Karachi: Shahtaj Sugar Mills Limited has announced a significant turnaround in its financial performance for the six-month period ending March 31, 2026, marked by increased profitability and strides in operational efficiency. According to the Directors’ Report released on May 29, 2026, the Company recorded a net profit of Rs. 201.981 million, a marked improvement from a net loss of Rs. 39.332 million in the same period of the previous year.
The sugar crushing season for the year began on November 15, 2025, extending until March 11, 2026, resulting in a 117-day operational period compared to 97 days in the previous season. This extension was in compliance with government notifications on operational timelines. During this period, the Company crushed 851,690 metric tons of sugarcane, reflecting a 44% increase from the 591,293 metric tons crushed last year, owing to timely commencement, improved cane availability, and enhanced operational efficiency.
Sugar production reached 84,627 metric tons, up from 53,681 metric tons in the prior year, marking a 58% increase. Molasses production also rose to 36,520 metric tons from 27,419 metric tons last year. Sugar recovery improved to 9.93% from 9.10%, indicating better-quality sugarcane and improved extraction processes, though molasses recovery declined slightly to 4.29% from 4.64%.
The operational improvements and increased production capacity contributed to a turnover of Rs. 4,713.575 million, down slightly from Rs. 4,956.442 million the previous year. However, the cost of sales decreased significantly to Rs. 3,757.853 million from Rs. 4,521.168 million, resulting in a gross profit of Rs. 955.722 million, more than double the Rs. 435.274 million recorded in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the operational efficiencies and diversification efforts have played a pivotal role in enhancing the company’s financial performance. The earnings per share rose to Rs. 16.82 from a loss per share of Rs. 3.27 in the same period last year.
A key milestone for the Company during this period was the successful commissioning and operation of a 32 MW bagasse-based co-generation power plant, which achieved its Commercial Operation Date (COD) on October 10, 2025. The plant, operating under a 30-year Energy Purchase Agreement with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), has commenced supplying electricity to the National Grid. This strategic development is expected to positively impact the Company’s profitability by converting bagasse, a sugar manufacturing by-product, into energy.
The average sugarcane procurement cost rose to Rs. 442 per 40 kg from Rs. 423 per 40 kg in the same period last year, despite the government not setting a support price this season. Finance costs increased to Rs. 354.866 million from Rs. 177.522 million, attributed to financial charges related to the power plant.
The Directors of Shahtaj Sugar Mills Limited expressed their appreciation for the dedication of the Company’s staff and shareholders’ support, highlighting the strategic importance of the power project in aligning with the Company’s long-term goals of operational diversification and sustainability.