Matracon Pakistan Pvt. Ltd. (hereinafter referred to as ‘‘the Company’’ or ‘‘Matracon Pak’’) is a Private Limited Company (unquoted) incorporated in 2006.

The Company was originally founded by Mr. Mohammad Abdul Qadir, who brought with him years of entrepreneurial experience. He initially launched the business in 1995 as a sole proprietorship in Quetta. The business was later reorganized and subsequently expanded, with the Company being re-established in Islamabad under the brand 'Matracon Pakistan' to pursue a broader vision.

Matracon Pak has focused its core activities on the development of both commercial and residential projects across Pakistan. Their portfolio includes large-scale infrastructure works such as roads, bridges, pipelines, canal systems, airport facilities, and water supply schemes. They are also involved in the construction of office complexes, industrial units, and pre-fabricated buildings.

Matracon Pakistan Pvt. Ltd. is predominantly held by Mr. Mohammad Abdul Qadir, who owns 99.9% of the company. The remaining 0.1% shares are held by his father, Mr. Muhammad Ayub.

With Mr. Mohammad Abdul Qadir holding majority ownership, Matracon maintains a stable leadership foundation. However, there is a recognized need for a formal succession plan to secure long-term continuity and preparedness for future transitions.

Matracon Pakistan is guided by a highly experienced and capable leadership team. Mr. Mohammad Abdul Qadir, with over 28 years in the construction industry, and his partner, with 57 years of field expertise across senior roles, bring strategic insight, operational strength, and deep industry knowledge. Their long-standing involvement of over 15 years in the company reflects strong leadership and a hands-on approach to driving sustainable growth.

The ownership of Matracon Pakistan (Pvt.) Limited rests with a financially strong and established business family. Matracon serves as the sponsors’ primary business undertaking within the construction sector, supported by a substantial asset base that includes a portfolio of landholdings, providing notable financial flexibility. The sponsors demonstrate a stable financial position, with sufficient resources and liquidity to support their broader business interests and obligations.

Matracon Pakistan’s board consists of two members: Mr. Mohammad Abdul Qadir and his father, Mr. Muhammad Ayub. While this structure supports focused leadership, there is a recognized need to diversify the board by including professionals from various backgrounds to enhance strategic direction and governance.

Mr. Mohammad Abdul Qadir, a founding member, brings over 28 years of hands-on experience in the construction industry. He, along with Mr. Muhammad Ayub, has been part of the board since the company’s incorporation, contributing to its continued growth and development.

The board meets quarterly; however, formal records of meetings (minutes) are not maintained, and dedicated board committees are not yet in place. As the company is closely held, board governance remains centralized and would benefit from improved structure and oversight mechanisms.

The financial statements of the Company for the year ended June 30, 2025, were subjected to an independent audit by Ilyas Saeed & Co., who issued an unqualified (clean) opinion, confirming that the statements present a true and fair view of the Company’s financial position, performance, and cash flows in accordance with the applicable accounting and reporting standards. The audit for the financial year ending June 30, 2026, is currently in progress.

Matracon Pakistan operates with six key functional areas: (i) Finance, (ii) Marketing, (iii) Administration & HR, (iv) IT, (v) Engineering, and (vi) Procurement. These functions report directly to the Managing Director (MD). Each division is supported by a dedicated team, including both technical staff and senior managers, who report to their respective General Managers (GMs).

The management team is led by Mr. Jehanzeb Saulat, who heads execution and oversees business operations related to local clients. Mr. Akhwanzada Shahid Ali serves as the Chief Financial Officer (CFO), responsible for strategy, administration, and finance, including credit management, bank liaison, and handling Letters of Credit (LCs). The management framework is further supported by Mr. Qaiser Mehmood as Director Marketing, Mr. Faisal Jamal as Director Contracts, Maj. Hameed Ullah (Retired) as Director Legal, and Mr. M. Zaffar as Director Admin.

