Warble (Pvt) Limited ('the Company’) is a private limited company incorporated in 1995 under the Companies Ordinance 1984 (now the Companies Act 2017).

Allahdin Group of Companies (“the Group”) is recognized as one of the prominent players in the pesticide sector. The Company represents the Group’s second business venture. While the sponsoring family was initially engaged in the construction business, one of the siblings possessed extensive experience in the agriculture industry, which provided the technical knowledge and expertise required for the Group’s entry into the agrochemicals sector.

The Company's activities involve imports, formulations, manufacturing & marketing of all kinds of pesticides (Insecticides, Herbicides, Fungicides, Insect Growth Regulators), fertilizers and micronutrients (liquid & granules), plant growth regulators, seeds of different field crops & vegetables, etc. The Company's head office is in Lahore, and the formulation facility is at Industrial Estate Multan, which is equipped with Chinese machinery and technology. The Company operates and sells its products through its franchise network titled Agro-Mart.

The Company's ownership transitioned to the new generation. Mr. Masood ur Rehman possesses a majority shareholding of ~47%, followed by Mr. Zain Ifterkhar with ~44%, Mr. Atta ur Rehman with ~7%, and Ms. Ghazala Ghazni holds ~2% stake of the Company.

The Company’s ownership remains concentrated within the sponsoring family, which provides continuity and stability in strategic direction and long-term decision-making. Such ownership structures exist for established private sector groups of similar scale in Pakistan and often enable aligned interests and efficient decision-making. As one of the oldest and pioneering groups in the industry, the Company has established a strong presence in the agricultural inputs sector, supporting a wide variety of crops across Pakistan.

The Company has developed a strong presence in Pakistan’s agriculture sector by leveraging modern technologies and delivering specialized solutions to support farmers nationwide. The Group is backed by a team of experienced professionals possessing strategic vision, industry expertise, and diverse skill sets, which collectively strengthen the Company’s operational efficiency and long-term strategic direction.

The Group’s history dates back to the 1990s, with diversified business interests spanning the agriculture, bottling, and pharmaceutical sectors. Given its established presence and financial strength across multiple industries, the Group is expected to extend support to the Company if the need arises.

The control of the Company vests with a three-member Board dominated by the sponsoring family with two Executive Directors and one Non-Executive Director.

All members have been with the organization for a long time. Mr. Masood Ur Rehman possesses significant knowledge, expertise, and skill set and has over a decade of experience in the pesticide sector. He is the Chairman & Chief Executive of the Company.

The Board meets regularly to deliberate on key strategic and operational matters. While formal Board-level committees have not yet been fully constituted, their establishment was approved at the most recent Board meeting and implementation is currently underway. In practice, governance oversight is exercised through structured monthly meetings of key stakeholders, increasing to bi-monthly during peak periods, ensuring that all material matters are substantively reviewed. The Group is further supported by experienced industry professionals, with over 35 years of sector experience and long-standing association with the AllahDin Group, contributing to informed decision-making and operational continuity.

The External Auditors of the Company, M/S. HLB Ijaz Tabussum & Co., Chartered Accountants, a "B" category QCR rated firm, expressed an unqualified opinion on financial statements for the period ended FY25.

Business operations are organized into four key functional areas: (i) Sales & Marketing, (ii) Finance, (iii) HR & IT, and (iv) Taxation & Accounts. All functional heads report directly to the Chief Executive Officer (CEO), who serves as the ultimate decision-maker and oversees the Company’s overall strategic and operational direction.

Mr. Masood Ur Rehman is the CEO of the Company and possesses the required knowledge, expertise, and skillset. He has been with the business for a long time and is assisted by a team of professionals.

Management meetings are held on an as-needed basis, with senior management actively contributing their insights to the decision-making process. Ch. Iftikhar Nazir serves as the ultimate authority for key strategic and operational decisions. The Company currently does not have formally established management committees.

The Company has developed an in-house ERP system incorporating key modules such as inventory, sales & marketing, finance, procurement, and HR, enabling effective operational monitoring and the generation of periodic management reports (daily, weekly, and monthly) to support informed decision-making. Building on this existing framework, the Group has recently entered into a formal agreement with Telenor for the full-scale implementation of the Odoo ERP platform across its operations. As an internationally recognized, enterprise-grade system, Odoo’s deployment, supported by Telenor, reflects a transition towards more robust, institutionalized management information systems, enhancing data integration, reporting capabilities, and overall operational visibility.

The Company’s internal control environment is supported by its ERP-based processes, which facilitate monitoring across key functional areas including finance, procurement, inventory, and sales. The ongoing implementation of the Odoo ERP system, under a formal arrangement with Telenor, represents a significant step towards strengthening internal controls through improved system standardization, process automation, and enhanced audit trails. This initiative reflects a structured investment in operational infrastructure and is expected to further reinforce governance, transparency, and control effectiveness across the organization.

Pakistan’s agriculture sector contributes roughly 23–25% to national GDP and remains a key driver of economic activity, with strong reliance on agrochemicals to protect crops and improve yields. The agrochemicals market in Pakistan was valued at about USD 3.40 billion in 2025 and is projected to reach around USD 3.59 billion in 2026, reflecting steady expansion driven by rising crop protection needs and adoption of improved farming practices.Demand for pesticides, herbicides, and fertilizers continues to grow due to frequent pest outbreaks, increasing food demand, and efforts to enhance agricultural productivity.The crop protection chemicals segment alone is estimated at USD 251 million in 2025 and is expected to reach about USD 289 million by 2030, indicating gradual market expansion. Despite the positive demand outlook, the sector remains highly import dependent, with a significant portion of active ingredients and raw materials sourced from international markets. This exposes local manufacturers to exchange-rate volatility and supply-chain disruptions. Going forward, industry growth is expected to be supported by increasing adoption of modern agricultural technologies, improved irrigation systems, and digital farming practices, which are gradually transforming Pakistan’s agricultural landscape.

