomes.