Transmission of Quarterly Report for the Period Ended 31st December 2025

TABLE OF CONTENTS

P.2

P.3

P.04

Company Information

Vision and Mission Statement

Directors' Review

P.06

P.08

P.09

Condensed Interim Statement of Financial Position

Condensed Interim Statement of Profit or Loss and other Comprehensive Income

Condensed Interim Statement of Changes in Equity

P.10 P.11

Condensed Interim Statement of Cash Flows

Selected Notes to the Condensed Interim Financial Information

COMPANY

INFORMATION

BOARD OF DIRECTORS

CHAIRPERSON

Mrs. Qaiser Shamim Khan

CHIEF EXECUTIVE

Mr. Muhammad Shamim Khan

MANAGING DIRECTOR

Mr. Nauman Ahmed Khan

DIRECTORS

Mr. Muhammad Shamim Khan (Director) Mrs. Qaiser Shamim Khan (Director)

Mr. Adnan Ahmed Khan (Director)

Mr. Nauman Ahmed Khan (Director)

Mr. Muhammad Khan (Director)

Mrs. Farrah Khan (Director)

Mrs. Sarah Hajra Khan (Director) Mr. Anwar Ahmed Khan (Independent Director)

Mr. Muhammad Ashraf Khan Durani

(Independent Director) Mr. Farid Ud Din Ahmed (Independent Director)

Pak Kuwait Investment Company (Pvt) Ltd Standard Chartered Bank (Pakistan) Limited Soneri Bank Limited

Samba Bank Limited The Bank of Punjab United Bank Limited

AUDIT COMMITTEE

Mr. Muhammad Ashraf Khan Durani Chairman

Mrs. Qaiser Shamim Khan Member

Mr. Adnan Ahmed Khan Member

HUMAN RESOURCE & REMUNERATION COMMITTEE

Mr. Farid Ud Din Ahmed Chairman

Mr. Adnan Ahmed Khan Member

Mr. Muhammad Khan Member

RISK AND SUSTAINABILITY COMMITTEE

Mr. Farid Ud Din Ahmed Chairman

Mr. Muhammad Ashraf Khan Durani Member

NOMINATION COMMITTEE

Mr. Farid Ud Din Ahmed Chairman

CHIEF FINANCIAL OFFICER

Mr. Hafiz Muhammad Arif

COMPANY SECRETARY

Mr. Wasif Mahmood

AUDITORS

M/s. Rahman Sarfaraz Rahim Iqbal Rafiq

Chartered Accountants, Lahore

LEGAL ADVISOR

Mr. Shehzad Ata Elahi, Advocate

BANKERS

Allied Bank Limited Askari Bank Limited Bank Al-Habib Limited Bank Alfalah Limited

BankIslamic (Pakistan) Limited

Dubai Islamic Bank (Pakistan) Limited Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited MCB Bank Limited

MCB Islamic Bank Limited Meezan Bank Limited

NBP Aitemaad Islamic Bank Limited Pak China Investment Company Limited

Mr. Muhammad Ashraf Khan Durani Member

SHARE REGISTRAR

M/s. Corplink (Pvt) Ltd

Wings Arcade, 1-K- Commercial Model Town, Lahore

Tel: 042-35839182, 35887262

Fax: 042-35869037

REGISTERED OFFICE

23- Pir Khurshid Colony Gulgasht, Multan Tel: 061-6524621, 6524675

Fax: 061-6524675

LAHORE OFFICE

2-D-1 Gulberg-III, Lahore - 54600 Tel: 042-35771066-71

Fax: 042-35756784, 35771175

FACTORY ADDRESSES

Unit 1: Layyah Sugar Mills, Layyah Tel: 0606-411981-4, 0606-410014

Fax: 0606-411284

Unit 2: Safina Sugar Mills, Lalian District

Chinniot.

Tel: 047-6610011-6, 047-7629990

Fax: 047-6610010

WEBSITE: https://www.thalindustries.com

VISION

We shall build on our core competencies and achieve excellence in performance to become a leading producer of best quality sugar. In doing so we aim to meet or accede the expectations of all our stakeholders.

Our goal is not only to attain technological advancements in the field of sugar but also to inculcate the most efficient, ethical and time tested business practices in our management.

Furthermore, we shall strive to innovate the ways for the improvement and increase in per acre yield of sugarcane and introduce improved varieties of sugarcane having better yield characters, high sucrose contents, disease and drought resistant and better ratooning crop in the region. We shall introduce the mechanized sugarcane cultivation mehtod to the growers and to educate regarding latest developments of agriculture technology and free consultancy of professionals.

