Lahore: Shakarganj Limited has disclosed substantial financial losses for the fiscal year ending September 30, 2025, as detailed in its financial statements released on January 13, 2026. The company, which operates within the designated market category of the Pakistan Stock Exchange (PSX), has faced considerable financial challenges, prompting a detailed review of its financial health and operational hurdles.
According to the company’s latest financial statement, Shakarganj Limited reported a loss after income tax amounting to Rs. 2,592.804 million. This loss has exacerbated the company’s accumulated deficit, which now stands at Rs. 6,865.449 million. Furthermore, the company’s auditors have issued an adverse opinion, highlighting significant concerns regarding the company’s financial practices and sustainability.
The auditors’ report points to several critical issues, including the sustained losses and an adverse current ratio. Notably, Shakarganj’s textile segment has remained closed for the past few years, contributing to the financial strain. Additionally, the company faces overdue statutory obligations and legal obstacles delaying the disposal of certain assets, which are crucial for the necessary upgrades to its textile and sugar divisions in Jhang.
The auditors also identified unverified transactions related to a sugar stock of 520 metric tons, valued at Rs. 62.134 million, which was meant for export to Afghanistan but remained in storage due to political restrictions. An advance of Rs. 88.937 million received against this export also remains unadjusted, further complicating the financial picture.
In response to these challenges, Shakarganj Limited has prepared its financial statements as a going concern, relying on a turnaround plan. The company plans to liquidate surplus assets to address its liabilities and improve its financial standing in subsequent periods.
Despite the financial challenges, the company has maintained its issued, subscribed, and paid-up share capital at Rs. 1,250 million, with capital reserves amounting to Rs. 12,942.798 million. However, the revenue from contracts with customers decreased significantly, registering Rs. 5,515.540 million, down from Rs. 8,831.779 million in the previous year, reflecting a very large or significant move in financial performance.
The company’s financial difficulties are compounded by operational expenses, which include administrative and general expenses of Rs. 366.001 million and a finance cost of Rs. 300.383 million. Additionally, the share of loss from equity accounted investee stood at Rs. 513.782 million, further impacting the bottom line.
Shakarganj Limited’s Annual General Meeting is scheduled for February 9, 2026, at its Management House on Toba Road, Jhang, with provisions for virtual attendance. The company has announced the closure of its share transfer books from February 2 to February 9, 2026, to facilitate this meeting.
According to information available from the Pakistan Stock Exchange (PSX), Shakarganj Limited’s financial performance reflects ongoing operational challenges and financial instability. The company is under pressure to implement its turnaround strategy effectively to regain financial stability and investor confidence.