Swat Agro Chemicals (“Swat Agro” or “the AOP”) was established in 1996 as a partnership concern under the Partnership Act, 1932, and is principally engaged in the purchase and sale of agrochemicals and allied products.

Mr. Barkat Ali, the founder of Swat Agro, entered the business in the early 1980s by importing pesticides from the UAE for use on his farms in Swat. During the 1990s, he formalized the business operations by establishing Swat Agro and commencing the commercial distribution of pesticides. Initially, Swat Agro’s distribution network was limited to Peshawar; however, it gradually expanded its geographical presence to Balochistan, Punjab, and Sindh. Over time, the business was extended through two incorporated entities, SAC and Altiga, with the AOP investing ~PKR 2.0bln in them.

The Group is engaged in the import, marketing and distribution of crop protection and nutrition products, including pesticides, insecticides, fungicides, weedicides, fertilizers, micronutrients and adjuvants. It operates through the AOP, SAC and Altiga. SAC markets these products to farmers across Pakistan through its sales team, while Altiga, based in Quetta, imports and distributes products sourced from the USA, Japan, Italy and Spain. The AOP is primarily engaged in the marketing and distribution of agricultural and public health products, including plant growth regulators. It has an extensive distribution network, structured into regions, zones, and territories, supported by six supply chain centers across the country. Its formulation and packing facility, located near Kasur, is equipped with high-quality processing units for the production and packaging of SC, EC, and granular pesticides. In addition, the AOP maintains multiple warehouses across Pakistan to facilitate efficient storage and distribution. Its head office is located in Peshawar, while its corporate office is situated in Lahore.

Swat Agro's ownership is divided among three partners, where Mr. Barkat Ali Khan holds about 50%, Mr. M. Alam Khan about 25% and Ms. Fozia Nazneen about 25%.

The ownership structure is expected to remain stable going forward, with a significant stake held by Mr. Barkat Ali Khan. Moreover, the gradual induction of the second generation into the Business is expected to further strengthen ownership stability and support continuity.

Mr. Barkat Ali Khan, the founding partner, possesses approximately three decades of professional experience in the pesticide sector. His extensive exposure to local and international markets as a dealer is expected to provide operational synergies and support the Business’s growth going forward.

The sponsors possess a sound financial standing and are considered capable of extending financial support to the Business, if required.

Swat Agro is not regulatory bounded to setup a formal Board of Directors (BoD). However, all the partners of the Business remain responsible for the operation and making pertinent decisions.

Swat Agro's partners Mr. Barkat, Mr. Alam, and Mrs. Fauzia are experienced professionals and have been involved in the Business since its inception. Mr. Barkat holds ~3 decades of experience in the pesticides sector.

The partners are assisted by two committees, namely, the Core and Tax committees, for decision-making and policy formation of Swat Agro. The Core committee comprises the CFO and Manager Finance; while the Tax committee comprises the CFO, Head of Tax, Manager Finance. These committees meet as per requirement, while no formal minutes are documented.

Dilroze Khan & Co., Chartered Accountants, are the external auditors of the Business. The firm is not QCR rated. Tt has expressed an unqualified opinion on the financial statements as of FY26. The Business has further transitioned two entities, Swat Agro Chemicals (Pvt.) Ltd. and Altiga Agri Solutions (Pvt.) Ltd., whose financial statements for FY25 were audited by RSM Avais Hyder Liaquat Nauman, Chartered Accountants, a QCR-rated audit firm. The firm has expressed unqualified opinions on the financial statements of both entities.

Swat Agro operates through four departments: Sales & Marketing, Administration, IT, and Finance & Accounts. The heads of all departments report to the Chief Operating Officer (COO), who, in turn, reports to the Chief Executive Officer (CEO).

Mr. Barkat, the CEO, possesses approximately three decades of professional experience in the local and international pesticide markets, primarily as a dealer. Mr. Wajid Gul, the CFO, has nearly two decades of overall professional experience and has been associated with the Business since 2009. The management team comprises experienced professionals with extensive industry knowledge.

The Business currently operates without formal management-level committees. As part of its ongoing corporate structuring, the establishment of dedicated management committees would help strengthen oversight, streamline decision-making, and enhance management effectiveness.

The Business prepares detailed Excel-based reports covering individual segment and product performance, which are shared with senior management on a weekly, monthly, and quarterly basis. The reporting framework may be further strengthened through the introduction of real-time performance monitoring tools to facilitate timely tracking of operational and financial performance.

Swat Agro operates a technologically advanced formulation plant certified under ISO 9001:2015 and ISO 17025:2005 standards. However, the Business lacks a formal internal audit function, which is required to strengthen internal controls and enhance monitoring.

