Infralectric (Pvt.) Limited ('Infralectric' or 'the Company') was incorporated as a private limited company on December 13, 2021, under the Companies Act, 2017. The Company is registered with the Pakistan Engineering Council under Category C1, effective Aug 13, 2026, permitting it to undertake engineering and infrastructure-related projects within the prescribed regulatory scope. As a non-listed entity, the Company does not carry the disclosure obligations applicable to publicly traded firms but remains subject to the oversight of the Securities and Exchange Commission of Pakistan. The legal framework defines the rights and responsibilities of shareholders and management through a structured corporate governance mechanism. Given its private ownership, strategic decision-making remains concentrated within the board and principal stakeholders. The Company's registered and principal office is situated in Islamabad.

Infralectric was established in December 2021 with a founding mandate to deliver structured energy infrastructure solutions to Pakistan's telecommunications sector. In its earliest phase, the Company operated under foundational lease-based arrangements, building an initial tower coverage portfolio and establishing tripartite financing relationships with leading financial institutions. The Company's growth trajectory has been primarily organic, anchored on contract-driven expansion rather than acquisition-led consolidation. A defining milestone occurred during FY24, when the Company's revenue recognition remained constrained due to the deferred nature of lease arrangements under applicable accounting standards, with income principally derived from survey services. The subsequent FY25 period marked a transformational inflection point as lease contracts began meeting applicable revenue recognition criteria, resulting in a step-change in reported revenues. Growth capital has been mobilized through structured tripartite financing, combining institutional debt secured against MNO contracts with equity contributions from the sponsor ecosystem. The Company's sponsor, SC Technologies Global (Pvt.) Limited (SCT), brings over a decade of experience in telecom infrastructure, providing institutional credibility and access to established operator relationships that have underpinned Infralectric's rapid early-stage expansion. The affiliation with Brillanz Group provides further organizational and financial continuity across the Company's development phases.

Infralectric operates from its Islamabad-based facility, delivering sustainable energy infrastructure solutions exclusively to Pakistan's telecommunications sector. Its core operational model is structured around an Energy-as-a-Service (EaaS) framework that enables Mobile Network Operators (MNOs) to convert capital expenditure on energy infrastructure into long-term operational expenditure through seven-year contracts. The Company's tripartite operational framework spans three structured financing models: Asset Lease, Vendor Finance, and Chauffage structures. Site deployment integrates solar components and lithium battery systems to replace or supplement diesel-powered energy supply, enhancing energy reliability while reducing operational costs and carbon emissions for clients. As of Jun'26, the Company maintains an operational footprint of over 2700+ telecom towers. Technology integration is central to the operational proposition; the Company leverages data analytics, artificial intelligence, cloud computing, anti-theft mechanisms, and Internet of Things capabilities through its associated entities Softoo and Cratus Technologies for real-time monitoring, predictive maintenance, and demand-side optimization. The Company's liability exposure is structurally limited to warranty claims, which are further secured through back-to-back agreements with Original Equipment Manufacturers. Infralectric's commercial relationships include a seven-year framework agreement with Telenor Pakistan and contracts with Ufone, providing a degree of client diversification within Pakistan's four-operator telecom market. The project portfolio is expected to deliver significant reductions in diesel consumption across the covered tower base. Through its associated entity Cratus, the Company extends its value chain into passive infrastructure manufacturing, further strengthening its integrated service proposition.

Infralectric (Pvt.) Limited is a privately held company. Mr. Muhammad Bilal Qureshi, Co-Founder and CEO, holds the largest stake of 48%, followed by Mr. Abdul Rehman Atif Qureshi, with 32%, SC Technologies Global (Pvt.) Limited (SCT) with 15%, and Ms. Ayla Majid, Co-Founder and Director of Strategy, with 5%. The remaining 1% is held by Mr. Sohaib Ashraf and Mr. Salman Ahmad. Effective control over the Company's strategic direction is primarily exercised by the founding shareholders, led by Mr. Muhammad Bilal Qureshi as the largest shareholder and CEO, while SCT retains a strategic institutional stake.

The stability of the Company's ownership is inherently reinforced by its business model architecture, which is organized around long-term lease-backed contracts and tripartite financing agreements, creating structural alignment between shareholders, lenders, and clients. The Company adheres to a board-approved debt policy that restricts borrowings exclusively to arrangements executed under tripartite agreements, providing a governance-embedded discipline that limits financial risk emanating from unconstrained leverage. The sponsor ecosystem, comprising SCT and Brillanz Group, has demonstrated consistent commitment to the Company's growth, with SCT targeting additional equity injections as the project portfolio expands. The depth of founder involvement across multiple affiliated entities suggests a high degree of sponsor continuity in the near to medium term.

