Transmission of the Quarterly Report for the period ended December 31, 2025

Company Information 2

Directors' Report 3

Condensed Interim Statement of Financial Position 5

Condensed Interim Statement of Profit or Loss 6

Condensed Interim Statement of Comprehensive Income 7

Condensed Interim Statement of Changes in Equity 8

Condensed Interim Statement of Cash Flows 9

Notes to the Condensed Interim Financial Statements 10

19

1

Board of Directors Asghar D. Habib Chairman

Murtaza Habib Hasnain Habib Ghias Uddin Khan Asif Parekh

Muhammad Salman Husain Chawala Tyaba Muslim Habib

Khursheed A. Jamal Chief Executive

Audit Committee Ghias Uddin Khan Chairman

Tyaba Muslim Habib Member

Asif Parekh Member

Human Resource & Tyaba Muslim Habib Chairperson

Remuneration Committee Hasnain Habib Member

Khursheed A. Jamal Member

Chief Financial Officer Amir Bashir Ahmed

Company Secretary Imran Amin Virani

Registered Office 3rd Floor, Imperial Court, Dr. Ziauddin Ahmed Road, Karachi-75530

Phones : (+92-21) 35680036 - 5 Lines

Fax : (+92-21) 35684086

www : habibsugar.com

E-mail : sugar@habib.com

Mills Sugar & Distillery Division

Nawabshah District Shaheed Benazirabad Phones : (+92-244) 360751 - 5 Lines

Fax : (+92-244) 361314

Textile Division

D-140/B-1 Mangopir Road

S.I.T.E. Karachi-75700

Phones : (+92-21) 32571325, 32572119

Fax : (+92-21) 32572118

Terminal 60/1-B Oil Installation Area Keamari Karachi-75620

Phones : (+92-21) 32852003-4

Fax : (+92-21) 32852005

Bankers Allied Bank Limited Bank AL Habib Limited Bank Al-Falah Limited Faysal Bank Limited

First Women Bank Limited JS Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited MCB Bank Limited

Meezan Bank Limited National Bank of Pakistan United Bank Limited

Statutory Auditors Grant Thornton Anjum Rahman

Chartered Accountants

Cost Auditors Reanda Haroon Zakaria Aamir Salman Rizwan & Co.

Chartered Accountants

Share Registrar THK Associates (Pvt.) Limited

Plot No. C-32, Jami Commercial Street-2

D.H.A. Phase VII, Karachi.

UAN : (+92-21) 111-000-322

Phone : (+92-21) 35310184

Fax : (+92-21) 35310191

E-mail : sfc@thk.com.pk

2

On behalf of the Board of Directors, we are pleased to present to you the unaudited condensed interim financial statements of the Company for the first quarter ended on December 31, 2025. The Company has earned pre-tax profit of Rs. 616.64 million (2024: Rs. 579.72 million). The financial results of the Company for the first quarter ended December 31, 2025 are summarized below:

The crushing season for 2025-26 commenced on November 30, 2025 and upto December 31, 2025, sugarcane of 228,160 M. Tons was crushed with average sucrose recovery of 10.12% and sugar production of 23,098 M. Tons as compared with sugarcane crushing of 310,437 M. Tons with average sucrose recovery of 9.46% and sugar production of 29,380 M. Tons during the corresponding quarter of the previous year.

The sugar division earned operating profit of Rs. 373.90 million (2024: Rs. 357.77 million). The increase in operating profit was attributed to better selling prices of sugar and improved sucrose recovery, despite lower sales quantum.

The Federal Government has recently constituted a committee for complete de-regulation of the sugar industry in line with structural reforms recommended by the International Monetary Fund (IMF) and we are hopeful for a favorable decision in this regard. As a first step towards de-regulation, the Provincial Governments did not notify minimum support prices of sugarcane for the crushing seasons 2024-25 and 2025-26 leaving sugarcane prices to be determined by market forces. If the sugar sector is completely de-regulated, not only the sugar sector would reap the benefits through open exports and better local prices of sugar but the growers will also get better prices for their cane crop.

