Mughal Iron & Steel Industries Limited was incorporated in Pakistan as a public limited company in 2010. The Company is engaged in the manufacturing and sale of steel products, along with non-ferrous products such as copper and aluminium. In 2011, the Company took over the running business of a partnership concern by the name of “Mughal Steel” which had been in the steel business for over 60 years and was being run by the major sponsors of the Company. The Company was listed on the Pakistan Stock Exchange in March 2015 where its shares are traded under the Engineering sector. MISIL traces its roots to Mughal Steel, a partnership concern established over six decades ago and managed by the Company’s major sponsors. In 2010, the business was restructured and incorporated as a public limited company to achieve better governance, transparency, and growth prospects. The Company was subsequently listed on the PSX in March 2015 under the Engineering sector. Over the years, MISIL has evolved into a fully integrated manufacturer in the ferrous segment, producing a wide range of steel products, while also diversifying into non-ferrous offerings such as copper and aluminum. The registered head office is located in Lahore, with the manufacturing facility at 17 KM Sheikhupura Road, Kot Abdul Malik. The Company primarily caters to the domestic housing sector (urban and rural), large infrastructure projects, and the international market for non-ferrous products. MISIL’s operations comprise two segments: ferrous and non-ferrous. The ferrous segment is the principal line of business and contributes the majority of revenues. Over time, the Company has developed a broad product portfolio within this segment, including billets, girders, T-Iron, rebars, and other steel products, enabling it to serve the diverse needs of the housing, industrial, and infrastructure sectors. The non-ferrous segment, though relatively smaller in scale, primarily comprises copper and aluminum ingots. Strong export proceeds, from non ferrous segment, particularly from sales to China, enhance MISIL’s overall profitability and provide a competitive edge by diversifying revenue streams beyond the domestic market.

The Sponsor family holds a controlling stake (around ~75.3%) with the remaining ownership distributed among financial institutions and the general public. As of June 30, 2025, the Company’s ordinary shareholding was concentrated with Directors/CEO & family (43.20%) and Associated Companies/related parties (32.16%), while Banks/DFIs/NBFIs held 5.16% and the General Public 7.91%. On June 17, 2025, the company further issued 33,062,447 Ordinary Class-C shares through a rights issue.  The ownership structure of MISIL is regarded as stable, with majority shareholding vested in the Mughal family. As the founding sponsors have a longstanding association with the steel business and their sustained commitment significantly reduces the likelihood of any ownership changes in the foreseeable future. With over six decades in the business, the sponsoring Mughal family demonstrates extensive experience in the steel and allied industries. Their longstanding presence reflects both resilience and strong market knowledge, positioning them as one of the key players in the sector. The financial health of the Company is considered adequate, underpinned by sponsor support. The owners not only provide strategic direction in line with the evolving business environment but have also demonstrated their commitment by injecting funds on an as-and-when-required basis.

The newly elected Board, appointed in October 2025 for a term of three years, comprises seven members. Five directors, including the Chairman, Mr. Mirza Javed Iqbal, Mr. Jamshed Iqbal and the CEO, represent the sponsoring family, while the remaining two serve as independent directors. The Board collectively possesses the requisite skills, experience, and industry knowledge necessary to ensure effective oversight and strategic direction. Mr. Javed Iqbal brings nearly four decades of extensive experience in the local steel industry. The presence of independent directors, Mr. Shoaib Ahmed Khan and Mr. Muhammad Alam Bhatti, further strengthens the Company’s governance framework by enhancing objectivity and balanced decision-making. The Company has constituted three Board committees: (i) Audit Committee, (ii) HR & Remuneration Committee, and (iii) Environment, Social and Governance (ESG) Committee. Each committee includes an independent director in compliance with the SECP Code of Corporate Governance. Overall, Board attendance during the year has remained satisfactory. The inclusion of independent directors reinforces governance standards by ensuring impartial oversight and safeguarding the interests of all stakeholders. Moreover, the presence of a female director contributes to Board diversity and aligns with best corporate governance practices. The Company’s external auditors, M/s. Fazal Mahmood & Co. and M/s. Muniff Ziauddin & Co., have expressed an unqualified opinion on the financial statements for the year ended June 30, 2025. The same firms have been reappointed as external auditors for FY26.

The Company maintains a streamlined organizational structure characterized by clearly defined roles, functional segregation, and appropriate delegation of authority. The organogram is structured primarily around the CFO and COO functions, with respective departments reporting accordingly, while the Executive Directors and the CEO report directly to the Board. This structure facilitates efficient decision-making and supports operational effectiveness. Mr. Khurram Javed, CEO, possesses over a decade of professional experience and holds an MBA from Coventry University. He has played a pivotal role in strengthening the Company’s human resource base by inducting qualified professionals across diverse functional areas. In addition to his role in the Company, he also serves as CEO of other group entities, including Mughal Energy Limited. He is supported by a competent and experienced management team. The senior management team includes Mr. Shakeel Ahmad, Chief Operating Officer, who brings extensive experience in strategic market positioning, sales expansion, and brand development. The Chief Financial Officer, Mr. Muhammad Zafar Iqbal, is a Fellow Member of ICAP with strong expertise in finance, taxation, and strategic planning.