The Company's leadership and sponsor ecosystem exhibit a well-established track record in telecom infrastructure, structured finance, and sustainable energy deployment in Pakistan. SC Technologies Global, as the sponsor, brings over a decade of experience in critical telecom infrastructure and maintains established partnerships with leading MNOs and global original equipment manufacturers. Brillanz Group's diversified portfolio, which includes Softoo, Cratus Technologies, and Thunder AI., reflects the sponsor's capacity to operate across complementary technology, software, and energy verticals. Mr. Bilal Qureshi, as Co-Founder and CEO, has led Brillanz and SCT for over a decade, demonstrating the ability to scale technology ventures and integrate sustainable infrastructure with digital innovation. The Company's success in securing seven-year framework agreements with major MNOs such as Telenor Pakistan and Ufone reflects the management's capability to structure complex long-term contracts and navigate the regulatory and commercial demands of the telecom sector.

The financial strength of Infralectric is underpinned by its established and growing contracted portfolio, which provides visibility on recurring cash inflows. The Company currently operates a running portfolio of 2,700+ sites, while its total contracted portfolio exceeds 3,700 sites, reflecting a sizeable and scalable business base. The scale and recurring nature of these contracts support financial stability, enhance cash flow visibility, and provide a stable platform for sustained business growth. In addition, the sponsor's track record of equity injections into Infralectric's structured transactions, including validated cash consideration against future share issuances under tripartite agreements, demonstrates the sponsoring group's willingness and capacity to provide financial support, if required.

The Board of Directors of Infralectric currently comprises five members, following the recent induction of an independent director, Mr. Salman Ahmad, which has strengthened the Company's governance framework. The current board composition includes:

1. Mr. Bilal Qureshi (Co-Founder & Chief Executive Officer)

2. Ms. Ayla Majid (Co-Founder & Director of Strategy)

3. Mr. Abdullah Saleh (CFO, Company Secretary & Director)

4. Mr. Sohaib Ashraf (Director Finance)

5. Mr. Salman Ahmad (Independent Director).

The addition of an independent director enhances the board's independence and objectivity in strategic oversight and decision-making. While, as a private limited company not listed on the PSX, the Company is not subject to the mandatory independent director requirements applicable to listed entities under the Code of Corporate Governance, the appointment reflects management's commitment to strengthening corporate governance practices beyond regulatory requirements

Mr. Bilal Qureshi, Co-Founder and CEO, is a practitioner-entrepreneur with extensive expertise in technology commercialization, energy infrastructure development, and digital transformation. He has led both Brillanz and SC Technologies for over a decade, during which he has been involved in scaling multiple technology ventures, including Thunder, Softoo, and Solar AI, thereby bringing cross-sector integration experience to the board. Ms. Ayla Majid, Co-Founder and Director of Strategy, is a recognized practitioner in sustainable finance, green energy transition, and corporate governance. She has held the position of Global President of the Association of Chartered Certified Accountants, becoming the first individual from Pakistan and South Asia to do so, and brings over 20 years of experience in financial strategy, ESG framework design, and climate-focused investment policy. Mr. Abdullah Saleh, Director, CFO & Company Secretary and Mr. Sohaib Ashraf, Director Finance, both of whom are ACCA-qualified professionals with a combined experience of 21 years,ensuring disciplined financial management, compliance oversight, and reporting integrity within the lease-intensive business model. Mr. Salman Ahmad, the recently inducted Independent Director, serves as Global Head of Macro and Strategic Asset Allocation at Fidelity International. He previously held senior investment leadership roles at Lombard Odier Investment Managers and Goldman Sachs International. He holds a PhD in Economics and Finance from the University of Cambridge and an undergraduate degree from the Lahore University of Management Sciences (LUMS), Pakistan. His extensive global experience in macroeconomics, strategic asset allocation, and international capital markets enhances the Board's independent oversight and strengthens its expertise in investment strategy, risk management, and financial governance. Collectively, the Board possesses a diverse blend of expertise spanning technology, energy infrastructure, finance, global investment management, sustainability, and corporate governance.

The Board has established four board-level committees to strengthen governance effectiveness and facilitate focused oversight across key operational and strategic areas. These include the 1. Audit, Finance, Investigation, Financial Risk Management and Control Committee; 2. the Human Resource, Legal and Miscellaneous Matters Committee; 3. the Procurement Committee; and 4. the Risk Committee. Through these committees, the Board delegates detailed review and monitoring responsibilities while retaining overall accountability for strategic direction and governance. The committee framework enhances the effectiveness of board deliberations by providing structured oversight of financial reporting and internal controls, human capital and legal matters, procurement governance, and enterprise-wide risk management, thereby supporting informed decision-making and reinforcing the Company's governance framework.

