Lahore: Shahtaj Sugar Mills Limited has released its un-audited condensed interim financial statements for the nine-month period ending June 30, 2026, evidencing a mixed performance with notable operational improvements amid financial hurdles. The report, dated July 30, 2026, highlights both significant production gains and financial difficulties faced by the company.

During the current crushing season, which spanned from November 15, 2025, to March 11, 2026, the company crushed 851,690 metric tons of sugarcane, a substantial increase from the 591,293 metric tons processed in the previous year. This increase, attributed to better sugarcane availability and improved operational efficiencies, resulted in the production of 84,627 metric tons of sugar, marking a very large or significant move of 57.65% from last year’s production figure of 53,681 metric tons. The production of molasses also saw growth, rising to 37,710 metric tons from 27,419 metric tons.

Despite these operational successes, the company's financial performance was challenging. The turnover for the period was reported at Rs. 6,615.807 million, a decline from Rs. 7,078.156 million recorded in the corresponding period of the previous year. The cost of sales, however, decreased to Rs. 5,564.629 million from Rs. 6,336.019 million, resulting in a gross profit of Rs. 1,051.178 million, a substantial improvement from last year's Rs. 742.137 million.

However, the company recorded a net loss of Rs. 93.475 million this period, contrasting with a net profit of Rs. 9.545 million in the same period last year. This loss was largely due to a significant decline in sugar prices, especially during the third quarter of the financial year. Finance costs rose to Rs. 641.941 million from Rs. 276.254 million, primarily due to increased short-term borrowings and costs associated with the cogeneration power plant.

According to information available from the Pakistan Stock Exchange (PSX), the company's diversification strategy, which included the commencement of commercial operations at its cogeneration power plant, positively contributed to its operational performance. The plant began supplying electricity to the National Grid during the period under review.

The financial challenges were compounded by the absence of a government-announced support price for sugarcane, leading to an increase in the average procurement cost to Rs. 442 per 40 kg from Rs. 423 per 40 kg in the previous year. Additionally, the company reported a loss per share of Rs. 7.78, compared to earnings per share of Rs. 0.79 in the corresponding period last year.

As of June 30, 2026, the company's total assets amounted to Rs. 13,653.933 million, up from Rs. 8,393.371 million as of September 30, 2025. This increase reflects enhanced operational capacity and strategic investments, despite ongoing financial pressures.

Shahtaj Sugar Mills Limited, categorized under the Consumer Staples sector, continues to navigate a complex landscape marked by operational advancements and financial constraints, as it positions itself for future growth and stability.