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’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 the 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, through corporates and individuals, 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 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. 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 a slight decrease in gross margins and high finance cost.

During 3QFY25, Mughal’s net working capital cycle stood at 124 days, compared to 118 days at end-June 2024 and 145 days at end-June 2023. Inventory days recorded a slight improvement at 84 days (FY24: 86 days; FY23: 112 days), reflecting better inventory management. However, receivable days increased to 53 (FY24: 40; FY23: 40), primarily due to higher local ferrous operations and increased quarter-end sales, while payable days also rose modestly to 13 (FY24: 8; FY23: 7). The overall change in working capital was driven by increased ferrous activity and a strategic reduction in export-oriented non-ferrous operations. The Company meets its working capital needs through internal generation, sukuk placements, and short-term bank borrowings. As at end-Mar’25, short-term borrowings stood at PKR 25.31bln (FY24: PKR 24.99bln; FY23: PKR 20.62bln), while the current ratio declined to 6.8x (FY24: 8.3x; FY23: 10.2x). Free cash flows from operations (FCFOs) were PKR 4.48bln in 3QFY25, lower than PKR 5.92bln in FY24, PKR 8.25bln in FY23, and PKR 8.73bln in FY22, reflecting higher working capital requirements and elevated financing costs. Finance costs remained high at PKR 4.67bln (3QFY24: PKR 4.69bln; FY24: PKR 6.36bln), mainly due to increased debt levels and the lag effect of high policy rates, keeping interest coverage at 1.2x (3QFY24: 1.3x; FY24: 1.2x; FY23: 2.3x). As of end-Mar’25, MISIL’s capital structure reflected a balanced mix of debt and equity, with a debt-to-equity ratio of approximately 54.2% (end-Jun’24: 57.6%; end-Jun’23: 50.6%). During FY25, the Company issued 9.85% right shares—equivalent to 30.06 million ordinary Class-C shares—at PKR 45 per share (including a PKR 35 premium), resulting in an equity addition of approximately PKR 1.48bln, which was utilized to support working capital requirements. Long-term debt stood at PKR 2.95bln as of end-Mar’25 (end-Jun’24: PKR 2.40bln), while the current maturity of long-term loans declined to PKR 1.2bln (3QFY24: PKR 4.1bln), reflecting scheduled repayments. Short-term borrowings continued to dominate the debt profile, accounting for approximately 77.5% of total borrowings. Management continues to renew and enhance existing bank lines while exploring additional Sukuk-based financing avenues to cater to increased working capital needs.

Mughal has issued a ‘Listed, Secured & Privately Placed Long Term Islamic Certificates (Sukuk) of PKR 3bln (inclusive of a Green Shoe option of PKR 1bln). The tenor of Sukuk will be 5 years. Sukuk will be priced at 3MK+1.3% p.a. with profit payable quarterly in arrears on the outstanding principal amount. The Security Structure of the Transaction is such that; (i) A debt payment account (“DPA”) will be maintained with the agent bank which will be built up with 1/3 (one-third) of the installment (principal plus profit) each month by the 25th such that the entire upcoming installment is deposited in the DPA by the 15th day of the 3rd month. (ii)First pari-passu hypothecation charges over-all present and future movable assets with a margin of 25% (in accordance to the Issue amount). On September 3, 2025, the company paid the 18th Profit & 14th Principal payment to Sukuk holders. And as of September 2025, the Company has paid PKR 2,625 million (87.5%) of the principal amount, along with ~PKR 1,407.24 million in markup.

The security includes a first pari-passu hypothecation charge over movable assets with a 25% margin and was upgraded to a pari-passu charge within 120 days of disbursement.

A Debt Payment Account (DPA) is maintained, with one-third of the installment (comprising principal plus profit) is accumulated each month by the 25th day, ensuring that the entire upcoming installment is deposited in the DPA by the 15th day of the third month.