During FY25, Pakistan’s long steel (rebar) sector demonstrated resilience despite a medium-to-high business risk profile driven by cyclicality, imported scrap reliance, and elevated energy costs. Annual demand remained steady at around 4–5 million tons, supported by ongoing housing construction and small-scale development activity. The Federal and Punjab governments’ sizeable allocations under the Public Sector Development Programme (PSDP) are expected to stimulate infrastructure-related steel demand in the near term. Meanwhile, the copper segment faced headwinds amid global trade disruptions, particularly due to renewed U.S.–China tariff tensions and regulatory shifts affecting scrap availability. Locally, changes in Pakistan’s Export Facilitation Scheme (EFS) influenced copper export flows. With interest rates easing to around 11% by end-FY25 (from ~22% in FY24), profitability in both steel and copper operations is expected to gradually improve, contingent on stable demand and manageable input costs. MISIL ranks among the leading long steel manufacturers in Pakistan. The Company benefits from a well-established brand, extensive dealer network, and diversified product portfolio encompassing billets, rebar, and non-ferrous ingots. This diversification supports stable demand across market segments and enhances resilience against cyclical variations. Consistent operational performance, coupled with a sustained focus on quality and efficiency, underpins MISIL’s strong position within the domestic steel industry.  For the year ended 30 June 2025, the Company reported net sales of Rs. 89.48 billion, compared to Rs. 92.42 billion in the previous year, reflecting a decline of approximately 3% year-on-year. Net external sales from the ferrous segment increased to Rs. 73.55 billion (FY24: Rs. 69.12 billion), representing growth of approximately 6%, primarily driven by improved volumes and continued operational focus on core ferrous activities. Ferrous margins showed marginal improvement, supported by better absorption of fixed costs and operational efficiencies, although commission expenses were slightly higher year-on-year. In contrast, net external sales from the non-ferrous segment declined significantly to Rs. 15.93 billion (FY24: Rs. 23.30 billion), a decrease of approximately 32%. The reduction reflects ongoing regulatory and operational challenges impacting volumes in the non-ferrous segment. Despite the lower sales base, non-ferrous margins remained broadly stable. Overall, while ferrous performance strengthened during the year, the substantial decline in non-ferrous revenues altered the sales mix, resulting in a modest contraction in consolidated revenues and some pressure on overall margins compared to the previous year. For the first quarter ended 30 September 2025, the Company’s topline clocked in at PKR 20.1 billion, indicating a steady start to the new financial year. During FY25, Mughal’s margins showed improvement over FY24. Gross Profit Margin increased to 9.1% in FY25 compared to 8.4% in FY24, reflecting better pricing discipline and improved cost absorption. Operating Profit Margin also strengthened to 7.8% in FY25 versus 7.2% in FY24, broadly in line with improved gross margins and operational efficiencies. Despite the improvement at the operating level, Net Profit Margin declined to 1.4% in FY25 compared to 2.2% in FY24. During 1QFY26, the Company's gross and net margins clocked at 17.2% and 5.0%, respectively 

During 1QFY26, Mughal’s net working capital cycle stood at 110 days, compared to 110 days at end-Jun’25 and 118 days at end-Jun’24. Inventory days improved to 59 (FY25: 72; FY24: 86), reflecting better stock management. Receivable days, however, increased to 72 (FY25: 53; FY24: 40) due to higher local ferrous sales and stronger quarter-end dispatches, while payable days rose to 21 (FY25: 16; FY24: 8). The shift in working capital dynamics was largely attributed to expanded ferrous operations and a strategic reduction in export-oriented non-ferrous activity. The Company funds its working capital through internal cash generation, sukuk placements, and short-term bank lines. As of end-Sep’25, short-term borrowings stood at PKR 26.09bln (FY25: PKR 22.8bln; FY24: PKR 24.9bln). The current ratio stood at 7.3x in 1QFY26 (FY25: 5.6x; FY24: 8.5x.) Free Cash Flows from operations (FCFO) clocked at PKR 2.76bln in 1QFY26, down from PKR 5.66bln in FY25, PKR 5.92bln in FY24, and PKR 8.24bln in FY23, reflecting increased working capital absorption and higher borrowing costs. Finance costs witnessed a slight dip; however, remained elevated at PKR 969mln (1QFY25: PKR 1.9bln; FY25: PKR 5.7bln), leading to an interest coverage ratio of 2.9x in 1QFY26 (1QFY25: 0.9x; FY25: 1.0x; FY24: 1.0x). As of Sep’25, the debt-to-equity ratio stood at 51.1% (end-Jun’25: 49.3%; end-Jun’24: 57.7%), reflecting improved leverage following fresh equity injection and reduced long-term repayment pressure. During FY25, the Company issued 9.85% right shares (30.06mn Class-C shares) at PKR 45 per share, resulting in an equity inflow of approximately PKR 1.48bln. Short-term borrowings constituted around 84.3% of total borrowings, with ongoing efforts to renew and expand bank facilities alongside exploration of additional Sukuk-based funding avenues.

Mughal has successfully issued a rated, secured, privately placed short-term Sukuk, Mughal Iron & Steel Industries Limited – PPSTS – PKR 1.5 billion, amounting to PKR 1,500 million (inclusive of a green option of PKR 500 million) in November 2025. The tenor of the instrument is nine months. The proceeds of the Sukuk are being utilized by the Company to meet its working capital requirements. The PPSTS – PKR 1.5 billion carries a profit rate of 3MK + 130 bps. Principal and profit are repayable on a quarterly basis through three instalments. The redemption schedule of the sukuk is as follows:

A first pari passu hypothecation charge over all present and future movable assets, maintained with a 25% margin against the issue amount.

The Company is required to deposit the upcoming principal and profit amounts into the Sukuk Redemption Account at least fifteen (15) days prior to the due date of each quarterly instalment.