Mughal Iron & Steel Industries Limited was incorporated in Pakistan as a public limited company in 2010. The Company is engaged in the manufacturing and sale of steel products, along with non-ferrous products such as copper and aluminium. In 2011, the Company took over the running business of a partnership concern by the name of “Mughal Steel” which had been in the steel business for over 60 years and was being run by the major sponsors of the Company. The Company was listed on the Pakistan Stock Exchange in March 2015 where its shares are traded under the Engineering sector.

MISIL traces its roots to Mughal Steel, a partnership concern established over six decades ago and managed by the Company’s major sponsors. In 2010, the business was restructured and incorporated as a public limited company to achieve better governance, transparency, and growth prospects. The Company was subsequently listed on the PSX in March 2015 under the Engineering sector. Over the years, MISIL has evolved into a fully integrated manufacturer in the ferrous segment, producing a wide range of steel products, while also diversifying into non-ferrous offerings such as copper and aluminum. The registered head office is located in Lahore, with the manufacturing facility at 17 KM Sheikhupura Road, Kot Abdul Malik. The Company primarily caters to the domestic housing sector (urban and rural), large infrastructure projects, and the international market for non-ferrous products.

MISIL’s operations comprise two segments: ferrous and non-ferrous. The ferrous segment is the principal line of business and contributes the majority of revenues. Over time, the Company has developed a broad product portfolio within this segment, including billets, girders, T-Iron, rebars, and other steel products, enabling it to serve the diverse needs of the housing, industrial, and infrastructure sectors. The non-ferrous segment, though relatively smaller in scale, primarily comprises copper and aluminum ingots. Strong export proceeds, from non ferrous segment, particularly from sales to China, enhance MISIL’s overall profitability and provide a competitive edge by diversifying revenue streams beyond the domestic market.

The Sponsor family holds a controlling stake (around ~75.3%) with the remaining ownership distributed among financial institutions and the general public. As of June 30, 2025, the Company’s ordinary shareholding was concentrated with Directors/CEO & family (43.20%) and Associated Companies/related parties (32.16%), while Banks/DFIs/NBFIs held 5.16% and the General Public 7.91%. On June 17, 2025, the company further issued 33,062,447 Ordinary Class-C shares through a rights issue. 

The ownership structure of MISIL is regarded as stable, with majority shareholding vested in the Mughal family. As the founding sponsors have a longstanding association with the steel business and their sustained commitment significantly reduces the likelihood of any ownership changes in the foreseeable future.

With over six decades in the business, the sponsoring Mughal family demonstrates extensive experience in the steel and allied industries. Their longstanding presence reflects both resilience and strong market knowledge, positioning them as one of the key players in the sector.

The financial health of the Company is considered adequate, underpinned by sponsor support. The owners not only provide strategic direction in line with the evolving business environment but have also demonstrated their commitment by injecting funds on an as-and-when-required basis.

The Board consists of nine members, six of whom belong to the sponsoring family, including the Chairman, Mr. Mirza Javed Iqbal, and the CEO. The remaining three are independent directors.

The Board comprises members with the requisite skills, competence, knowledge, and experience necessary for effective oversight. Mr. Javed Iqbal has nearly four decades of extensive experience in the local steel industry. Alongside the directors representing the sponsoring family, the presence of independent directors, Mr. Shoaib Ahmed Khan and Mr. Abdul Rehman Qureshi further strengthens the Company’s governance framework. Collectively, the Board members bring diverse expertise, key competencies, and have each completed more than one three-year term.

The company has three board committees: (i) Audit Committee, (ii) HR & Remuneration Committee and (iii) Environment, Social and Governance (ESG) committee, each committee including an independent director as required by the SECP Code of Corporate Governance. Overall, board members’ attendance has been satisfactory. Furthermore, the inclusion of independent directors strengthens governance by ensuring impartial oversight and safeguarding the interests of all stakeholders. Additionally, the presence of a female board member adds diversity and is in alignment with best corporate governance practices.

The Company’s external auditors, M/s. Fazal Mahmood & Co. and M/s. Muniff Ziauddin & Co., expressed an unqualified opinion on the financial statements for the year ended June 30, 2025.

The Company follows a streamlined organizational structure with clear roles and significant delegation. The organogram is divided between the CFO and COO, with departments reporting accordingly, while executive directors and the CEO report to the Board. This structure supports effective decision-making and operational efficiency.

Mr. Khurram Javed, the CEO, has over a decade of professional experience and holds an MBA from Coventry University. He has enhanced the Company’s HR quality by inducting professionals across diverse fields and also serves as CEO of four group companies: Mughal Energy Limited, Mughal Steel Re-Rolling Industries Limited, Mughal International IMPEX Limited, and Indus Engineering (Pvt.) Limited. He is supported by a skilled and experienced management team. The team also includes Mr. Shakeel Ahmad, Chief Operating Officer, who brings over a decade of experience in strategic market positioning, sales growth, and brand development. Supporting him is Mr. Muhammad Zafar Iqbal, Chief Financial Officer, a Fellow Member of ICAP with extensive expertise in finance, taxation, and strategic planning. 

Mughal does not have formal management committees; instead, departmental heads hold regular meetings to review key performance areas and report to their respective executive directors.

MIS reports are prepared and customized as per management’s requirements on a daily, weekly, and monthly basis, covering areas such as re-ordering sheets and financial facilities status.

The Company has an ERP system in place which is currently being used for reporting purposes.