The Group maintains a strong market position and well-established brand presence within the industry. The Company has an installed production capacity of 12,000 metric tons, with production levels reflecting stable operational utilization of the available capacity.

The Company reported a stable topline of approximately PKR 2,908 million in FY25, reflecting a marginal increase of ~0.7% YoY (6MFY26: ~PKR 1,313 million; FY24: ~PKR 2,887 million; FY23: PKR 2,692 million), following a steady growth trend in prior years. The moderation in revenue growth during the period primarily reflects a deliberate, management-led rationalization of the bulk sales channel aimed at streamlining internal operations, rather than any weakening in underlying demand or competitive positioning. The Company maintains a well-integrated distribution network of over 750 franchises nationwide, supporting extensive market reach. Revenue performance was largely supported by price adjustments across finished products. Its broad product base across multiple segments enables diversification of revenue streams, further reinforced by ongoing product innovation, including the recent introduction of locally produced biofertilizers positioned as a cost-effective alternative to conventional urea- and DAP-based fertilizers. With the bulk sales channel now reinstated, revenue growth is expected to gradually strengthen, supported by volume normalization; however, the pace of recovery remains subject to execution and prevailing market conditions.

During FY25, the Company’s gross profit margin improved to ~20.7% (FY24: ~18.5%), primarily driven by higher selling prices. Consequently, the operating margin increased to 10.2% in FY25 and further strengthened to 11.1% in 1HFY26. Despite this improvement at the operating level, net profitability remained constrained, with the net profit margin declining to 2.4% in FY25, mainly due to higher finance costs and taxation. The rise in finance costs is attributable to increased borrowings to support strategic inventory buildup, including the Group’s proactive xylene import position, reflecting a deliberate, asset-backed working capital strategy rather than an underlying deterioration in cost structure. The Company’s profitability profile showed improvement in 1HFY26, with the net profit margin recovering to 3.9%.

Management aims to sustain cost leadership while reinforcing market discipline through a combination of channel diversification and institutional engagement. Core initiatives include farmer registration programmes, whereby pesticides are provided against crop buyback arrangements (currently in cotton and wheat), alongside expansion into the wholesale market to support volume-driven growth. In parallel, the Group has entered into a supply agreement with ATF (Pvt.) Limited, the agricultural subsidiary of JDW Group, for the provision of agrochemical inputs to its sugarcane operations, with orders already contributing to current revenues. This arrangement introduces an institutional counterparty with relatively stronger credit quality, enhancing the overall receivables profile. The Group is also launching a structured farmer input programme in collaboration with the National Rural Support Programme (NRSP) for the Rice Season 2026 cycle, incorporating a crop buyback mechanism that is expected to improve payment visibility and working capital dynamics, with potential for national scale-up. Furthermore, the bulk sales channel has been reinstated following a deliberate pause to streamline internal systems and governance processes, and is expected to support recovery in topline growth towards historical levels, subject to effective execution and market conditions.

As of FY25, the Company’s net working capital cycle remained elevated at ~221 days, compared to ~205 days in FY24 and ~183 days in FY23, indicating a relatively longer duration of funds tied up in operations. This was primarily driven by higher working capital requirements, particularly on the receivables side. Inventory days improved to ~114 days in FY25 (FY24: ~126 days), reflecting relatively faster turnover, with further improvement observed in 1HFY26 as inventory days declined to ~105 days. Meanwhile, trade receivable days increased to ~156 days in FY25 from ~137 days in FY24, indicating extended collection cycles associated with the dealer-credit model. Notwithstanding this, the receivables profile is expected to gradually strengthen with the inclusion of institutional counterparties, following the commencement of supply arrangements with ATF (Pvt.) Limited (JDW Group), which introduces relatively higher-quality receivables compared to the traditional channel. In addition, trade payable days declined to ~49 days in FY25 from ~58 days in FY24, reflecting quicker settlement with suppliers and a reduced payable cushion. Consequently, the net working capital cycle stood at ~223 days in 1HFY26, remaining elevated relative to historical levels and underscoring the need for continued improvement in receivables management and overall working capital efficiency. Looking ahead, the initiation of a structured farmer input programme in collaboration with the National Rural Support Programme (NRSP), incorporating crop buyback arrangements, is expected to improve payment visibility and support gradual normalization of the working capital cycle over time, subject to successful execution.

Warble maintains a satisfactory liquidity profile, primarily supported by Free Cash Flow from Operations (FCFO), which increased from ~PKR 268mln in FY24 to ~PKR 305mln in FY25. The Company’s liquidity coverage remained broadly stable, as the improvement in FCFO offset the rise in finance costs to ~PKR 148mln in FY25, compared to ~PKR 126mln in FY24. Consequently, the interest coverage ratio (FCFO / Finance Cost) remained steady at 2.3x in both FY25 and FY24, indicating the Company’s consistent ability to adequately service its interest obligations. Going forward, the anticipated improvement in sector dynamics is expected to further strengthen the Company’s coverage indicators.

Warble maintains a moderately leveraged capital structure with a leverage ratio of 35.4% in FY25 (FY24: ~32.6%). The ratio has increased slightly due to increased total borrowings reported at ~PKR 1,303mln (FY24: ~PKR 1,115mln). At the same time, the equity grew and stands at ~PKR 2,378ln (FY24: ~PKR 2,309mln) due to profit accumulation. As of 6MFY25, the leverage ratio improved and was reported at ~34.4%, with total borrowings declining to ~PKR 1,271mln and equity rising to ~PKR 2,429mln.