The ethanol production during the first quarter ended December 31, 2025 was 4,008 M. Tons (2024: 3,633 M. Tons). The division earned operating profit of Rs.

41.63 million (2024: Rs. 63.29 million).

The liquified carbon dioxide (CO2) unit produced 1,576 M. Tons (2024: 1,156 M. Tons). The contribution of the unit is included in the profit of the division.

The division incurred a loss of Rs. 1.99 million (2024: profit of Rs. 4.03 million). The loss is mainly attributed to decrease in sales volume.

On January 27, 2026, election of Directors was held and Messrs. Asghar D. Habib. Murtaza Habib, Hasnain Habib, Ghias Uddin Khan, Asif Parekh, Muhammad Salman Husain Chawala and Ms. Tyaba Muslim Habib were elected as directors of the company for a period of three years.

The Directors of the Company would like to thank all the staff, shareholders, financial institutions and other stakeholders of the Company for their continued support and cooperation.

On behalf of the Board of Directors

Chief Executive

Director

Karachi: January 27, 2026

4

Unaudited Audited

Note Dec 31, Sept. 30,

Assets 2025 2025

Non-Current Assets (Rupees in thousands)

Authorised

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive

Director

5

Unaudited Unaudited

Note Dec. 31, Dec. 31,

2025 2024

(Rupees in thousands)

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive

Director

Unaudited Unaudited

Dec. 31, Dec. 31,

2025 2024

(Rupees in thousands)

Unrealised Gain / (loss) on re-measurement of equity investments

classified as fair value through other comprehensive income (FVOCI) (290,215) 1,226,784

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive

Director

7

Reserves

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive

Director

8

Note Dec. 31, Dec. 31,

2025 2024

(Rupees in thousands)

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive

Director

1. The Company and its operations

   Habib Sugar Mills Limited is a public limited Company incorporated in Pakistan, on February 08, 1962 with its shares quoted on the Pakistan Stock Exchange Limited. The Company is engaged in the manufacturing and marketing of refined sugar, molasses, ethanol, liquidified carbon dioxide (CO2), household textiles, providing bulk storage facilities and trading of commodities. The registered office of the Company is situated at Imperial Court, 3rd Floor, Dr. Ziauddin Ahmed Road, Karachi.

2. Statement of compliance

   These condensed interim financial statements are unaudited and have been prepared in accordance with the requirements of International Accounting Standard (IAS) - 34, 'Interim Financial Reporting', as applicable in Pakistan and provisions of and directives issued under the Companies Act, 2017 (the Act). In case where requirements differ, the provisions of or directives issued under the Act have been followed.

   These condensed interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the year ended September 30, 2025.

3. Significant accounting policies and disclosures

   The accounting policies and methods of computation followed for the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual financial statements of the Company for the year ended September 30, 2025.

   (Unaudited) (Audited)

   Dec. 31, Sept. 30,

   2025 2025

   (Rupees in thousands)

4. Property, plant and equipment

   1. Operating fixed assets 2,109,448 1,962,107

      Capital work-in-progress - 163,091 2,109,448 2,125,198

   2. Cost of additions to and written down value of deletions from fixed assets during the quarter ended December 31, 2025 were as follows:

      Additions Deletions (Rupees in thousands)

      Plant and machinery
      Sugar	16,034		-
      Furniture, fittings and office equipments Vehicles	5,096 -		-	7
      	21,130			7

      10

5. Long-term investments - at FVOCI

   Note (Unaudited) (Audited) Dec. 31, Sept. 30,

   
   
   

   2025 2025

   (Rupees in thousands)

   Investments in related parties - Quoted 4,571,651 4,989,511

   - Un-Quoted 6,137 6,137 Investments in other companies - Quoted 1,715,655 1,837,273

   5.1 6,293,443 6,832,921

   1. The aggregate cost of these investments, net of impairment is Rs.854.74 (September 30, 2025: Rs. 884.78 ) million.

6. Stock-in-trade

   (Unaudited) (Audited)

