Karachi: Sindh Abadgar’s Sugar Mills Limited has released its un-audited condensed interim financial statements for the half year ending March 31, 2026, revealing a decline in profitability despite a notable increase in production.
The company reported a reduction in sales to Rs. 1,289.17 million, down from Rs. 1,798.99 million during the same period last year, marking a very large decline of 28.3%. This decrease was primarily due to lower sales volumes, as a portion of the season’s production remains in inventory. Gross profit also saw a significant drop to Rs. 133.61 million from Rs. 286.59 million, with the gross profit margin decreasing to 10.36% from 15.93%.
Sindh Abadgar’s operational results for the period indicate that the company crushed 433,330 tons of sugarcane, compared to 405,205 tons in the previous year, reflecting an increase of 6.9%. The improvement in capacity utilization from 53% to 59% contributed to this rise. Sugar recovery improved to 11.11% from 9.98%, resulting in sugar production of 48,208 tons, up 19.2% from last year’s 40,445 tons. Molasses production also increased to 20,300 tons from 18,800 tons, with a slight improvement in molasses recovery.
According to information available from the Pakistan Stock Exchange (PSX), the company’s operating profit before taxation was Rs. 118.94 million, down from Rs. 257.49 million in the same period last year. Profit after taxation plummeted to Rs. 0.82 million from Rs. 82.16 million, leading to earnings per share of Rs. 0.08 compared to Rs. 7.88. The decline in profitability is attributed to reduced sales volumes and rising costs, despite operational efficiencies and improved recovery rates.
The industry outlook indicates that the country produced approximately 7.6 million metric tons of sugar, surpassing the initial target of 6.6 million metric tons and the previous year’s production of 5.7 million metric tons. This represents a very large growth of 33% over the previous crushing season. However, the industry faces potential challenges due to historically high sugar stocks, which could pressure domestic prices and liquidity.
The Board emphasized the need for coordinated policy measures, including timely export permissions and rational taxation, to ensure sustainable operations. The company plans to focus on maintaining cane procurement quality, plant efficiency, and cost discipline to safeguard shareholder value amidst the challenging market conditions.