Transmission of Quarterly Report for the Period Ended 31-Dec-2025

Transcending Boundries

In the ever-evolving landscape of the sugar industry, Jauharabad Sugar Mills Limited has embraced the philosophy of "Transcending Boundaries" as a guiding principle in our operations. This year, we have focused on breaking traditional barriers by integrating innovative technologies, enhancing sustainable practices, and fostering community engagement. Our commitment to excellence has propelled us to explore new markets and expand our product offerings, ensuring we meet the diverse needs of our stakeholders. By transcending boundaries, we not only aim to boost our operational efficiency but also contribute positively to the environment and the communities we serve, thereby setting new benchmarks for the industry.

Table of Contents

Corporate Information 04

Financial Highlights 06

Corporate Information

Board of Directors

Mr. Syed Anwar Hussain Shahid Mr. Muhammad Aamir Beg

Ms. Faiza Iftikhar

Mr. Jawad ur Rehman Khan Mr. Ghias-uI-Hasan

Mr. Amjed Javed Aftab Mr. Saif-ur-Rehman

Nomination Committee

Ms. Faiza Iftikhar Mr. Ghias-UI-Hasan

Chief Financial Officer

Mr. Syed Muhammad Usman Afzaal

Head of Internal Audit

Mr. Kazim Ali

Company Secretary

Mr. Al-Yousuf

Chief Executive Independent Director Independent Director Independent Director

CPL Nominee CPL Nominee CPL Nominee

Chairperson

Member

Audit Committee

Mr. Jawad ur Rehman Khan Mr. Muhammad Aamir Beg Mr. Amjed Javed Aftab

Human Resource Committee

Mr. Muhammad Aamir Beg

Mr. Syed Anwar Hussain Shahid Mr. Ghias-uI-Hasan

Risk Management Committee Mr. Saif-ur-Rehman

Mr. Amjed Javed Aftab

Auditors

UHY Hassan Naeem & Co. (Chartered Accountants) 193-A, Shah Jamal Lahore, Pakistan

Phone No. 042 35403550

Fax No. 042 35403599

E-mail: info uhy-hnco.com

Chairman Member Member

Chairman Member Member

Chairman Member

Legal Advisor

Siddiqui Bari Kasuri & Co.

Advocates & Corporate Legal Consultants 179/180-A, Scotch Corner, Upper Mall, Lahore

Phone No. 042-35758573-74, Fax No. 042-35758572

Bankers of the Company

Askari Bank Ltd. Soneri Bank Ltd. PAIR Investment Company Ltd. MCB Bank Ltd. Samba Bank Ltd. Bank Alfalah Ltd.

National Bank of Pakistan United Bank Ltd.

Habib Metropolitan Bank Ltd. Habib Bank Ltd. Parwaaz Financial servicies Ltd. FINCA Bank Ltd. Pak China Investment Compnay Ltd. Allied Bank Ltd.

National Tax Number 0225972-9

Registered Address

125-B, Quaid-e-Azam Industrial Estate Kot Lakhpat, Lahore, Punjab, Pakistan Phone No. 042 35213491

Fax No. 042 35213490

E-mail: secretary@jsml.com.pk

Company Website https://www.jsml.com.pk

04 I JSML 1st Quarter 2026

Share Registrar

Corplink (Pvt.) Ltd.

Wings Arcade, 1-K Commercial Model Town, Lahore Phone No. 042 35916714, Fax No. 042 35869037

E-mail: shares@corplink.com.pk

Islamic Bankers of the Company Al Baraka Bank (Pakistan) Ltd.

MCB Islamic Bank Ltd.

Saudi Pak Industrial & Agricultural Investment Co. Ltd. Faysal Bank Ltd.

Sales Tax Registration Number 0409170300137

Mills

Jauharabad, District Khushab, Punjab, Pakistan

Phone No. 0454 720063-6,

Fax No. 0454 720880

Directors' Report

On behalf of the Board of Directors and myself, I am delighted to present before you the unaudited financial statements of the Company for the first quarter ended December 31, 2025.

Sector Overview

The completion of the financial year 2024/25 for the sugar sector highlights significant challenges, despite the sector remaining one of the most rewarding industries for its stakeholders. It continues to benefit farmers through timely payments and contributes meaningfully to government revenues through taxation and foreign exchange earnings. Regulatory authorities have enforced rigorous oversight to monitor sector performance, while the increased adoption of track-and-trace and digital monitoring systems, including the Federal Board of Revenue's 24/7 electronic oversight introduced for the current season, demonstrates the industry's commitment to transparency, tax compliance, and its contribution to national economic growth.