   Dec. 31, Sept. 30,

   2025 2025

   (Rupees in thousands)

   Raw materials 1,018,237 442,694

   Work-in-process 233,720 94,910

   Finished goods 2,393,822 1,461,946

   Bagasse 77,405 57,517

   3,723,184 2,057,067

7. Loans and advances - considered good

   Loans - secured

   -8,138

   46,000

   8,018

   Current maturity of long-term loans Executives

   Other Employees

   54,018 8,138

   Advances - unsecured 1,411,234 1,266,368

   Suppliers 1,465,252 1,274,506

8. Short-term investments Government Securities - at amoritised cost

   Units of Mutual Funds - FVOCI 2,108,476 2,051,745

   - FVPL 7,470,564 5,322,364

   9,579,040 7,374,109

   1. The aggregate cost of the units of mutual funds is Rs.9,334.50 (September 30, 2025: Rs.7,227.95) million.

   2. Includes Rs.5,052.50 (2025: Rs.3,460.48 ) kept with wholly owned subsidary of a related party.

      11

      Note			(Unaudited) Dec 31, 2025		(Audited) Sept. 30, 2025
      9.	Cash and bank balances		(Rupees in th		ousands)
      	Cash in hand		21,917		353
      	Balances with banks in:
      	Current accounts		194,815		148,694
      	Treasury call accounts	9.1	1,429,540		2,360,019
      	Term Deposit Receipts	9.2	48,000		48,000
      		9.3	1,672,355		2,556,713
      			1,694,272		2,557,066

      
      
      
9. 1 Profit rates on Treasury call accounts ranged between 8.00% to 9.25% (September 2025: 8.00% to 14.00% ) per annum.

   1. Profit rates on Term Deposit Receipts is 8.00% (September 2025: 8.00% to 13.00%) per annum.

   2. Includes Rs.1,502.45 (September 2025: Rs.2,397.29 ) million kept with Bank AL Habib Limited - a related party.

10. Deferred taxation

- accelerated tax depreciation allowance

(Unaudited) (Audited)

Dec. 31, Sept. 30,

2025 2025

(Rupees in thousands)

12

(Unaudited) (Audited)

Dec. 31, Sept. 30,

2025 2025

(Rupees in thousands)

1. Short-Term Borrowings - secured 970,416 615,497

   The aggregate financing facility available from commercial banks amounted to Rs.17,346 (September 2025: Rs.17,346 million. These financing facilities are secured by way of registered charge against hypothecation of stock-in-trade, stores and spares, assignment of trade debts and other receivables. The rate of mark-up charged during the period was 2.00% to 3.25% (September 2025: 2.00% to 12.50% ) per annum.

2. Contingencies and commitments Contingencies

   There has been no significant change in the Status of contingencies as reported in Note 20 of the audited annual financial statements of the Company for the year ended 30 September, 2025.

   Commitments

   1. The Company has provided counter guarantees to Bank AL Habib Limited, a related party, amounting to Rs.1,100 (September 30, 2025: Rs.1,100) million against agriculture finance facilities to the growers supplying sugarcane to the mills and counter guarantees to other banks amounting to Rs.3,566.56 (September 30, 2025: Rs.3,137.61) million against guarantees issued by banks in favour of third parties on behalf of the Company. These guarantees are secured by way of registered charge against hypothecation of stores and spares, stock-in-trade, assignment of trade debts and other receivables.

      (Unaudited) (Audited)

      Dec 31, Sept. 30,

      Note 2025 2025

      (Rupees in thousands)

   2. Lease rentals payable over next four years under Ijarah agreements with

      First Habib Modaraba in respect of vehicles 171,765 194,432

      13

      
      
      

      14

3. Segment operating results for the first quarter (Unaudited) Net sales and services

   (Rupees in thousands)

   Sugar Division Distillery Division Textile Division Trading Division Total Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,