Infralectric's financial statements are audited by A.F. Ferguson and Co., a firm classified as SBP-A, Big 4 affiliated, and QCR-rated, representing a high-quality external audit engagement. The most recent audit opinion issued on the financial statements for the year ended June 30, 2025 was unqualified, reinforcing the credibility and integrity of the Company's financial disclosures. The financial statements are prepared in accordance with applicable accounting standards for private entities, with lease transactions recognized under the relevant standards governing lease accounting, which has had a material impact on the revenue and liability presentation across review periods.

Infralectric's organizational structure is designed around a centralized decision-making model, with strategic authority vested in the CEO and cascaded through functionally specialized leadership. The structure facilitates rapid internal coordination and functional integration across finance, project delivery, sales, and technology functions. Governance discipline is reinforced through the four board-level committees, which provide structured oversight over audit and financial risk, human resources, procurement, and enterprise risk management. The Company's internal architecture is operationally complemented by the broader ecosystem of SC Technologies and its affiliated entities, which contribute domain expertise, cross-functional synergies, and continuity of technical capability. This interconnected but internally coherent design supports scalable deployment without necessitating proportional additions to the organizational overhead, and reflects a model engineered for institutional agility as the business scales within a complex and technically demanding sector.

The finance function at Infralectric is co-led by Mr. Abdullah Saleh, CFO & Company Secretary, and Mr. Sohaib Ashraf, Director Finance, both of whom are ACCA-qualified professionals with a combined experience of 21 years, supporting disciplined financial management, compliance oversight, and reporting integrity within the lease-intensive business model. The broader management team is further strengthened by Mr. Salman Khalili, SVP – Commercials & Business Growth, Brillanz Group, who brings around 17 years of professional experience, including senior-level exposure across the energy and telecommunications sectors, and holds an educational background from Bahria University. Mr. Tahir Zuberi, VP Commercials, Infralectric, is an ACCA-qualified professional with extensive commercial and business development experience, supporting the Company's customer relationships and growth initiatives. Key-person concentration risk is considered moderate, given that Mr. Bilal Qureshi, as CEO, holds simultaneous leadership roles across affiliated entities and remains central to the strategic and relationship dimensions of the business. Formalized succession planning arrangements have not been disclosed; however, the depth of the senior management team, supported by dedicated finance and commercial leadership and the broader sponsor ecosystem, provides a partial buffer against single-point executive dependency.

Management's execution track record reflects meaningful progress, with the Company having successfully transitioned from an early-stage, pre-revenue profile to a fully operational lease-generating entity, validating the commercial maturation trajectory articulated during the prior review cycle. Operationally, the Company has expanded its tower coverage to over 2,700+ completed sites, with a substantial pipeline remaining under active deployment, demonstrating execution capacity at scale. The integration of AI-driven predictive maintenance, IoT-enabled optimization, and cloud-based asset monitoring reflects management's commitment to leveraging technology for operational resilience and client-side cost efficiency. The structured tripartite financing model continues to be executed within the disciplined parameters of the board-approved debt policy, demonstrating adherence to the governance framework articulated at inception. Management has maintained constructive relationships with key MNO counterparts while progressing additional contract execution, consistent with the stated growth strategy.

Infralectric's management information systems framework is currently commensurate with the Company's operational scale, providing a functional base for core financial reporting, contract tracking, and operational monitoring. Advanced digital capabilities are embedded within the operational model through associated platforms that support real-time site monitoring, AI-driven predictive maintenance, and IoT-enabled energy optimization. These technological capabilities, while primarily client-facing, provide the management team with data-driven insights relevant to asset performance and contractual obligation management. As the Company's portfolio expands and operational complexity grows with additional tower deployments, the ongoing enhancement of internal management reporting systems, variance analysis, and financial planning infrastructure will be increasingly important to maintaining governance quality and supporting agile decision-making.

Infralectric's control environment reflects a structured and evolving approach to oversight and accountability. The four board-level committees provide formalized layers of independent review covering financial integrity, procurement governance, and enterprise risk. The engagement of A.F. Ferguson and Co. as external auditors provides an independent validation mechanism for financial disclosures. The Company's adherence to a board-approved debt policy restricting borrowings to tripartite agreement-linked arrangements represents a codified risk management control that limits financial leverage concentration risk. As the Company scales, continued investment in internal audit capability, formalized risk registers, and escalation protocols will be critical to maintaining a control environment proportionate to its growing operational footprint.