We aim to be a leading producer and supplier of quality sugar by adopting the most technological advancement. We intend to play a pivotal role in the economic development of Pakistan.

DIRECTORS'

REVIEW

The Directors of your Company are pleased to present the Un-Audited Accounts of the Company for the Quarter Ended 31 Dec 2025 in compliance with the section 237 of the Companies Act, 2017.

INDUSTRY OVERVIEW

Sugarcane remains a key component of Pakistan's agricultural economy, with the sugar sector being the second-largest agro-based industry after textiles. It contributes around 3.5% to agricultural value addition and approximately 0.8% to the national GDP.

During the first quarter of the 2025-26 crushing season, sugarcane yields per acre across Pakistan remained broadly stable, While yields continued to face pressure from higher input costs and localized weather variability.

During the 2025-26 crushing season, the process of deregulation of the sugar industry continued. Similar to the previous season, the Provincial Governments have not notified a support price for sugarcane, and cane prices are being determined through market-based mechanisms. This approach reflects a continuation of policy measures aimed at allowing demand and supply dynamics to guide pricing during the ongoing crushing season.

OPERATING HIGHLIGHTS

As of the reporting date, the company successfully processed 832,751.360 metric tons of sugarcane, resulting in the production of 80,138.650 metric tons of white refined sugar, achieving an average recovery rate of 9.980%. In comparison, during the same period last year, the company processed 1,000,465.015 metric tons of sugarcane, yielding 91,494.500 metric tons of white refined sugar with an average recovery rate of 9.575%. This reflects a slight improvement in recovery compared to the previous year while crushing decline due to unavailability of sugar cane during the period.

Net sales for the first three months of the current financial year amounted to Rs. 4,968.91 million, compared to Rs. 10,923.557 million for the same period last year.

The company achieved a pretax profit of Rs. 514.639 million during the period under review, representing an increase compared to the pretax profit of Rs. 144.620 million in the corresponding period of the previous year. This increase is primarily attributable to better selling price and reduced cost of the carryover stock from the previous year and lower borrowing costs incurred during the period.

Efforts are being made to boost the company's production and profitability by improving process efficiency, adopting advanced technologies, reducing production costs through close supervision, and providing cane growers with the latest improved seed varieties, fertilizers, pesticides, and continuous support. These initiatives are aimed at increasing sugar recovery and delivering greater benefits to the cane growers.

FUTURE OUT LOOK

During the ongoing 2025-26 crushing season, the Provincial Governments have continued their policy of not notifying a support price for sugarcane, allowing cane pricing to be determined by market forces. The industry continues to advocate for full deregulation of the sugar sector to promote efficiency, transparency, and long-term sustainability. Stabilization of sugar prices and narrowing the differential between local and imported sugar remain critical to ensuring equitable returns for growers while maintaining reasonable margins for the industry and supporting productivity improvements.

The Government's focus on economic stability and growth has led the State Bank of Pakistan (SBP) to maintain the base rate at 10.5%. This has contributed to lower borrowing costs, which is expected to positively impact the Company's finance expenses and overall profitability. The business community remains optimistic regarding further easing in interest rates, subject to inflation and external account dynamics.

The financial year 2025-26 looks promising, with lower discount rates reducing finance costs, while cane availability remains stable but recovery levels are expected to be improved during the current crushing season. The Company's profitability will continue to depend on domestic sugar prices, input cost trends, and the prevailing regulatory and tax framework.

ACKNOWLEDGEMENT

The Board places on record its sincere appreciation for the dedication and commitment of the Company's employees, whose collective efforts continue to support the Company's operations and performance. The Board also extends its gratitude to the financial institutions, farmers, business partners, and all other stakeholders for their continued trust, support, and cooperation.

For and on behalf of Board

The Thal Industries Corporation Ltd.

Mrs. Qaiser Shamim Khan

Muhammad Shamim Khan

Chairperson Chief Executive

Lahore: 26th January, 2026

CONDENSED INTERIM STATEMENT

OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025 (UN-AUDITED)

EQUITY & LIABILITIES

Share Capital and Reserves

Note

(Audited)

30 September

2025

ees) . . . . . . . . . .

