Master Green Energy Limited (MGEL), incorporated in May 2015, is a Renewable Energy Independent Power Producer (RE IPP) company operating under Pakistan’s Renewable Energy Policy 2006. It represents the Master Group’s second venture in the wind energy sector, following the successful development of Master Wind Energy Limited. The company has developed a 50 MW wind power project on a Build, Own, and Operate (BOO) model, located at Goth Dehson Walhar, District Jamshoro. Spanning around 300 acres of land leased from the Department of Energy Government of Sindh (DOEGOS) 30 years, the project supports the national agenda of promoting sustainable energy. MGEL was granted its generation license by NEPRA on November 27, 2017, and the plant commenced commercial operations on August 21, 2021.

Master Green Energy Limited (MGEL) operates under a cost-plus tariff framework awarded by NEPRA for wind power projects. As per NEPRA’s 2019 tariff determination for wind-based Independent Power Producers (IPPs), MGEL’s approved generation tariff is PKR 7.2396 per kilowatt-hour (kWh) for years 1–10, and PKR 2.3726 per kilowatt-hour (kWh) for years 11–25 of the project life. The levelized tariff for the project stands at US¢ 4.7227 per kWh, equivalent to PKR 5.667 per kWh..  During the current period, the applicable tariff remained elevated due to indexation adjustments, with the revised tariff standing at PKR 13.7362/kWh for October–December 2025 and PKR 13.6120/kWh for January–March 2026.

The Internal Rate of Return (IRR) for Master Green Energy Limited’s 50 MW wind power project, as approved by NEPRA, is 14%. The project’s primary revenue stream is the sale of electricity to the Central Power Purchasing Agency (CPPA-G) under a long-term Power Purchase Agreement (PPA).

Master Green Energy Limited (MGEL) is wholly owned by Master Group, with 99.99% of its shareholding held by associated companies. The ownership is equally divided among three brothers through their respective holding companies: Nadeem Malik Holdings (Pvt.) Ltd., NM Holding (Pvt.) Ltd., and Najeeb Holdings (Pvt.) Ltd., each holding 25.67%. Additionally, Master Textile Mills Ltd. holds a 23% stake, reflecting the Group’s consolidated investment in MGEL through internal shareholding.

Master Group, the parent company of MGEL, brings over 50 years of business legacy and stability. Established in 1963 with its flagship company Master Enterprises (Pvt.) Ltd., the Group began with foam products and later expanded through Master Celeste, launching premium bedding solutions in Pakistan. Over the decades, the Group has successfully diversified into textiles, engineering, automobiles, and retail, establishing itself as one of Pakistan’s leading industrial conglomerates. This long-standing presence and diversified portfolio reflect strong, stable, and experienced ownership behind MGEL

Master Group’s strong business acumen is reflected in its successful diversification across multiple industries beyond its origins in foam manufacturing. The Group maintains a well-established presence through Master Textile in the textile sector, Master Motors in the automotive industry, and Procon Engineering, which caters to global automotive brands. In addition, Celeste represents the Group’s positioning in the premium sleep solutions segment, while Master Offisys highlights its footprint in the retail and office furniture space. The Group has also expanded into the technology domain through Indus Cloud, further strengthening its diversified portfolio. This broad-based presence underscores the Group’s strategic vision, operational resilience, and ability to adapt to evolving market dynamics, thereby providing strong managerial and financial support to Master Green Energy Limited.

The sponsors of Master Green Energy Limited (MGEL) possess strong financial strength, supported by a diversified portfolio of well-established and profitable businesses. Their stable revenue streams across multiple sectors, including textiles, automotive, engineering, and consumer goods and, provide a solid foundation for the Company’s long-term sustainability and financial commitments.

MGEL’s Board of Directors consists of three members, all representing the Master Group. The board includes the Chairman, who also serves as the Managing Director, one Executive Director, and one Non-Executive Director. This structure ensures effective oversight, strategic direction, and alignment with the Group’s vision.

