Hadeed Pakistan (Private) Limited (“Hadeed Pakistan” or “the Company”) was incorporated in Pakistan on 06 June 2013 as a private limited company under the Companies Ordinance, 1984 (now the Companies Act, 2017). The Company commenced commercial operations in 2019. The Company’s registered office is located at 34/1, Main Peco Road, Badami Bagh, Lahore, while its corporate office is situated at 135-B, New Muslim Town, Lahore. The manufacturing facility is located at 23-Km Sheikhupura Road, Lahore.

The driving force behind Hadeed Steel is its principal sponsor, Mr. Hamid Daud, who brings nearly three decades of experience in steel trading and pipe manufacturing. The group’s journey began in 1991, when Mr. Hamid Daud and Mr. Hammad Khalid entered the steel trading business and gradually established a strong foothold in the local market. Leveraging this industry experience, Mr. Hamid expanded into pipe manufacturing in 2005, marking the group’s transition from trading to industrial operations. To further diversify into value-added steel products, the sponsors acquired land in 2007 for the development of a cold-rolled steel sheet manufacturing facility. The project was developed progressively, with the procurement of modern rolling mill and annealing equipment during 2012–2013. The Company was subsequently incorporated in 2013, while commercial operations at the manufacturing plant commenced in 2019. Soon after operations began, the Company encountered challenging market conditions stemming from the COVID-19 pandemic and import restrictions, which affected the availability of machinery, raw materials, and related inputs. Despite these headwinds, Hadeed Steel continued its operations and gradually strengthened its position in the domestic steel sector.

The Company is engaged in the manufacturing of cold-rolled steel sheets and coils, serving diverse industries including automotive, construction, engineering, and home appliances. The production process at Hadeed Pakistan is fully integrated and includes pickling (to remove surface impurities), cold rolling (for fine thickness control), annealing (for improving ductility), temper rolling (to enhance mechanical strength and surface finish), slitting and cutting (to customize dimensions), and final packing and loading for dispatch. Hadeed Pakistan operates a state-of-the-art facility with an annual rolling capacity of 300,000 metric tons.

The Company is owned 100% by Hamid Daud and family members. Major shareholding of having stakes higher than 5% resides with the following:
1.      Hamid Daud = 17.17%
2.      Hammad Khalid = 13.55%
3.      Hamza Daud = 12.84%
4.      Zaid Khalid = 8.74%
5.      Saad Khalid = 8.74%
6.      Abdul Hayee Mughal = 5.83%
7.      Hafiz Aziz Ahmad = 5.63%

The Company’s operations are supported by the sponsors’ longstanding presence in the steel industry and their established relationships across industrial and financial sectors, which facilitate the smooth functioning of the business. Incorporated in 2013, Hadeed Pakistan commenced commercial operations in 2019 and has since gradually strengthened its market presence. The second generation of the sponsoring family is actively involved in management through key positions, including Director Commercial & Corporate and GM Technical, reflecting continuity in leadership. Shareholding remains concentrated within the family; however, the sponsors are not associated with any large or widely established business group.

The sponsoring family possesses over three decades of experience in the steel sector, under the leadership of Mr. Hamid Daud and Mr. Hammad Khalid. The sponsors diversified into pipe manufacturing in 2005, followed by the acquisition of land in 2007 for the development of a cold-rolled steel sheet manufacturing facility. Over time, additional family members, including Mr. Zaid Khalid and Mr. Saad Khalid, joined the business, strengthening the Company’s expansion into manufacturing operations. Hadeed Pakistan benefits from an experienced board and management team with relevant industry expertise. A key competitive advantage of the Company is its proprietary 6-high cold rolling mill, which is unique among local CRC manufacturers. The technology provides enhanced control over the work roll during the rolling process, resulting in superior surface finish, improved flatness, and tighter thickness tolerances compared to conventional 4-high mills, thereby supporting higher product quality and operational efficiency.

The Company is primarily equity financed, with minimal long-term debt on its books, reflecting a conservative capital structure. The sponsors possess substantial industry-specific expertise in the Company’s line of business and have demonstrated adequate financial strength to support operations, as this remains their core business venture.

Hadeed Pakistan (Private) Limited’s Board consists of founding family members and experienced professionals who play an active role in the Company’s strategic direction and operational management. The Company is led by its Chief Executive Officer, Mr. Hamid Daud, along with other key board members including Mr. Hammad Khalid, Mr. Saad Khalid, Mr. Zaid Khalid, and Mr. Hamza Daud. Each of these members holds a significant ownership stake of more than 5% in the Company, reflecting strong sponsor commitment and alignment with the Company’s long-term objectives. The governance structure is predominantly family-led, with executive responsibilities concentrated among the sponsoring family members. This structure provides continuity in leadership and benefits from the sponsors’ extensive industry experience. However, the absence of independent representation on the Board indicates potential scope for further strengthening governance practices and enhancing oversight mechanisms.

