Karachi: Shahtaj Sugar Mills Limited announced its financial results for the fourth quarter of 2025, concluding on December 31. The company’s board of directors, in a meeting held on January 29, 2026, decided not to recommend any cash dividend for the period under review. This decision was made as the company navigates changing financial dynamics compared to the previous year.
The financial data released shows a significant decrease in revenue from contracts with customers, which fell to 1.68 billion rupees from 2.29 billion rupees in the same period last year. This decline is classified as a very large or significant move, indicating substantial changes in the company’s sales landscape. Despite the drop in revenue, the company managed to post a gross profit of 282.02 million rupees, up from 185.97 million rupees the previous year.
Operating expenses saw a moderate rise, with administrative costs increasing to 125.74 million rupees from 95.36 million rupees, and other operating expenses decreasing slightly to 2.27 million rupees. The overall profit from operations improved to 151.48 million rupees from 97.43 million rupees.
The finance cost more than doubled, reaching 122.06 million rupees compared to 61.80 million rupees last year, impacting the profitability before taxation. The profit before income taxation stood at 16.36 million rupees, up from 6.84 million rupees the previous year, with an income tax expense of 7.71 million rupees. As a result, the profit for the period increased to 8.65 million rupees from 6.84 million rupees, reflecting a modest improvement in earnings per share to 0.72 rupees from 0.57 rupees.
According to information available from the Pakistan Stock Exchange (PSX), Shahtaj Sugar Mills’ financial position revealed total assets of 10.47 billion rupees, a growth from 8.39 billion rupees as recorded at the end of September 2025. The company’s non-current assets slightly increased to 6.71 billion rupees, while current assets showed a substantial rise to 3.76 billion rupees from 1.76 billion rupees.
The company’s liabilities also saw significant movements. Non-current liabilities marginally decreased to 2.79 billion rupees from 2.81 billion rupees, while current liabilities almost doubled to 4.33 billion rupees from 2.24 billion rupees, pointing towards increased short-term financial obligations.
For the quarter, Shahtaj Sugar Mills reported a net cash outflow of 1.30 billion rupees from operating activities, contrasting with a net inflow of 269.54 million rupees from financing activities primarily due to increased short-term borrowings. Despite the challenges, the company ended the quarter with an increase in cash and cash equivalents, totaling 116.70 million rupees as of December 31, 2025.
The financial report underscores the ongoing shifts within Shahtaj Sugar Mills’ operational and financial frameworks, reflecting broader market conditions and internal strategic decisions. As the company moves forward, these results will likely influence its strategic approach in the coming quarters.