In the first quarter of FY 2025/26, the crushing season commenced with limited carry-forward stock levels. Nonetheless, price fluctuations and supply shortages have still characterized the market. Over the past year, the government has gradually reduced its direct involvement in the sugarcane market, signaling a trend toward minimal intervention in price-setting, the government maintained its market-based policy stance by not announcing a Minimum Support Price for sugarcane, allowing prices to be set by fundamental economic forces and enabling improved realizations for farmers. The sector recorded a strong initial performance, particularly in Punjab, where crushing operations began in mid-November2025. During the first 45 days, 41 mills were operational and produced approximately

1.36 million tons of sugar, supported by an improved recovery rate of around 9.43 percent.

During the year, adverse climatic developments, including widespread flood damage in major growing regions, negatively impacted overall sugarcane yields at the national level. This production shortfall is being partially compensated by increased cultivated areas in unaffected regions and strong initial output levels. As a result, overall sugar production is expected to remain sufficient to meet domestic consumption requirements and is anticipated to be slightly higher than last year. Evolving market conditions, including speculative activity and fluctuating global demand, have contributed to volatility in sugar prices. Nevertheless, improved early-season operational efficiencies and disciplined cost management during the current season are expected to support the sector in delivering favorable returns to stakeholders.

Operational Performance

The processing facility began operations on November 15, 2025, and remained operational for a total of 47 days during the quarter. Total crushing increased by 52.88 percent compared to the corresponding period of the previous year, mainly due to improved sugarcane availability and a smoother commencement of the crushing season. These favorable conditions enable the Company to produce 22,175 metric tons of white refined sugar, representing a 56.92 percent increase over the corresponding period.

The average sucrose recovery improved by 0.93 percent, reflecting the Company's continued focus on operational efficiency. Additionally, molasses yield increased by 2.64 percent, positively contributing to the overall contribution margin. Furthermore, in line with the Company's commitment to supporting the agricultural community, a strategy has been implemented to provide fertilizers to growers on a credit basis. This initiative has resulted in improved varietal cane supply at JSML's gate premises. By equipping growers with these inputs, the Company aims to enhance cane yields and support overall industry productivity.

Financial Performance

The Company recorded a 25.77 percent decline in revenue to Rs. 2,054 million (Q1 2025: Rs. 2,767 million), primarily due to the absence of export sugar sales during the current period. This decline was accompanied by a substantial reduction in cost of sales, which decreased from Rs. 2,581 million to Rs. 1,792 million, representing a decline of approximately 30.6 percent. Despite an increase in per-

08 I SML 1st Quarter 2026

unit sugarcane procurement costs, gross profit margin improved to 12.76 percent (Q1 2025: 6.74 percent), mainly due to a relatively higher increase in average sugar sale prices.

Moreover, Finance Costs increased from Rs 57 million to Rs 68 million, reflecting an approximate rise of 19.3 percent. This increase was primarily driven by elevated working capital requirements during the initial phase of the crushing season. Consequently, net profit declined from Rs 47 million to Rs 37 million. Despite this, the net profit margin improved slightly to 1.79 percent from 1.71 percent. The Company continues to maintain a strong financial position and remains compliant with its financial obligations. It remains committed to preserving strong relationships with financial institutions and stakeholders, while continuing to focus on improving inventory management, exercising cost control, and exploring financing strategies to enhance profitability for all stakeholders.

Acknowledgement

The Directors of the Company wish to express their gratitude to all stakeholders for their dedication and continued support towards the growth and prosperity of the Company.

For & on Behalf of Board

Syed Anwar Hussain Shahid

Chief Executive

JSML 1st Quarter 2026 1 09

10 | JSML 1st Quarter 2026

JSML 1st Quarter 2026 | 11

Jauharabad Sugar Mills Limited

Condensed Interim Statement of Financial Position

As at December 31, 2025

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

Lahore:

January 29, 2026 Chief Executive

Director Chief Financial Officer

12 | JSML 1st Quarter 2026

Jauharabad Sugar Mills Limited

Condensed Interim Statement of Financial Position

As at December 31, 2025

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

Lahore: January 29, 2026 Chief Executive Director Chief Financial Officer

JSML 1st Quarter 2026 | 13

Jauharabad Sugar Mills Limited

Condensed Interim Statement of Comprehensive Income (Un-audited)