Hadeed Pakistan (Private) Limited is governed by an experienced board and executive leadership team comprising Mr. Hamid Daud, Chief Executive Officer; Mr. Hammad Khalid, Founder and Chief Operating Officer; Mr. Saad Khalid, Director Administration & Human Resource; Mr. Zaid Khalid, Director Strategy & Project Planning; and Mr. Hamza Daud, Director Commercial & Corporate Affairs. Collectively, the board and executive management provide strategic direction and oversight for the Company’s operations, business expansion, and long-term growth objectives under a family-led governance structure. All board members have remained associated with the Company since 06 June 2013, except for Mr. Saad Khalid, who joined the board on 28 October 2023.

The board meets at least once a month to discuss the operational and market matters at length, which usually include:
·       International HRC market and booking status
·       Market update regarding finished product sale
·       Inventory situation and material sourcing timelines
As a family-owned and operated business and no independent director on the board, there’s a risk of overlapping management and ownership roles. The governance framework is still in its early stages and requires further development.

The external auditors of the company, KPMG Taseer Hadi & Co, have expressed an unqualified opinion on the financial statements of the company as of 30th June 2025. The firm is placed in category ‘A’ of the SBP panel of auditors and rated as a QCR firm.

Hadeed Steel follows a family-driven, flat organizational structure, led by CEO and Chairman Mr. Hamid Daud. Key roles are held by family members, including the COO, Director Strategy, Director HR/Admin, and Director Commercial. Daily operations are managed directly by the sponsors. The structure is evolving, with professional systems like ERPNext and formal committees being introduced to strengthen governance.

Mr. Hamid Daud, the founder of the Company, serves as the Chief Executive Officer and Chairman of the Board. With over three decades of experience in the steel industry, his extensive market knowledge and longstanding industry relationships enabled the Company to establish its presence in a highly competitive market dominated by well-established players. These relationships also facilitated early business development and helped cultivate strong ties with financial institutions and banking partners, supporting the Company’s operational and financial growth. Mr. Zaid Khalid, a graduate of Minnesota State University, oversees the Company’s strategy, technology, and planning functions. Mr. Hammad Khalid serves as the Chief Operating Officer and is responsible for managing operational activities. Another family member Mr. Saad Khalid leads the Administration and Human Resources function as Director Admin & HR, while Mr. Hamza Daud serves as Director Commercial & Corporate, overseeing commercial and corporate affairs. Together, the management team brings a blend of industry experience and operational expertise to support the Company’s ongoing growth and strategic direction.

As a family-owned business with a relatively flat organizational structure, where the sponsors oversee the day-to- day operations, Hadeed would benefit from establishing a formal committees structure with independent directors involved.

Being a specialized industry of Cold-Rolling steel there was no off the shelf specific ERP available in the market. Due to this above-mentioned reason a custom build ERP was introduced which has kept evolving over periods. Few months back ERPNext software was selected after careful research and consideration, it is of industrial strength and is being used by major businesses around the globe.
The existing ERP system is based upon Microsoft .NET framework and SQL server. By the next financial year Hadeed plans to shift its business fully to ERPNext with currently the human resource management system have been implemented and currently the process of deploying Purchase and Store management software.

The control environment is still evolving, with no internal audit department. The company has obtained ISO 9001, 14001 and 45001 certifications. There exist 3 committees which include management committee, HR and HRC procurement committee. The company is a green field project, which is a new venture that starts from scratch, building on a previously undeveloped site or with a completely new system or infrastructure, without any prior existing structure or processes, due to this it takes time in true implementation of a controlled environment. For FY2025, the average number of employees during the year increased to 398 from 366 in the previous year.

The steel industry in Pakistan is broadly categorized into three major segments based on product type: (i) long steel products, including billets, rebars, and beams; (ii) flat steel products, comprising Hot Rolled Coils (HRC) and Cold Rolled Coils (CRC); and (iii) tubes and pipes. Long steel products account for the largest share of the industry, contributing approximately 55–65% of total steel consumption, followed by flat steel products at around 30–35%, while tubes and pipes contribute nearly 8–10%. Demand for flat steel products is primarily driven by downstream industries such as automobiles and motorcycles, consumer durables, pipes, engineering, and construction materials. The local CRC market currently consists of three major players: International Steels Limited (operational since 2007, Karachi), Aisha Steel Mills Limited (operational since 2005, Karachi), and Hadeed Pakistan (Pvt.) Limited (operational since 2019, Lahore). The CRC industry has faced challenging conditions in recent years due to subdued economic growth, elevated inflation, high interest rates, and volatility in imported raw material prices and exchange rates, leading to a significant contraction in market demand. However, with improving macroeconomic indicators, easing monetary conditions, and relative exchange rate stability, the sector has started to show gradual signs of recovery during FY26 and FY25. Despite installed industry capacity of nearly 2 million tons, actual CRC demand remains substantially lower at approximately 330,000–350,000 tons, resulting in persistent underutilization and intense pricing competition across the sector. In terms of market share, Hadeed Pakistan has emerged as a significant player, accounting for nearly 30% of local CRC production, followed by International Steels Limited at approximately 29% and Aisha Steel Mills Limited at around 18%, while imported CRC products continue to capture roughly 23% of the domestic market.

