Mehran Sugar Mills Limited ('Mehran Sugar' or 'the Company') is a public limited company incorporated in December, 1965. The Company is listed on Pakistan Stock Exchange.

The company commenced operations in 1968 with an initial cane crushing capacity of 1,500 TCD. Over time, it has significantly enhanced its operational scale, expanding capacity to 12,500 TCD through strategic Balancing, Modernization, and Replacement (BMR) initiatives. In addition to its core sugar business, the company has pursued diversification through strategic joint ventures. It has established an ethanol production facility in partnership with United Ethanol Industries, manufacturing both food-grade and industrial ethanol. Furthermore, the company has collaborated with Mehran Energy to develop a bagasse-based power generation plant, contributing to its energy integration strategy. The company has also broadened its footprint into the FMCG and energy sectors through its joint ventures with UniFoods Industries and Mehran Energy, respectively, thereby strengthening its overall business portfolio and revenue streams.

The Company is a leading producer of sugar and its by-products. The mill is situated in District Tando Allahyar. Over the years, the Company managed to increase its crushing capacity to 12,500 TCD through capacity enhancement initiatives. Mehran Sugar entered in strategic partnership with other sugar companies in 2004 to establish a jointly operated distillery under the banner ‘Unicol Limited’ which has ethanol production capacity of 200,000 liters/day. In terms of production performance. Mehran recorded sugar production of 72,643 Tons during the fiscal year MY25. This marks an decrease of ~25.4% compared to the 97,384 tons produced in MY24, demonstrating a steady improvement in operational efficiency and output. The mill’s capacity utilization remained at ~55.2% during MY25. Additionally, the sugar recovery rate, which measures the amount of sugar extracted from the sugar cane stood at ~10.2%. 

Majority shareholding rests with individuals of Hasham Family (~75%) (‘Hasham Group’). Shareholding is divided among families of three brothers, Mr. M. Kasim Hasham (~16%) and Mr. Khurram Kasim (~11%), Mr. M. Ebrahim Hasham (~14%) and Mr. Ahmed Ebrahim Hasham (11%), and Mr. M. Hussain Hasham (15%). The remaining shareholding belongs to general public and other corporations.

The company's controlling interests vests with one group and each family within the group holds a defined share. The ownership of the Company is seen as stable.

The company demonstrates strong business acumen, supported by the strategic vision of the Hasham family, which has consistently identified and capitalized on opportunities while effectively navigating industry challenges. The sponsors have undertaken targeted BMR initiatives to enhance production capacity and improve product quality, while also pursuing diversification to reduce reliance on the cyclicality of the sugar sector. Additionally, the group has cultivated long-standing relationships with key stakeholders, including customers, suppliers, and financial institutions. This has enabled the company to sustain operational stability, while reinforcing its market reputation and brand positioning.

The financial strength of the sponsoring family remains strong, as the sponsors have prominient business ventures in operations aside from the Mehran Sugar Mills Limited. The sponsors have shown commitment of support in time of need, 

The Board of Directors comprises of seven individuals, which include two executive directors, three non-executive directors, and two independent Directors. The board has a balanced mix of skills, experience, and diversity, and oversees the strategic direction and performance of the company.

Sponsoring family has a strong presence on the Board. However, members have significant experience in the sugar industry which is balanced by an adequate mix of business, finance, and legal experts. Mr. Mohammed Hussain Hasham has Bachelor Degree in Business from Chapman University, California USA. He has more than 48 years of practical experience in sugar industry.

In order to maintain effective oversight, the Board of Directors have formed two committees, namely, the Audit Committee and the Human Resource and Remuneration Committee. During MY24, four meetings of the Audit Committee and two meetings of the Human Resources and Remuneration Committee were conducted. Board election was also held during the aforementioned year.

The external auditors of the Company, M/s Grant Thornton Anjum Rahman is a QCR rated firm and in SBP’s panel of auditors with “A ‘category. The auditors has expressed unqualified opinion on the Company's financial statements for the year ended 30th September 2025

The Company is headed by the Chief Executive Officer. The Company’s Chief Financial Officer, Resident Director, and Director Cane report directly to the CEO. Internal Audit, HR & IT are headed by separate managers and they report functionally to CEO and CFO. However, the head of Internal Audit and HR functionally reports to the Board Audit Committee and Board HR & Remuneration Committee and the Company Secretary functionally reports to the Board's Chairman.