For the Quarter Ended December 31, 2025

Note

Un-audited Un-audited

Dec 31 Dec 31

2025 2024

(Rupees in thousands)

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

Lahore:

January 29, 2026 Chief Executive

14 | JSML 1st Quarter 2026

Director Chief Financial Officer

Jauharabad Sugar Mills Limited

Condensed Interim Statement of Other Comprehensive Income (Un-audited)

For the Quarter Ended December 31, 2025

Un-audited Un-audited

Dec 31 Dec 31

2025 2024

(Rupees in thousands)

Profit after taxation

Other comprehensive income for the period

Items that will not be reclassified

subsequently to profit and loss account:

Gain on revaluation of land, building, plant & machinery - net of tax

Total comprehensive income for the period

47,223

47,223

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

Lahore: January 29, 2026 Chief Executive Director Chief Financial Officer

JSML 1st Quarter 2026 | 15

Jauharabad Sugar Mills Limited

Condensed Interim Statement of Cash Flows (Un-audited)

For the Quarter Ended December 31, 2025

Un-audited Un-audited

Dec 31 Dec 31

2025 2024

(Rupees in thousands)

Cash flow from operating activities

Profit before taxation Adjustments for:

Depreciation Amortization

Loss/(gain) on disposal of property, plant and equipment Provision for WPPF

Finance cost

Profit before working capital changes Working capital changes

Stores, spare parts and loose tools

Stock in trade Loans and advances

Trade debts- unsecured considered good Trade deposits and short term prepayments Trade and other payables

Cash used in operations Finance cost paid

Taxes paid

Net cash used in operating activities

65,891

138,083

203,974

(266,490)

4,158

208,132

(138,249)

(11,901)

57,982

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

Lahore:

January 29, 2026 Chief Executive

Director Chief Financial Officer

16 | JSML 1st Quarter 2026

Jauharabad Sugar Mills Limited

Condensed Interim Statement of Cash Flows (Un-audited)

For the Quarter Ended December 31, 2025

Un-audited Un-audited

Dec 31 Dec 31

2025 2024

(Rupees in thousands)

Cash flow from investing activities

Addition to fixed assets

Proceeds from sale of fixed assets

Net cash generated (used in) investing activities

Cash flow from financing activities Lease rentals paid

Loan from associates

Net cash generated from financing activities Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of the period Cash and cash equivalents at the end of the period

Cash and cash equivalents comprise of following statement of financial position amounts:

• Short term investments

• Cash and bank balances

• Short term borrowings

(75,147)

(203)

(17,368)

(2,465,886)

(2,483,254)

114,859

248,878

(2,846,991)

(2,483,254)

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

Lahore:

January 29, 2026 Chief Executive Director Chief Financial Officer

JSML 1st Quarter 2026 | 17

Jauharabad Sugar Mills Limited

Condensed Interim Statement of Changes in Equity (Un-audited)

For the Quarter Ended December 31, 2025

Share share Accumulated Revaluation Loan from Capital Premium FOfit5 Surplus Sponsors

(Rupees in thousands)

Total

Balance as at October 01, 2024 341,285 372,403 1,081,199 6,163,196 1,383,836 9,341,919

Transactions made during the year

Profit after taxation Other comprehensive income for the period

Total comprehensive income for the period

Incremental depreciation for the period

47,223

27,443 (27,443)

47,223

Balance as on

December 31, 2024

Balance as on October 01, 2025

Transactions made during the year

Profit after taxation

Other comprehensive income for the period

Total comprehensive income for the period

Transfer of incremental depreciation (net of tax)

Balance as on December 31, 2025

341,285 372,403 1,155,865 6,135,753 1,383,836 9,389,142

The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.

Lahore:

January 29, 2026 Chief Executive

18 | JSML 1st Quarter 2026

Director Chief Financial Officer

Jauharabad Sugar Mills Limited

Notes to the Condensed Interim Financial Statements (Un-audited)

For the Quarter Ended December 31, 2025

1. Reporting entity

   Jauharabad Sugar Mills Limited "the Company" (formerly known as Kohinoor Sugar Mills Limited) was incorporated in Pakistan in 1968 under the repealed Companies Act 1913 (now Companies Act, 2017). The shares of the Company are listed on the Pakistan Stock Exchange. The registered office of the Company is situated at 125-B, Quaid-e-Azam Industrial Estate, Gate No. 4, Kot Lakhpat, Lahore, and the mill is located at Jauharabad, District Khushab, Pakistan. The production plant is located at Industrial Area Jauharabad City District Khushab in the province of Punjab. The principal activity of the Company is manufacturing and sale of sugar and its by-products.

