Karachi: Shahmurad Sugar Mills Limited released its third quarterly results for the period ending June 30, 2026, revealing a decline in profits despite an increase in production. The company's un-audited financial statements indicated changes in both production levels and financial performance compared to the previous year.

For the nine-month period from October 1, 2025, to June 30, 2026, Shahmurad Sugar Mills reported a profit of Rs. 515.81 million, a decrease from Rs. 652.23 million in the same period of the previous year, marking a significant move. Earnings per share also dropped to Rs. 24.42 from Rs. 30.88. Sales revenue reached Rs. 15.20 billion, down from Rs. 17.00 billion, representing a big move. The cost of sales decreased to Rs. 13.49 billion from Rs. 15.12 billion.

Production data showed that sugarcane crushed increased to 503,232 metric tons from 471,495 metric tons, while sugar produced rose to 54,953 metric tons from 47,953 metric tons. The sugar recovery percentage also improved to 10.92% from 10.20%, indicating enhanced efficiency. Molasses production increased to 25,403 metric tons from 23,470 metric tons, whereas ethanol production slightly decreased to 45,228 metric tons from 45,693 metric tons.

According to information available from the Pakistan Stock Exchange (PSX), Shahmurad Sugar Mills' gross profit for the period was Rs. 1.70 billion compared to Rs. 1.89 billion in the previous year. Distribution costs decreased to Rs. 109.08 million from Rs. 148.76 million, and administrative expenses increased to Rs. 369.24 million from Rs. 359.68 million. Other income, inclusive of loss from associates, was Rs. 227.60 million, down from Rs. 442.92 million, indicating a very large or significant move.

The financial position as of June 30, 2026, outlined total assets of Rs. 26.68 billion, up from Rs. 22.82 billion as of September 2025. Non-current assets amounted to Rs. 10.93 billion, while current assets increased to Rs. 15.74 billion. The company's equity and liabilities showed issued, subscribed and paid-up capital remaining constant at Rs. 211.19 million, with unappropriated profit rising to Rs. 8.73 billion.

Shahmurad Sugar Mills' financial results reflect a complex interplay of increased production against a backdrop of declining profits and revenue, highlighting the challenges faced in the current market environment. The company's strategic response to these financial dynamics will be crucial in navigating the coming months.