Share capital 4

Revenue reserves General reserve Unappropriated profit

LOANS FROM DIRECTORS

Non Current Liabilities

Lease liabilities 5

Staff retirement benefits - Gratuity Deferred taxation

Current Liabilities Trade and other payables Accrued markup/ profit

Short term borrowings-secured 6

Current portion of lease liabilities Uncashed Dividend warrants Provision for taxation

Contingencies and Commitments 7

The annexed notes form an integral part of this condensed interim financial information.

150,232,320

93,800,000

11,775,621,128

12,019,653,448

65,359,293

338,370,552

564,936,323

-12,019,653,448

968,666,168

3,339,777,956

96,879,657

1,485,589,729

39,820,767

22,101,080

843,498,227

5,827,667,416

-

18,815,987,032

CHIEF EXECUTIVE

CHIEF FINANCIAL OFFICER DIRECTOR

CHIEF EXECUTIVE

CHIEF FINANCIAL OFFICER DIRECTOR

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE FIRST QUARTER ENDED 31 DECEMBER 2025 (UN-AUDITED)

Quarter ended

Note

Sales - Net

Cost of sales 10

Gross profit

Operating expenses

Distribution and selling expenses Administrative expenses

Operating profit

Other income 11

Finance cost Other expenses

Profit before levies and income taxes

Levies

Profit before income tax

Taxation- Income taxes

Profit after taxation

Other Comprehensive Income-Net of Tax

Items that may be subsequently reclassified to profit or loss

Items that will not be reclassified to profit or loss: Remeasurement of staff gratuity (loss)/gain Related impact on deferred tax

Other comprehensive loss for the year

Total comprehensive income / (loss) for the year

Earnings Per Share-Basic & Diluted 12

CHIEF EXECUTIVE

The annexed notes form an integral part of this condensed interim financial information.

CHIEF FINANCIAL OFFICER DIRECTOR

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE FIRST QUARTER ENDED 31 DECEMBER 2025 (UN-AUDITED)

The annexed notes form an integral part of this condensed interim financial information.

CHIEF EXECUTIVE

CHIEF FINANCIAL OFFICER DIRECTOR

CONDENSED INTERIM STATEMENT

OF CASH FLOWS

FOR THE FIRST QUARTER ENDED 31 DECEMBER 2025 (UN-AUDITED)

Adjustment for:

CHIEF EXECUTIVE

CHIEF FINANCIAL OFFICER DIRECTOR

SELECTED NOTES TO THE

CONDENSED INTERIM FINANCIAL INFORMATION

FOR THE FIRST QUARTER ENDED 31 DECEMBER 2025 (UN-AUDITED)

1. STATUS AND ACTIVITIES

   The Thal Industries Corporation Limited (the Company) is a public limited company incorporated in Pakistan on 07 September 1953 under the Companies Act, 1913 (now the Companies Act, 2017) and is listed on Pakistan Stock Exchange. The Company is principally engaged in production and sale of refined sugar and its by-products.

   Geographical location and address of business units/plants

   Purpose	Location	Address
   Registered Office	Multan	23-Pir Khurshid Colony Gulgasht , Multan
   Head Office	Lahore	2-D-1 Gulberg III , Lahore
   Mill Site Unit-1	Layyah	Layyah Sugar Mills , Layyah
   Mill Site Unit-2	Chinniot	Safina Sugar Mills , Lalian District Chinniot

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 International Accounting 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.

   2. The condensed interim financial statements are not audited and have been presented in condensed form and do not include all the information as is required to be provided in a full set of annual financial statements. These condensed interim financial statements should be read in conjunction with the audited financial statements of the Company for the year ended September 30, 2025.

   3. The comparative figures as at September 30, 2025 in the condensed interim statement of financial position and the related notes to the condensed interim financial statements are based on audited financial statements. The comparative condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of cash flows, condensed interim statement of changes in equity and related notes to the condensed interim financial statements for the Three months' period ended December 31, 2025 are based on unaudited condensed interim financial statements. The condensed interim statement of profit or loss and other comprehensive income for the three months' period ended December 31, 2025 and December 31, 2024 are neither audited nor reviewed.

   4. The preparation of condensed Interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgments made by management in applying the Company's accounting policies and the key sources of estimates uncertainty were the same as those that applied to the financial statements for the year ended September 30, 2025.

      These condensed interim financial statements are presented in Pak Rupees which is also the Company's functional and presentation currency. All financial information presented in Pak Rupees has been rounded to the nearest of Rupees. Figures for previous year/ period are rearranged wherever necessary to facilitate comparison. Appropriate disclosure is given in relevant note in case of material rearrangement.