2. Basis of preparation

   1. Statement of compliance

      These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of International Accounting Standard (IAS) 34 "Interim Financial Reporting" issued by the InternationalAccounting Standards Board (IASB) as notified under the Companies Act, 2017 and provisions of and directives issued under the Companies Act, 2017. Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

      The disclosures made in these condensed interim financial statements of the Company has, however, been limited based on the requirements of the International Accounting Standard 34 - Interim Financial Reporting thus these do not include the statements reported for full annual financial statements and should therefore be read in conjunction with the financial statements for the year ended September 30, 2025. These condensed interim financial statements are un-audited and are being submitted to the shareholders as required by section 237 of the Companies Act, 2017 and Listing Regulations of Stock Exchange of Pakistan.

      The comparative statement of financial position presented in these condensed interim financial statements has been extracted from the audited financial statements of the Company for the year ended September 30, 2025, whereas the comparative condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity are extracted from the unaudited condensed interim financial statements for the quarter ended December 31, 2024.

   2. Basis of measurement

      These condensed interim financial statements has been prepared under the historical cost convention except for the Company's freehold land, building and plant & machinery which are stated at revalued amount.

   3. Functional and presentation currency

      These condensed interim financial statements are presented in Pak Rupees which is the functional and presentation currency of the Company.

   4. Critical accounting estimates and judgments

Judgments and estimates made by management in the preparation of these condensed interim financial statements are the same as those applied to the preceding annual published financial statements of the Company for the year ended September 30, 2025.

JSML 1st Quarter 2026 1 19

Jauharabad Sugar Mills Limited

Notes to the Condensed Interim Financial Statements (Un-audited)

For the Quarter Ended December 31, 2025

Accounting policies and computation methods

4 Seasonality of operations

The Company is inter-alia, engaged in manufacturing of sugar for which the season begins in November / December and ends in March / April. Therefore, majority of the expenses are incurred and production activities are undertaken in first half of the Company's financial year thus increasing volume of inventories and current liabilities at the end of the six months.

Note

Un-audited

Dec 31

2025

Audited Sep 30

2025

(Rupees in thousands)

1. Property, plant and equipment Capital work-in-progress

   1. Property, plant and equipment

      Balance at beginning of the period / year Add: Additions during the period / year

      5.1

      11,482,057

      1,793

      11,483,850

      10,270,444

      458,704

      Less: Book value of operating assets disposed - off during the period / year

      Depreciation charged during the period / year

2. Revaluation surplus on property, plant and equipment - net of tax

   Land Building

   Plant and machinery

   Add: Addition in revaluation surplus Land

   Buildings

   Plant and machinery

   20 | JSML 1st Quarter 2026

   (33,392)

   11,814,543

   (332,487)

   11,482,057

   4,112,812

   249,113

   3,362,806

   7,724,731

   1,105,476

   11,163

   2,148

   1,118,787

   
   
   

   Jauharabad Sugar Mills Limited

   Notes to the Condensed Interim Financial Statements (Un-audited)

   For the Quarter Ended December 31, 2025

   Un-audited Dec 31 2025		Audited Sep 30 2025
   	(Rupees in thousands)
   Less: Accumulated incremental depreciation	(920,516)	(875,385)
   Less: Revaluation surplus on buildings disposed off		(9,065)
   Less: Deferred tax liability	7,923,002	7,959,068
   Opening balance	797,455	837,481
   Addition during the period		3,860
   Incremental deprecation for the period	(10,459)	(43,886)
   	786,996	797,455
   	7,136,005	7,161,613

   Sanction limit

   'Rupees in thousand' Note

3. Short term borrowings - secured

   Un-audited Audited

   Dec 31 Sep 30

   2025 2025

   (Rupees in thousands)

   Mark-up based borrowings
   from Conventional Banks	6,150,000	7.1		1,669,238
   Islamic mode of financing	4,275,000	7.2		1,173,967
   	10,425,000			2,843,205

   2,105,542 2,307,612

   4,413,154

   1. These facilities have been obtained from various conventional banks to meet working capital requirements and are secured by charge over current and future assets (fixed and current) of the Company, pledge of sugar stock, lien over import documents and personal guarantees of sponsors and corporate guarantee of Cane Processing (Private) Limited (Holding Company).