Mr. Nadeem Malik is the Chairman of the Board of Master Green Energy Limited and has been associated with the Master Group for over three decades, serving as Chairman across various Group companies. He brings extensive leadership experience and strategic vision to the Board. Mr. Najeeb Malik, also a long-standing member of the Master Group, currently serves as a Director on the Board of MGEL and contributes to the company's governance and strategic planning

The experience and leadership of MGEL’s Board of Directors play a key role in guiding the company’s strategic direction. Their deep understanding of business operations and financial management supports the development of effective operational and financial policies, ensuring strong governance and long-term sustainability of the project

Master Green Energy Limited upholds strong financial transparency through regular audits conducted by Yousuf Adil, Chartered Accountants, one of Pakistan’s leading audit firms, who served as the Company’s auditors for both June 2025 and 1HFY2026.  Auditor has expressed unqualified opinion on the financials of june 2025.

MGEL has a lean organizational structure. The company has a well-defined lean organizational structure with a professional management team in place to monitor the operations and assure control mechanisms.

The management team of Master Green Energy Limited (MGEL) comprises experienced professionals with proven leadership across diverse industries. Mr. Shahzad Malik, Managing Director & CEO, holds an MBA from Bentley University, USA, and has over a decade of experience in the foam and renewable energy sectors. He has modernized the Group’s foam business, expanded its global footprint, and also is leading the Master Wind Energy Limited while serving on the boards of various Master Group companies. Mr. Rumman Arshad Dar, Chief Operating Officer, brings over 20 years of experience in the finance and energy sectors.

MGEL’s board effectiveness is reflected in its strong governance, strategic oversight, and commitment to long-term value creation. The board plays a vital role in guiding the company’s vision, ensuring accountability, and supporting the executive team in key decisions. Its diverse expertise and active involvement have contributed to transparent, timely, and well-informed decision-making, fostering sustainable growth and organizational resilience.

Master Green Energy Limited maintains a structured control environment supported by advanced technological systems. The company leverages Oracle EBS R12 software to enhance operational efficiency and ensure robust control across various functions. Additionally, the use of SCADA systems in wind turbines allows for real-time monitoring and performance optimization. The company’s IT infrastructure is reliable and effectively supports its operations, with the scope and quality of activities consistently meeting satisfactory standards. However, the absence of an internal audit function and audit committee highlights an area for potential improvement in strengthening overall governance and risk management practices

Master Green Energy Limited operates under the Renewable Energy Policy 2006, with a long-term Energy Purchase Agreement (EPA) signed with the Central Power Purchasing Agency Guarantee Limited (CPPA-G). The agreement has a tenure of 25 years, starting from the Commercial Operations Date (COD) in August 2021. Following the Government of Pakistan's broader initiative to renegotiate and amend Power Purchase Agreements across the IPP sector, MGEL successfully executed an amendment to its PPA, which has strengthened the Company's operational framework. Accordingly, the EPA will remain in effect until August 2046, providing a stable and predictable revenue stream for the project throughout its operational life.

Hydro China Served as the construction contractor for the project which provided a two-year warranty period for operation and maintenance (O&M) services following the Commercial Operations Date (COD). Furthermore, a long-term O&M contract for remote monitoring and services has been established with Siemens Gamesa Renewable Energy (SGRE), while Al-Bario Engineering (Pvt) Limited has been engaged to deliver onsite O&M services, ensuring the project’s continued reliable performance.

Under the Renewable Energy Policy 2006, resource risk refers to the variability in wind speed, which directly impacts the energy output of a wind power project. For Master Green Energy Limited (MGEL), this means that any fluctuation in wind speed affecting electricity generation is a risk borne by the company. As outlined in the Energy Purchase Agreement (EPA), MGEL is solely responsible for lower electricity generation resulting from reduced wind availability, making accurate forecasting and site selection critical to managing this risk effectively.