Management has a long association with Mehran Sugar, adding the required experience in the sugar industry and their respective fields. Mr. Ahmed Ebrahim Hasham is a Bachelor Arts in Economics and IR from Tufts University, Medford, MA, USA. He has more than 21 years of practical experience in various sectors.

The Company has instituted an Executive Committee comprising all heads of departments. The Committee is headed by the CEO and meets on a monthly basis to review performance and enable short-term decision making.

The Company has instituted an Executive Committee comprising all heads of departments. The Committee is headed by the CEO and meets on a monthly basis to review performance and enable short-term decision making.

The company has outsourced its internal audit function to BPO Resources at Work, ensuring an independent and objective evaluation of its internal controls, risk management, and compliance processes. This outsourcing enhances efficiency, provides specialized expertise, and strengthens the overall governance framework.

Pakistan’s sugar industry stands as the second-largest agro-based sector in the country, comprising approximately 90 mills with an annual crushing capacity of 80-90 million MT. The national sugar crop for MY 2024-25 was estimated at approximately 5.83 million metric tons against domestic consumption of approximately 6.4–6.5 million metric tons, necessitating TCP imports of approximately 0.30 million MT to bridge the supply gap. Looking ahead to Season 2025-26, the national crop is estimated between 6.6–7.2 million metric tons, with early recovery data pointing to sucrose recovery rates trending higher by 0.5–1.0 percentage points year-on-year — a development that could yield incremental sugar output of 5–10% on equivalent cane crushed. However, the larger crop is expected to keep sugarcane and sugar prices under pressure, presenting challenges for the Company as it navigates a long sugar market.

The Company accounted for approximately 0.59% of the country’s total sugar production as of MY25, indicating a relatively modest contribution to the national output. In the broader context of the sugar industry, this reflects a limited market share and a comparatively small operational scale. Consequently, the Company holds a minor position within the industry landscape, with its performance and strategic influence having minimal impact on overall market dynamics.

The primary source of the Company's revenue is derived from the sale of refined sugar. A geographical split of revenue indicates that ~98% is generated from the local market, while the remaining ~2% originates from exports. During MY25, the Company's topline increased by ~23.5%, reporting to PKR 13,573 million compared to PKR 10,989 million in the corresponding period of the previous year, MY24, driven by improved sugar price realizations and a drawdown of accumulated carry-over inventory. 

The Company's margins witnessed an overall improvement as the gross profit margin increased to ~14.8% (MY24: ~8.1%). This incline was primarily driven by a lower cost of production driven by the drawdown of accumulated carryover inventory, which had a direct positive impact on the margins. This translated into an inclined Operating profit margin (~10.3%, up from ~3.7%). Moreover, during MY25, the net profit margin sizably improved to ~16.0% from -7.3%. This is primarily driven by the Company's income from non core operations. The Company reported a net profit of PKR 2,174mln, a significant reversal from the net loss of PKR 799mln in MY24, largely attributable to a sharp reduction in finance costs, as easing monetary policy and disciplined working capital management reduced the Company's borrowing burden.

The company operates in a volatile sugar industry with multiple external risks and uncertainties. However, the Company has maintained a strong investment book, 

The Company’s working capital management has shown signs of operational efficiencies during MY25. Inventory days, averaging 40 days compared to 53 days in MY24, are driven by low levels of finished goods. Trade receivables remain at 11 days on average, underscoring the Company’s efficient receivables collection practices. However, trade payables averaged 8 days, from 4 days in MY24, indicating improved utilization of supplier credit. Resultantly, the Gross Working Capital cycle lengthened to 50 days (MY24: 66 days), resulting in a Net Working Capital cycle of 42 days compared to 62 days in the previous period. During MY25. The short-term trade leverage stood at ~1.6% (MY24: ~10.6%), depicting adequate room for borrowing. 

The Company's coverage indicators reflect an improved performance during MY25, providing comfort in its financial risk profile. The EBITDA-to-Finance Cost ratio has increased to 3.2x (MY24: 0.6x). The Company's FCFO clocked at PKR 1,241mln( MY24: PKR 521mln). Similarly, the FCFO-to-Finance Cost ratio has improved to 2.9x from 0.4x, indicating room in cash flow coverage to pay off financial obligations.  Going forward, coverages are further expected to ease, resulting in lower finance costs. 

The leveraging of Mehran Sugar Mills is sizably declined, currently operating at ~15.2% during MY25, down from ~53.8% in MY24. This is due to the significant decline in the short term borrowings. The Company's equity base stood at 4,768mln (MY24: PKR 2,781mln), hihglighting improved equity base.