Shahtaj Sugar Mills Declares 12.5% Cash Dividend Amid Revenue Decline


Karachi: Shahtaj Sugar Mills Limited announced its financial results for the fiscal year ending September 30, 2025, revealing a challenging year marked by a decline in revenue and a moderate move in earnings per share. The Board of Directors, in a meeting held on December 31, 2025, recommended a cash dividend of Rs.1.25 per share, translating to a 12.5% payout to its shareholders.



The company reported a decrease in revenue from contracts with customers, amounting to Rs. 8.65 billion compared to Rs. 8.82 billion in the previous year. Despite the reduction in revenue, Shahtaj Sugar Mills managed a profit for the year of Rs. 32.68 million, slightly higher than the last year’s profit of Rs. 32.14 million. This resulted in earnings per share of Rs. 2.72, reflecting a moderate move from the previous year’s Rs. 2.68.



According to information available from the Pakistan Stock Exchange (PSX), the cost of revenue decreased marginally to Rs. 7.79 billion from Rs. 7.89 billion. The company’s gross profit also showed a decline, reaching Rs. 859.39 million from Rs. 927.43 million in the preceding year.



The financial statement highlighted a significant reduction in finance costs, which fell to Rs. 373.51 million from Rs. 644.72 million. This, combined with an increase in other income to Rs. 82.92 million, contributed to an improvement in profit before income tax and levy, which stood at Rs. 138.67 million compared to a loss of Rs. 63.83 million in 2024.



Shahtaj Sugar Mills’ balance sheet showed a total asset value of Rs. 8.39 billion, slightly down from Rs. 8.53 billion the previous year. Non-current assets increased to Rs. 6.64 billion, while current assets declined to Rs. 1.76 billion. Total equity and liabilities were balanced at Rs. 8.39 billion.



The company also reported cash flows from operating activities at Rs. 649.33 million, a significant turnaround from a negative cash flow of Rs. 638.57 million the prior year. This improvement was due to increased cash generation from operations, despite the higher finance costs and taxes paid.



In compliance with regulatory requirements, Shahtaj Sugar Mills will transmit its annual report for the year ended September 30, 2025, through PUCARS within the specified time frame.