Pakistan's telecom sector serves over 208 million cellular subscribers as of mid-2026, distributed across a concentrated four-player market led by Jazz at approximately 36% market share, followed by Zong, Telenor, and Ufone. The PTCL-Telenor integration, financed by a USD 400 million IFC-led facility, is expected to consolidate the market to three active MNOs, intensifying competitive dynamics among remaining operators. Pakistan's first 5G spectrum auction process, though advanced in preparation across ITU-designated bands including 700, 2100, 2300, 2600, and 3300 MHz, has faced delays arising from litigation over a key spectrum block and complexities surrounding the PTCL-Telenor merger, with commercial rollout now expected to materialize in the near term, unlocking an estimated USD 831.8 million investment round and accelerating network densification requirements. Each operator is estimated to require upgrades to more than 1,000 mobile sites annually to expand capacity and support 5G, while operators are collectively expected to pay at least USD 510 million for newly acquired spectrum, with half due imminently. Energy cost inflation remains the most structurally acute pressure: power tariffs have increased approximately 250% over the preceding three to four years, with energy comprising 20–30% of MNO operating expenditure, while diesel unavailability has at points rendered over 20,000 towers suspended or severely disrupted nationwide. A joint government task force has initiated consultations to extend industrial electricity tariffs to the telecom sector, and a high-level committee has been formed to examine load-shedding exemptions for tower infrastructure, regulatory signals that, if enacted, would materially alter MNO cost economics. Pakistan operates over 50,000 tower sites nationwide, with a significant portion relying on weak-grid or off-grid power, sustaining heavy diesel dependency that drives up operating costs and accelerates carbon emissions. The global EaaS market for telecom towers was valued at approximately USD 5.06 billion in 2025 and is projected to reach USD 15.25 billion by 2034 at a CAGR of 12.8%, with Asia Pacific commanding approximately 38% of global market share, underpinning the structural attractiveness of the service model in which Infralectric operates. Primary credit risk factors endemic to the sector include MNO client concentration, energy price volatility under fixed-price lease contracts, foreign exchange exposure from dollar-denominated equipment procurement, regulatory uncertainty around spectrum allocations, and technology obsolescence risk. ESG considerations are increasingly prominent, as MNOs face mounting sustainability disclosure pressures and investor scrutiny over carbon emissions, creating durable structural demand for credible renewable energy infrastructure providers.

Infralectric has secured long-term contracts with major telecom operators, Telenor Pakistan and Ufone, having solarized 2,781 towers to date with a further 948 sites under active deployment. With Pakistan's telecom sector comprising over 57,000 towers, the market remains substantially underpenetrated, presenting significant growth potential. While competition exists from traditional energy providers, infrastructure leasing firms, and increasingly from MNOs pursuing direct solarization arrangements, Infralectric's tripartite financing model, seven-year fixed-price contracts, and advanced technology integration through AI-enabled monitoring and predictive maintenance position it favorably to capture a larger market share.

FY25 marked the critical inflection point at which lease arrangements began meeting revenue recognition criteria, establishing a meaningful earnings base reflective of Infralectric's commercial maturity. Management accounts for FY26 confirm continuation of this trajectory, with the Company recording a substantially improved profitability profile relative to the prior year, driven by expanding site completions, operational leverage across a growing tower portfolio, and disciplined cost management. The improvement in bottom-line performance despite a moderation in topline, attributable to the phasing of site completions and recognition timing, underscores the strengthening quality of earnings rather than any deterioration in underlying business momentum. PACRA views the FY26 management accounts as broadly consistent with the Company's stated growth strategy, with the fully commissioned portfolio expected to underpin sustained cash flow generation in the near-to-medium term.

For the year ended June 30, 2026, based on management accounts, the Company's profitability margins improved materially on a year-on-year basis, notwithstanding a contraction in topline revenue. Gross profit margin expanded to 24.8% from 15.4% in FY25, reflecting a proportionately sharper decline in cost of sales relative to revenue, indicative of improving cost efficiency as the deployed tower portfolio matures and fixed infrastructure costs are progressively absorbed across a larger operational base. Operating margin similarly strengthened to 20.2% from 12.9%, supported by controlled growth in general and administrative expenses. Net profit margin improved to 19.0% from 7.3% in FY25, which provided incremental support to bottom-line profitability.