Master Green Energy Limited (MGEL) has obtained comprehensive insurance coverage to ensure the protection and continuity of its operations. The company has engaged Adam Jee Insurance and Alfalah Insurance to provide extensive risk coverage. The policy encompasses key areas such as business interruption, third-party liability, political violence, and property damage, thereby safeguarding MGEL against potential disruptions and unforeseen events that may affect its operations

The industry dynamics of Pakistan's power sector in 2024-2025 are marked by a stable outlook despite a decline in overall power generation. While total installed capacity rose 11% to 46,605 MW by 9MFY25 largely due to a 2,813 MW increase in renewable energy net metering actual generation fell by 2%, leading to a lower average capacity factor of 22.1%. This shift in capacity occurred alongside the government’s termination of Power Purchase Agreements (PPAs) with several Independent Power Producers (IPPs). The sector remains heavily dependent on thermal power, which accounts for the largest share of both capacity and generation, followed by hydel, nuclear, and renewable sources. Financially, the industry continues to grapple with a circular debt of approximately PKR 2.4 trillion, which the government is addressing through a combination of federal budget allocations and PKR 1.25 trillion in commercial bank loans to be repaid over six years via existing surcharges. Additionally, sector borrowing decreased by 7% to PKR 471,790 million by June 2025, with coal and thermal plants remaining the most heavily leveraged entities.

Generated energy stood at 69.57 GWh in 1HFY26, compared to 52.12 GWh in 1HFY25 (1HFY24: 59.47 GWh; FY24: 103.97 GWh; FY23: 132.32 GWh). The benchmark annual generation capacity for MGEL stands at 169.00 GWh. The improved  output in the current period is primarily attributable to relatively to better wind conditions, with average wind speeds recorded at 6.62 m/s in 1HFY26, showing an improvement from 6.01 m/s in 1HFY25, though still below historical levels.

The required availability and the capacity factor are 97% and 38.48% by NEPRA

Master Green Energy Limited (MGEL) has structured its project financing with a total cost of USD 65.03 million, comprising 80% debt (USD 52 million) and 20% equity (USD 13 million). The debt component includes a foreign loan of USD 25 million at a rate of 3M SOFR+CAS + 4.25% with a 13-year maturity, and a local loan of PKR 4.38 billion, financed under two tranches: one at the SBP refinancing rate of 3% + 2.25%, and the other at a commercial bank rate of 3M KIBOR + 1%, with a 10-year maturity. Both foreign and local loans are structured for repayment through quarterly installments. This financing mix reflects a balanced approach, leveraging both international and domestic funding sources while aligning repayment terms with the project's long-term cash flow generation. The Company has also demonstrated strong debt servicing capacity, having timely met 19 instalments of both foreign and local debt as of March 2026, reflecting disciplined financial management and adherence to agreed repayment schedules.

Master Green Energy Limited (MGEL) maintains a stable liquidity profile, supported by its low operational costs, as wind IPPs do not require fuel procurement and primarily depend on internal cash flows. However, the ongoing circular debt issue in the power sector continues to impact liquidity. Receivables from CPPA-G stood at PKR 252.96 million in 1HFY26 (December 2025), improving from PKR 347.22 million in 1HFY25, PKR 579.24 million in FY25, PKR 667.70 million in FY24, and PKR 759.08 million in FY23. This reflects a quarterly decline of 56% compared to June 2025 and a year-on-year reduction of 27.15% compared to December 2024, indicating a notable improvement in recovery timelines and strengthening cash inflows.

Trade payable days of 34 indicate that the Company settles its obligations within a month, while receivable days of 67 reflect relatively delayed cash inflows. The resulting net working capital cycle of 33 days highlights a funding gap, primarily driven by receivables. However, this represents a significant improvement from 85 days as of June 2025, indicating better recovery in receivables and enhanced working capital management during the period.

Net cash generated from operations for 1HFY26 stood at ~PKR 770mln (1HFY25: PKR 553mln; FY24: PKR 1,904mln; FY23: PKR 1,968mln), reflecting an improvement in cash generation during the period, primarily driven by higher profitability and improved recovery in receivables. Interest coverage ratio (EBITDA/Finance Cost) as at 1HFY26 clocked at 2.7x (1HFY25: 1.7x; FY24: 2.3x; FY23: 2.3x), indicating a strengthened buffer for debt servicing amid enhanced earnings profile.

MGEL’s leveraging at end December 2025 stood at 69.3% (December 2024: 71.03%; FY24: 79%; FY23: 79%), reflecting a gradual improvement in the Company’s capital structure, supported by ongoing debt repayments and growth in equity base. The declining trend indicates strengthening financial risk profile, while the Company continues to meet its principal and interest obligations in line with agreed financing terms.