   2025 2024 2025 2024 2025 2024 2025 2024 2025 2024

   Sales - Local 1,834,705 2,712,106					160,229		117,902		-		-		779		-		1,995,713		2,830,008
   - Export - 729,056					1,062,933		1,133,690		124,127		180,613		-		-		1,187,060		2,043,359
   1,834,705 3,441,162					1,223,162		1,251,592		124,127		180,613		779		-		3,182,773		4,873,367
   Terminal storage income-net	-		-	-		116		-		-		-		-		-		116
   	1,834,705		3,441,162		1,223,162		1,251,708		124,127		180,613		779		-		3,182,773		4,873,483
   Less: Cost of sales	(1,327,540)		(2,944,329)		(1,105,816)		(1,130,860)		(112,182)		(162,856)		(808)		-		(2,546,346)		(4,238,045)
   Gross Profit	507,165		496,833		117,346		120,848		11,945		17,757		(29)		-		636,427		635,438
   Less: Selling and distribution expenses	(29,330)		(49,984)		(58,989)		(43,340)		(11,822)		(11,519)		-		-		(100,141)		(104,843)
   Administrative expenses	(103,932)		(89,084)		(16,726)		(14,222)		(2,110)		(2,208)		-		-		(122,768)		(105,514)
   	(133,262)		(139,068)		(75,715)		(57,562)		(13,932)		(13,727)		-		-		(222,909)		(210,357)
   Profit before other operating expenses and other income	373,903		357,765		41,631		63,286		(1,987 )		4,030		(29)		-		413,518		425,081
   Other operating expenses - note 15																	(48,003)		(51,785)
   Other income - note 16																	199,397		185,318
   Operating Profit																	564,912		558,614

   (Unaudited)

   Dec. 31, Dec. 31,

   2025 2024

   (Rupees in thousands)

4. Other operating expenses

   Workers' Profit Participation Fund 37,003 40,365

   Workers' Welfare Fund 11,000 10,000

   Others - 1,420

   48,003 51,785

5. Other income Income from financial assets

   Dividend income 107,585 127,855

   65

   2,320 -47,067

   8,011

   1,553

   2,093

   74,669

   9,584

   3,913

   Income from non financial assets Gain on disposal of fixed assets Agriculture Income

   Unrealised gain on remeasurement of investment as FVPL Exchange gain / (loss) - net

   Scrap sale

   91,812 57,463

   199,397 185,318

6. Finance income / (cost) - net

   82,388

   1,250

   321

   70,783

   968

   155

   Profit / Interest on :

   Treasury call accounts Term deposit receipts Loan to employees

   71,906 83,959

   Less:

   Short-term borrowings	(3,589)		(46,336)
   Lease Liability	(414)		(743)
   Workers' Profit Participation Fund	(8,600)		(3,961)
   ank charges (7,578) (11,817)
   (20,181)			(62,857)
   51,725			21,102

   Mark-up / interest on:

   B

   15

   
   
   
   
   

   (Unaudited)

   Dec. 31, Dec. 31,

   2025 2024

   (Rupees in thousands)

7. Cash generated from / (used in) operations

1. Transactions with related parties

   Related parties comprise of associated entities, group companies, entities with common directorship, retirement benefits funds, directors and key management personnel. Material transactions with related parties during the period and balances at the end of the period, other than those which have been disclosed elsewhere in these condensed interim financial statements, are as follows:

   16

(Unaudited)

Dec. 31, Dec. 31,

2025 2024

(Rupees in thousands)

1. Dividend

   The Board of Directors of the Company in their meeting held on December 17, 2025 had proposed a final cash dividend of Rs.6.00 per share (120%) for the year ended September 30, 2025. The cash dividend as proposed by the Board of Directors of the Company was approved by the members at the Annual General Meeting of the Company held on January 27, 2026. The proposed cash dividend has been accounted for in these condensed interim financial statements.

2. General

   • Figures presented in these condensed interim financial statements have been rounded off to the nearest thousand rupees.

   • These condensed interim financial statements were authorised for issue on January 27, 2026 by the Board of Directors of the Company.

Chief Financial Officer

Chief Executive

Director

2024• 31 2025• 31