3. MATERIAL ACCOUNTING POLICY INFORMATION

   SHARE CAPITAL Number of Shares 31-12-2025 30-09-2025 Authorized Capital: 100,000,000 100,000,000 Ordinary shares of Rs. 10/- each			(Un-Audited) 31 December 2025 . (Rup 1,000,000,000	(Audited) 30 September 2025 ees) .......... 1,000,000,000
   Issued, subscribed and paid up capital:
   8,368,846	8,368,846	Ordinary shares of Rs. 10/-
   		each fully paid in cash	83,688,460	83,688,460
   142,770	142,770	Ordinary shares of Rs. 10/- each
   		issued as fully paid for consideration
   		otherwise than cash	1,427,700	1,427,700
   6,511,616	6,511,616	Ordinary shares of Rs. 10/-
   		each issued as bonus shares	65,116,160	65,116,160
   15,023,232	15,023,232		150,232,320	150,232,320

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

*All the shares are similar with respect to their rights on voting board selection, first refusal and block voting.

Not later than one year

Later than one year but not later than five years

1. SHORT TERM BORROWINGS - SECURED

   Note

   (Audited)

   (Un-Audited) 31 December 2025 . (Rup

   452,955,300 2,936,232,431

   3,389,187,731 2,675,902,129

   6,065,089,860

   30 September

   2025

   ees) ..........

   284,024,690

   -

From Conventional Banks:

Running Finance 6.1

Cash Finance 6.2

Islamic mode of financing

Istisna/ Tijarah/ Salam/ Murabaha 6.3

284,024,690

1,201,565,039

1,485,589,729

Commitments

8.1.1 Additions and Disposals Operating Fixed Assets

Owned Assets

Freehold land

Building on freehold land Plant and machinery

Tools, implements and other factory equipments Computer & other office equipments

Electric installations Vehicles

Leased Assets

Vehicles Buildings

12. EARNINGS / (LOSS) PER SHARE - BASIC AND DILUTED

Earnings per share is calculated by dividing the profit after taxation for the period by the weighted average number of shares outstanding during the period as follows:

(Un-Audited)

31 December

2025

(Un-Audited)

31 December

2024

.......... (Rupees) ..........

Quarter ended

No figure for diluted earnings per share has been presented as the company has not issued any instruments carrying options which would have an impact on earnings per share when exercised.

(Un-Audited)

31 December

2025

(Un-Audited)

31 December

2024

.......... (Rupees) ..........

Quarter ended

1. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES

   Quarter ended 31 December 2025				Quarter ended 31 December 2024
   Chief Executive	Directors	Executives	Total	Chief Executive	Directors	Executives	Total
   		. R U P E		E S . . . . . . . . . . . . . . . . . . . .
   510,000	510,000	88,877,719 89,897,719		510,000 510,000		67,266,219	68,286,219
   -	-	15,342,348 15,342,348		- -		-	-
   -	-	3,065,425 3,065,425		- -		2,861,201	2,861,201
   510,000	510,000	107,285,492 108,305,492		510,000 510,000		70,127,420	71,147,420
   1	1	76 78		1 1		64	66

   Remuneration of Chief Executive, Directors and Executives charged during the period under review is as under:

   Managerial remuneration Incentives

   Utilities Total

   Number of Persons

2. TRANSACTIONS WITH RELATED PARTIES

   The related parties comprise associated companies, entities over which the directors are able to exercise influence, staff retirement funds, directors and key management personnel. The transactions with related parties other than remuneration and benefits to key management personnel under the terms of their employment which are disclosed in the Note 14 are as follows:

   Quarter ended

   			(Un-Audited) 31 December 2025 . (Rup	(Un-Audited) 31 December 2024 ees) ..........
   Name of Company	Transaction	Nature of Relationship
   Naubahar Bottling Company (Pvt) Limited	Sale of goods	Common Directorship	32,374,574	1,438,205,645
   Al-Moiz Industries Limited	Sale of goods Purchase of Goods	Common Directorship Common Directorship	31,924,800 37,506,050	99,542,515 46,328,009
   Baba Farid Sugar Mills Limited	Sale of goods	Common Directorship	-	6,120,000
   	Purchase of Goods	Common Directorship	-	-

   (Un-Audited)	(Audited)
   31 December	30 September
   2025	2025
   . (Rup	ees) ..........
   32,374,574	-
   84,344,409	155,789,683
   -	-
   116,718,983	155,789,683

   The company continues to have a policy whereby all transactions with related parties and associated undertakings are priced at comparable uncontrolled market price.

