PACRA Maintains Entity Ratings of Mega Conglomerate (Pvt.) Limited

The ratings reflect Mega Conglomerate (Pvt.) Limited’s (“the Company” or Mega) affiliation with Mega & Forbes Group, one of Pakistan’s prominent and diversified business groups with interests spanning energy, real estate, food, and the emerging electric vehicle (EV) sector. Mega functions as a holding company, strategically consolidating the Group’s investments, with dividend income serving as its primary revenue source. Its 19.4% stake in The Hub Power Company Limited (HUBCO) continues to anchor cash flows, although dividend income declined in FY25 compared to FY24 due to HUBCO’s evolving energy portfolio. The Company’s financial profile strengthened in the previous year following the conversion of commercial long-term debt into a subordinated, interest-free loan from an associated undertaking. This restructuring released secured assets and reduced financial costs, enhancing profitability. As of FY25, leverage stood at 26.3%, down from 39.8% in FY24, with the majority of borrowings representing related-party exposures. Liquidity remains supported by stable dividend inflows and a diversified asset base, including wholly owned subsidiaries (Mega Foods and G4 Mega Pakistan), strategic stakes in PayPro and HUBCO, and perpetual TFCs providing recurring income. Strategically, the Company continues to evolve, notably with its expansion into the electric vehicle sector through Mega Motor Company (Pvt.) Limited, in which the Company has invested approx. PKR 2bln in FY25. Going forward, Mega’s investment in the venture is expected to increase, with the Company holding a 50% stake alongside HUBCO. Independently, Mega Motor is expected to raise debt financing to support its business operations and growth. While the Company itself has no conventional borrowings, overall debt at the Group level remains significant, and the additional financing for Mega Motor is likely to increase leverage at the consolidated level.
The ratings are closely linked to the performance of the Company’s strategic investments and the successful execution of its business strategies, underpinned by a consistent dividend stream from its portfolio. Strengthening the governance framework and addressing the issues highlighted by the external auditor will also be important to sustain and potentially enhance the ratings over time.

About the Entity
Mega Conglomerate (Pvt.) Limited (“Mega” or “the Company”) was incorporated in Pakistan in 2010 as a private limited company under the Companies Ordinance, 1984 (now the Companies Act, 2017). Established as a holding company, Mega maintains controlling interests in its subsidiaries while providing centralized strategic direction across the Group. The Company’s investment portfolio spans the energy, real estate, dairy, automobile, and fintech sectors, with total investments valued at approximately PKR 28bln. Mega is majority-owned by Mr. M. Habibullah Khan (88%), the Founder and Chairman of the Mega & Forbes Group, with the remaining 12% held by Mrs. Nusrat Khan.