      These facilities carry mark-up at rates ranging from 3-month KIBOR + 2.00% to 3-month KIBOR + 2.50% per annum payable quarterly, while certain facilities are subject to 1-month KIBOR + 2.50% per annum.

      The aggregate available short term funded facilities amounts to Rs. 6.15 billion (2025: Rs. 5.85 billion).

   2. These facilities have been obtained from various Islamic banks to meet working capital requirements and are secured by charge over current and future assets (fixed and current) of the Company, pledge of sugar stock, pledge of share of company, lien over import documents, and personal guarantees of sponsors and corporate guarantee of Cane Processing (Private) Limited (Holding Company).

      These facilities carry mark-up at the rates ranging from matching KIBOR + 1.75% per annum to matching KIBOR + 2.50% per annum.

      The aggregate available short term funded facilities amount to Rs.4.28 billion (2025: Rs. 3.32 billion).

      JSML 1st Quarter 2026 | 21

      Jauharabad Sugar Mills Limited

      Notes to the Condensed Interim Financial Statements (Un-audited)

      For the Quarter Ended December 31, 2025

   3. The Loan from sponsors of the company are subordinated under subordination agreement.

1. Contingencies and commitments

   1. Contingencies

      There is no material change in contingencies from the preceding period audited financial statements of the Company for the year ended 30 September 2025.

   2. Commitments

There are no known commitments as on December 31, 2025 (September 30, 2025: Nil).

1. Sales-net

   Local Export

   Less:

   Sales tax

   Commission & Income tax

2. Cost of sales

   Raw material cane purchased and consumed Salaries, wages and other benefits Chemicals, fuel, lubes and packing material Manufacturing expenses

   Depreciation Amortization

   Work-in-process - Opening Work-in-process - Closing

   Cost of goods manufactured Opening stock of finished goods

   Closing stock of finished goods Cost of sales

   22 JSML 1st Quarter 2026

   Un-audited Un-audited

   Dec 31 Dec 31

   2025 2024

   (Rupees in thousands)

   2,448,763 -
   2,448,763 (380,404) (14,059)
   2,054,300
   2,678,345 69,727 51,876 67,473 83,281 2
   2,950,704
   4,768 (144,901)
   (140,133)
   2,810,571 1,148,310
   3,958,881 (2,166,754)
   1,792,127

   2,301,780

   825,872

   3,127,652

   (358,633)

   (1,818)

   2,767,201

   1,461,667

   51,964

   41,478

   73,741

   78,783

   3

   1,707,636

   5,035

   (119,372)

(114,337)

1,593,299

2,897,254

4,490,553

(1,909,909)

2,580,644

Jauharabad Sugar Mills Limited

Notes to the Condensed Interim Financial Statements (Un-audited)

For the Quarter Ended December 31, 2025

1. Taxation

   Provision for taxation for the period has been calculated as per the requirements of Section 4 of Income Tax Ordinance, 2001.

2. Transactions with related parties

The related parties comprise directors of the Company, key employees, provident fund trust, associated undertakings and subsidiary company. Details of transactions with related parties, other than those which have been specially disclosed elsewhere in these financial statements are as follows:

Relationship

Post employment benefit plan Cane Processing (Pvt) Limited Loan from sponsors

Nature of transaction

Provident fund contribution paid

Received/(paid) during the period/year

Received/(paid) during the period/year

Un-audited Audited

31-Dec 30-Sep

2025 2025

(Rupees in thousands)

(6,092)

(300)

(37,900)

13 Financial Risk Management

The Company activities expose it to a variety of financial risk: market risk (including currency risk, fair value interest risk, cash flow interest risk and price risk), credit risk and liquidity risk.

The interim financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements as at 30 September 2025.

14. Date of authorization

These condensed interim financial information were authorized for issue on January 29, 2026 by the Board of Directors of the Company.

1. General

   1. Figures of previous year have been re-arranged and reclassified wherever necessary for the purposes of comparison.

   2. Figures have been rounded off to the nearest thousand rupees.

Lahore: January 29, 2026 Chief Executive Director Chief Financial Officer

JSML 1st Quarter 2026 1 23

Jama Punji Information

The website link of Jama Punji is availdble at the website of Jauharabdd Sugdr Mills Limited for the convenience and facilitation of shareholders and investors.