During FY25, Pakistan’s long steel (rebar) sector demonstrated resilience despite a medium-to-high business risk profile driven by cyclicality, imported scrap reliance, and elevated energy costs. Annual demand remained steady at around 4–5 million tons, supported by ongoing housing construction and small-scale development activity. The Federal and Punjab governments’ sizeable allocations under the Public Sector Development Programme (PSDP) are expected to stimulate infrastructure-related steel demand in the near term. Meanwhile, the copper segment faced headwinds amid global trade disruptions, particularly due to renewed U.S.–China tariff tensions and regulatory shifts affecting scrap availability. Locally, changes in Pakistan’s Export Facilitation Scheme (EFS) influenced copper export flows. With interest rates easing to around 11% by end-FY25 (from ~22% in FY24), profitability in both steel and copper operations is expected to gradually improve, contingent on stable demand and manageable input costs.

MISIL ranks among the leading long steel manufacturers in Pakistan. The Company benefits from a well-established brand, extensive dealer network, and diversified product portfolio encompassing billets, rebar, and non-ferrous ingots. This diversification supports stable demand across market segments and enhances resilience against cyclical variations. Consistent operational performance, coupled with a sustained focus on quality and efficiency, underpins MISIL’s strong position within the domestic steel industry.

For the nine months ended March 31, 2025, the Company reported gross sales of Rs. 75,704.9 million (9MFY24: Rs. 76,487.2 million) with net profit of Rs. 453.0 million (FY24 Sales: Rs. 92.4 billion). Net external sales from the ferrous segment rose by 7% on higher volumes, while non-ferrous sales declined by 23%. This shift reflects the Company’s strategic focus on ferrous operations amid regulatory and operational challenges in the non-ferrous segment. Ferrous margins showed slight improvement, non-ferrous margins remained stable, but overall margins fell due to the change in sales mix.

During 3QFY25, Mughal's gross and operating margins observed a slight improvement as compared to FY24, but declined when compared to previous periods as per reported figures (Gross: 3QFY25:8.9%, 3QFY24: 9.6%, 3QFY23: 13.6%; FY24: 8.4%) & (Operating: 3QFY25: 7.6%, 3QFY24:8.5%, 3QFY23: 12.3%; FY24: 7.2%). However, the Net Profit Margin observed a dip compared to FY24 as per reported figures, (Net: 3QFY25: 0.7%, 3QFY24: 2.1%, 3QFY23: 5.5%; FY24:2.2%) mainly due to slight decrease in gross margins and high finance cost.

MISIL demonstrates a growing commitment to sustainability through operational efficiency, responsible sourcing, and energy conservation. Its production facilities operate on Electric Induction Furnaces and Direct Rolling Technology, significantly reducing thermal energy usage, complemented by European-origin energy-efficient rolling mills and automated load management systems. The Company also utilizes a water treatment plant to recycle process water, reducing freshwater dependency. Supply chain sustainability is supported through the use of verified recycled steel scrap and a shift toward rail-based scrap transportation to minimize logistics emissions. Additionally, MISIL’s circular production model—converting steel scrap into finished products—positions it as a low-carbon steel producer. Ongoing exploration of renewable energy solutions further reinforces long-term operational and environmental resilience.

During 3QFY25, Mughal’s net working capital cycle stood at 124 days, compared to 118 days at end-Jun’24 and 145 days at end-Jun’23. Inventory days improved to 84 (FY24: 86; FY23: 112), reflecting better stock management. Receivable days, however, increased to 53 (FY24: 40; FY23: 40) due to higher local ferrous sales and stronger quarter-end dispatches, while payable days rose to 13 (FY24: 8; FY23: 7). The shift in working capital dynamics was largely attributed to expanded ferrous operations and a strategic reduction in export-oriented non-ferrous activity.

The Company funds its working capital through internal cash generation, sukuk placements, and short-term bank lines. As of end-Mar’25, short-term borrowings stood at PKR 25.31bln (FY24: PKR 24.99bln; FY23: PKR 20.62bln). The current ratio moderated to 6.8x in 3QFY25 (FY24: 8.3x; FY23: 10.2x).

Free Cash Flows from operations (FCFO) were PKR 4.48bln in 3QFY25, down from PKR 5.92bln in FY24, PKR 8.25bln in FY23, and PKR 8.73bln in FY22, reflecting increased working capital absorption and higher borrowing costs. Finance costs remained elevated at PKR 4.67bln (3QFY24: PKR 4.69bln; FY24: PKR 6.36bln), leading to an interest coverage ratio of 1.2x in 3QFY25 (3QFY24: 1.3x; FY24: 1.2x; FY23: 2.3x).

As of end-Mar’25, the debt-to-equity ratio stood at 54.2% (end-Jun’24: 57.6%; end-Jun’23: 50.6%), reflecting improved leverage following fresh equity injection and reduced long-term repayment pressure. During FY25, the Company issued 9.85% right shares (30.06mn Class-C shares) at PKR 45 per share, resulting in an equity inflow of approximately PKR 1.48bln.

Long-term debt stood at PKR 2.95bln (end-Jun’24: PKR 2.40bln), while the current maturity of long-term obligations declined to PKR 1.2bln (3QFY24: PKR 4.1bln), indicating scheduled repayments. Short-term borrowings constituted around 77.5% of total borrowings, with ongoing efforts to renew and expand bank facilities alongside exploration of additional Sukuk-based funding avenues.