Pakistan’s pesticides sector recorded revenue of PKR ~55.2 billion in 6MFY26, up ~5.0% YoY (6MFY25: PKR ~52.5 billion). The growth was primarily driven by higher domestic pesticide prices, which increased by ~14.3%, and a rebound in imports, despite relatively stable cotton production at ~7.05 million bales (FY25: ~7.08 million bales). In volumetric terms, pesticide imports stood at ~49,800 MT in FY26 (FY25: ~31,283 MT), while import value increased by ~37.5% YoY to USD ~213 million. Gross margins improved to ~30.6% in 6MFY26 (6MFY25: ~27.5%). Imports of base ingredients for pesticides amounted to PKR ~37,411 million in FY25 (FY24: PKR ~47,700 million). During FY26, Pakistan imported ~53.0% of its pesticides from China, followed by Germany (~6.6%), South Korea (~7.3%), Indonesia (~4.5%), the USA (~4.0%), and France (~3.7%).

The Group holds a market share of ~5% and is among the leading local players in the sector, while international players lead the sector.

The AOP’s revenue is primarily derived from fertilizers (~30%), followed by insecticides (~28%), micronutrients (~25%), household products (~10%), fungicides (~6%) and weedicides (~1%). During FY26, the AOP recorded revenue of ~PKR 3.1bln (FY25: ~PKR 7.1bln), reflecting a decline of ~57%, as trading activities shifted towards Swat Agro Chemicals (Pvt.) Limited (“SAC Pvt.”) and Altiga Agri Solutions (Pvt.) Limited (“Altiga”). SAC Pvt. recorded revenue of ~PKR 6.0bln (FY25: ~PKR 1.0bln), while Altiga’s revenue increased by ~53% to ~PKR 2.3bln (FY25: ~PKR 1.5bln). On a combined group basis, revenue increased by ~18% to ~PKR 11.4bln (FY25: ~PKR 9.7bln). Going forward, revenue growth is expected to remain modest in the near term, contingent upon recovery in agricultural demand and stabilization of input costs.

Margins reflected a mixed trend during FY26. The AOP’s gross margin improved to ~35% (FY25: ~33%), while its operating margin increased to ~22% (FY25: ~15%), supported by lower administrative expenses. At the Group level, gross margin also improved to ~36% (FY25: ~34%); however, operating margin declined to ~11% (FY25: ~13%), mainly due to higher selling and staff costs at the corporate entities.

Going forward, the sponsors are gradually shifting business operations from the AOP to the already incorporated private limited entities, SAC Pvt. and Altiga. This transition is aimed at expanding the corporate structure and supporting diversification into new business lines, including packaging plants, alongside further expansion in the real estate segment. The AOP has invested ~PKR 2.0bln in these entities (~PKR 1.0bln each).

The Group’s working capital position improved during FY26, with net working capital days declining to ~208 days (FY25: ~281 days). At the entity level, the AOP’s inventory days increased significantly to ~526 days (FY25: ~230 days), with inventory of ~PKR 2.9bln remaining against a lower revenue base. However, receivable days improved to ~78 days (FY25: ~145 days). The Group’s current ratio remained adequate at ~4.0x (FY25: ~4.1x), supported by cash and bank balances of ~PKR 344mln (FY25: ~PKR 165mln).

The AOP maintained a strong coverage profile during FY26, with interest coverage standing at ~11.9x (FY25: ~13.9x). At the Group level, interest coverage improved slightly to ~15.0x (FY25: ~14.5x), while FCFO remained broadly stable at ~PKR 1.4bln. Total finance cost declined to ~PKR 85mln (FY25: ~PKR 92mln).

The Group maintains a relatively low-leverage capital structure, with a leveraging ratio of ~9% in FY26 (FY25: ~7%). At the entity level, the AOP’s leveraging ratio stood at ~5.0% (FY25: ~8.0%), with total borrowings, including lease liabilities, of ~PKR 344mln (FY25: ~PKR 555mln), of which short-term borrowings were ~PKR 117mln (FY25: ~PKR 420mln). The AOP’s Habib Bank trade lines are interchangeable with SAC, which carried FATR of ~PKR 366mln at end-FY26. Long-term borrowings comprise only vehicle lease liabilities of ~PKR 118mln (FY25: ~PKR 92mln), with a current maturity of ~PKR 109mln (FY25: ~PKR 44mln). Going forward, the Group is expected to maintain a relatively low-leverage profile, supported by its sizeable equity base and limited reliance on borrowings.