The CRC sales trend over the past several years highlights a notable shift in market dynamics, with Hadeed Pakistan emerging as a strong competitor within the domestic market. Since commencing operations in FY19, the Company has demonstrated consistent growth in sales volumes and market share. The Company has particularly strengthened its position during recent years despite challenging industry conditions marked by weak economic activity, elevated financing costs, and subdued demand. Hadeed benefits from a significant geographic advantage as the only CRC manufacturer located in Punjab, enabling it to cater efficiently to industrial customers across the northern region of the country and capture a substantial share of the regional market. In addition to its geographic positioning, Hadeed possesses a technological edge through its proprietary 6-high cold rolling mill, which is unique among local CRC producers. The technology offers superior control during the rolling process, resulting in improved surface finish, enhanced flatness, and tighter thickness tolerances compared to conventional 4-high mills. However, competing players continue to maintain certain advantages through broader product portfolios and their strategic presence in the southern region, providing relatively easier access to export markets and port-based logistics.

In the nine months ended March 2026 (9MFY26), Hadeed reported net sales of PKR 14.881 billion, reflecting a marginal increase from PKR 14.552 billion in the same period last year (SPLY). However, it is important to note that all sales during 9MFY26 were generated from the local market, with no exports recorded, whereas exports to Afghanistan contributed to sales during the SPLY.

Gross profit margin for 9MFY26 stood at 8.7% (FY25: 8.2%; 9MFY25: 8.8%), reflecting an improvement over the full-year FY25 level, though remaining slightly below the corresponding period last year due to elevated raw material costs. Operating profit margin stood at 7.6% compared to 7.8% in 9MFY25, while net profit margin remained largely stable at 2.8% (9MFY25: 2.9%). Finance cost as a percentage of sales declined to 1.9% (FY25: 2.5%; FY24: 3.1%), supported by lower borrowing costs amid easing interest rates. Despite moderate revenue growth of 2.2% from the SPLY, the Company maintained profitability and operational efficiency. The recent completion of a 2 MW solar installation is expected to provide additional relief against rising energy costs, which remain a key challenge given the energy-intensive nature of operations. Furthermore, the Company’s location in Lahore limits export competitiveness relative to Karachi-based peers due to the lack of direct port access. On the positive side, Hadeed’s planned expansion into galvanization is expected to diversify its product portfolio, enhance value addition, and support future growth prospects.

Hadeed Pakistan (Pvt.) Limited, despite its rapid growth in the Cold Rolled Coil (CRC) segment, faces certain sustainability challenges. A relatively small number of key dealers contribute a significant portion of total sales; however, the Company’s customer base has continued to expand over the years, supporting gradual diversification. In addition, Hadeed remains fully reliant on imported Hot Rolled Coils (HRC) sourced primarily from Japan and China, exposing the Company to fluctuations in international steel prices, foreign exchange volatility, and global supply chain risks. Although raw material availability remained uninterrupted during the recent USA-Iran conflict, as the Company’s suppliers do not primarily rely on the Strait of Hormuz shipping route, procurement costs increased due to higher freight, insurance and shipment expenses, that might place additional pressure on margins and operational stability.

Hadeed manages its working capital requirements primarily through internally generated cashflows and short-term borrowings. Gross working capital days improved to 85 days as of March 2026, compared to 93 days in June 2025, reflecting better overall working capital management. Inventory days declined to 59 days (Jun-25: 73 days), indicating improved inventory planning and stock control. Meanwhile, trade receivable days increased to 26 days from 20 days in June 2025, primarily due to relatively extended credit terms offered to support the expansion of the customer base and sales volumes towards manufacturers instead of distributors. As a result, the customer mix shifted to 50% manufacturers and 50% distributors, compared to 30% manufacturers and 70% distributors previously. Overall, the Company’s working capital cycle remains manageable, supported by adequate liquidity levels.

Coverage metrics improved from June 2025 to March 2026. EBITDA/Finance Cost increased to 4.6x (Jun-25: 3.4x), while FCFO/Finance Cost declined slightly to 3.1x (Jun-25: 3.4x). Debt payback improved to 0.2x (Jun-25: 0.1x), reflecting strengthened repayment capacity. Interest payable days increased to 51 days (Jun-25: 46.1 days), indicating relatively extended payment terms from creditors and improved liquidity management. Although FCFO declined to PKR 906 million in March 2026 from PKR 1,700 million in March 2025, overall coverage levels remained adequate.

Capitalization metrics continued to improve as of March 2026 compared to June 2025, reflecting a gradual strengthening in the Company’s capital structure.Total borrowings to capitalization declined slightly to 43.7% (Jun-25: 46.3%), indicating a relatively lower reliance on debt financing compared to the previous year. Short-term borrowings continued to dominate the debt profile, constituting approximately 95.6% of total borrowings as of March 2026 (Jun-25: 95.3%). The Company also benefited from a notable decline in its average borrowing cost, which reduced to 11.3% in March 2026 from 14.3% in June 2025, supporting lower finance costs during the period. Meanwhile, interest/markup payable days increased to 51 days (Jun-25: 46.1 days), indicating relatively improved liquidity management and enhanced payment flexibility.