Infralectric's medium-term earnings trajectory is supported by the structural characteristics of its lease-based business model, which generates recurring contractual cash inflows across a seven-year agreement horizon. The progression through FY25 and into FY26 management accounts validates the model's capacity to translate operational activity into reportable revenues and improving margins, providing a stronger foundation for forward-looking assessment. The 948 sites under active deployment provide visibility into near-term revenue expansion, subject to execution risk associated with site deployment timelines, and equipment procurement logistics. Capital expenditure is front-loaded at the point of tower deployment, with debt financing comprising ~80% of per-project capital and equity from Infralectric constituting ~20%, creating a recurring investment requirement as the portfolio grows. The significant equity injection completed during FY26 materially strengthens the Company's capacity to co-fund incremental deployments, reducing near-term reliance on external financing. The funding plan for growth capital continues to rely on tripartite financing arrangements with institutional lenders, the adequacy of which remains contingent on MNO contract enforceability and lender appetite for structured infrastructure exposure. PTCL's completed acquisition of Telenor Pakistan has consolidated both of Infralectric's primary MNO counterparties, Telenor Pakistan and Ufone, under a single parent entity. While this reduces effective counterparty diversity, it concentrates contracting relationships within a larger, better-capitalized group, and near-term contract renegotiation or scope disruption risk is considered manageable given the binding nature of existing tripartite arrangements. ESG compliance is embedded within the operating model through solar and battery integration across deployments, and the Company's carbon reduction credentials, anchored by Pakistan's first Green Sukuk issuance in the telecom sector, are expected to be increasingly relevant.

Based on management accounts for FY26, the Company's current ratio improved materially to 10.7x from 6.3x in FY25, reflecting a substantially strengthened liquidity position driven by the equity injection completed during the period and progressive cash flow realization from commissioned sites. The improvement in gross working capital days to 31 days and net working capital days to 21 days in FY26, from 4 days and negative 5 days respectively in FY25, reflects the natural evolution of the Company's receivables and payables cycle as the lease portfolio scales and revenue recognition becomes more established. Given Infralectric's service-based and lease-driven business model, traditional working capital metrics carry limited standalone interpretive value, as fluctuations in these ratios primarily reflect the structural characteristics of the EaaS model rather than conventional asset-liability mismatches. The strong current ratio nonetheless provides comfort on near-term liquidity adequacy, ensuring the Company retains sufficient buffer to meet operational obligations and debt servicing requirements as the portfolio continues to expand.

Infralectric's coverage metrics reflect a marked improvement in FY26 management accounts relative to the transitional FY25 period, validating the model's capacity to generate meaningful debt-servicing cash flows as the lease portfolio reaches commercial scale. EBITDA-to-finance cost improved to 1.1x in FY26 from -11.1x in FY25, reflecting the combined effect of margin expansion, a materially lower average borrowing cost following the Green Sukuk issuance, and growing operational cash flows from commissioned sites. FCFO-to-finance cost similarly improved to 0.4x from -4.3x, corroborating the improving quality of cash generation across the portfolio. The debt payback ratio, while elevated at 169.6x in FY26, reflects the front-loaded capital structure inherent to infrastructure deployment rather than any deterioration in underlying cash flow capacity; as the commissioned portfolio seasons and IFRS 16 lease recognition thresholds are met across the expanding site base, this metric is expected to normalize progressively. The 948 sites currently under active deployment provide forward visibility into incremental FCFO generation, lending comfort to PACRA's expectation that coverage metrics will continue to strengthen as contractual maturities align with revenue recognition and external funding dependence diminishes over time.

Infralectric's capital structure remains leverage-oriented, consistent with the front-loaded financing requirements of an infrastructure deployment model, with total borrowings comprising 73.3% of total capitalization in FY26 management accounts compared to 71.5% in FY25. The marginal increase in leverage ratio notwithstanding, the period witnessed a transformative strengthening of the equity base, with shareholders' equity expanding substantially to PKR 1.7 billion from PKR 730 million in FY25, reflecting the significant equity injection completed during the period by the sponsoring group. This development materially improves the absolute quality of the capital structure, providing a stronger buffer against leverage-related pressures even as the debt-to-capitalization ratio remains elevated. The lease-based business model under IFRS 16 results in upfront liability recognition, inflating reported leverage metrics relative to the underlying economic exposure, as corresponding lease receivables and contractual cash inflow streams are not symmetrically reflected on the liability side. The board-approved debt policy, which restricts borrowings exclusively to tripartite-backed arrangements, provides a structural discipline that limits leverage accumulation beyond contracted revenue coverage. As commissioned sites season and FCFO generation strengthens, PACRA expects the leverage trajectory to moderate progressively, supported by the reinforced equity base and disciplined financing framework.