   Balance due from/(due to) related parties as at 31 December 2025 are as below:

   Naubahar Bottling Company (Pvt) limited Al-Moiz Industries Limited

   Baba Farid Sugar Mills Ltd

3. FINANCIAL INSTRUMENTS

   Financial Other Assets financial Total Level 1 Level 2 liabilities - - - - - - - - - - - - - - - - - -- Rupees - - - - - - - - - - - - - - - - - -- 668,232,455 - 668,232,455 - -						Level 3 -
   668,232,455		-	668,232,455	-	-	-
   6,464,500	-	6,464,500	-	-		-
   2,129,449,540	-	2,129,449,540	-	-		-
   6,300,604	-	6,300,604	-	-		-
   3,472,783	-	3,472,783	-	-		-
   965,776,845	-	965,776,845	-	-		-
   3,111,464,274		-	3,111,464,274	-	-	-
   3,779,696,729	-	3,779,696,729	-	-		-
   -	-	-	-	-		-
   -		-	-	-	-	-
   -	119,742,943	119,742,943	-	-		-
   -	2,340,514,672	2,340,514,672	-	-		-
   	22,090,051	22,090,051	-	-		-
   -	17,203,484	17,203,484	-	-		-
   -	6,065,089,860	6,065,089,860	-	-		-
   -		8,564,641,010	8,564,641,010	-	-	-

   Carrying Amount Fair Value

   On-balance sheet financial instruments

   31 December 2025 (Un-Audited)

   Financial assets measured at fair value

   Note

   Financial assets measured at amortized cost 16.1

   Long term Deposits Trade debts

   Loans and advances

   Trade deposits, prepayments and other Receivables Cash and bank balances

   Financial liabilities measured at fair value

   Financial liabilities measured at amortized cost 16.1

   Lease Liabilities

   Trade and other payables Uncashed Dividend warrants Accrued markup/ profit Short term borrowings

   30 September 2025 (Audited)
   Financial assets measured at fair value		947,629,670		-		947,629,670		-		-		-
   		947,629,670		-		947,629,670		-		-		-
   Financial assets measured at amortized cost	16.1
   Long term Deposits		6,464,500		-		6,464,500		-		-		-
   Trade debts		842,601,345		-		842,601,345		-		-		-
   Loans and advances		7,288,115		-		7,288,115		-		-		-
   Trade deposits, prepayments and other Receivables		3,472,783		-		3,472,783		-		-		-
   Cash and bank balances		1,497,656,509		-		1,497,656,509		-		-		-
   		2,357,483,252		-		2,357,483,252		-		-		-
   		3,305,112,922		-		3,305,112,922		-		-		-
   Financial liabilities measured at fair value		-		-		-		-		-		-
   		-		-		-		-		-		-
   Financial liabilities measured at amortized cost Lease Liabilities	16.1	-		105,180,060		105,180,060		-		-		-
   Trade and other payables		-		931,079,209		931,079,209		-		-		-
   Uncashed Dividend warrants				22,101,080		22,101,080
   Accrued markup/ profit		-		96,879,657		96,879,657		-		-		-
   Short term borrowings		-		1,485,589,729		1,485,589,729		-		-		-
   Advances from directors		-		-		-		-		-		-
   		-		2,640,829,735		2,640,829,735		-		-		-

   1. The management considers the carrying amount of all fnancial assets and liabilities measured at amortized cost at the end of the reporting period/ year to approximate their fair value as at the reporting date.

4. SEASONALITY

   The Company's business is seasonal in nature. Entire cane crushing and manufacturing of sugar is done during season from November to the following March. Sugar sales are made throughout the year.

5. SUBSEQUENT MATERIAL EVENTS

   There is no significant activities since 31 December 2025 affecting the condensed interim financial information apart from those disclosed in the interim financial information.

6. DATE OF AUTHORIZATION

This condensed interim financial information has been authorized for issue on 26 January 2026 by the Board of Directors.

CHIEF EXECUTIVE

CHIEF FINANCIAL OFFICER DIRECTOR

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THE THAL INDUSTRIES CORPORATION LIMITED

Registered Office: Lahore Office:

23-Pir Khurshid Colony Gulgasht Multan. Ph: 061-6524621 - 6524675

Fax: 061-6524675

2-D-1 Gulberg-III, Lahore - 54600 Tel: 042-35771066-71

Fax: 042-35771175