Although Matracon has an efficient segmented organizational structure with the sponsors directly overseeing day-to-day operations, there is a recognized need for formal management committees. These committees would help monitor performance, ensure compliance with company policies, and drive operational efficiency.

Matracon utilizes Intuit QuickBooks Enterprise Solutions as its customized accounting software for managing bookkeeping and accounting tasks, ensuring accurate financial record-keeping and operational efficiency.

The Company adheres to rigorous quality control standards in line with industry requirements. Matracon is certified under ISO 9001:2005, ensuring consistent quality in all its projects and reinforcing its commitment to excellence in the construction industry.

Pakistan's construction sector is exhibiting a gradual recovery, with the Public Sector Development Programme (PSDP) remaining the major demand driver, followed by private investment. The proposed FY27 PSDP stands at PKR 1,126 billion, marking an increase of approximately 34.5% YoY over the revised FY26 allocation of PKR 837.2 billion. Under the proposed FY27 PSDP, Infrastructure has been allocated PKR 729.9 billion, representing approximately 65% of the total outlay, with Transport & Communication receiving the largest share at PKR 408.9 billion, followed by Water at PKR 140.4 billion and Energy at PKR 135.6 billion. Despite continued constraints on non-PSDP development spending due to tight fiscal policy and IMF commitments, prioritized infrastructure projects continue to offer selective opportunities for construction firms. Construction sector activity remained resilient, recording growth of 5.73% in FY26 compared with overall GDP growth of 3.7%, supported by private-sector activity and government spending, while cement demand, a key indicator of construction activity, rose approximately 10% YoY. Over the medium term, supported by urbanization, population growth, CPEC-related infrastructure development, improving demand for cement and steel, and gradual macroeconomic stabilization, the construction sector is expected to maintain a stable growth trajectory, although its performance will remain dependent on continued public infrastructure investment and easing fiscal and geopolitical pressures.

Out of more than 10,000 firms registered with the Pakistan Engineering Council (PEC) as Constructors/Operators, only around 1%, hold the prestigious CA category license, which carries no limit on project size. Matracon Pakistan Pvt. Ltd. is among this elite group, positioning itself to serve a niche segment within the construction industry, particularly in large-scale infrastructure and specialized projects.

Matracon recorded revenues of PKR 20,986 million in FY26, a contraction of 15.5% from PKR 24,824 million in FY25. The FY26 financials are provisional (unaudited), and revenue therein largely reflects Interim Payment Certificates (IPCs) certified and realized during the year. Recognition on a work-done basis, as required under applicable accounting standards, is being incorporated through the ongoing audit, and the reported figures therefore remain subject to revision. Beyond this, the decline stemmed from a slower pace of project execution and certification, notably in the latter half of the year. The construction sector faced a challenging operating environment, shaped by global economic uncertainty and regional geopolitical developments, which weighed on procurement activity, trade-related arrangements and the availability of raw materials. Fiscal priorities also constrained development spending, further affecting the pace of certification on public sector projects. Consequently, certain planned works were deferred to the ensuing period.

Gross profit margin stood at 13.0% in FY26 (FY25: 17.1%). The moderation is attributable to a timing divergence between revenue and cost recognition: materials procured and works executed during the year, at elevated input costs, have already been expensed, whereas provisional revenue is yet to fully reflect recoveries under the contractual price escalation provisions. Consequently, cost of sales did not ease in proportion to revenue. Net profit stood at PKR 796 million (FY25: PKR 1,685 million), translating into a net margin of 3.8% (FY25: 6.8%). These provisions, which permit recovery of eligible increases in material, labour and other relevant costs subject to the contractual terms, are claimed as the related works are executed and certified, and are therefore expected to support margins in the ensuing period.

The long-term sustainability of the Company depends on successfully securing new contracts and ensuring timely funding for project execution. Its strong asset base, underpinned by property holdings at a prime location in Islamabad, along with its track record and industry position, provides a sound foundation for continued growth.

The Company's net working capital cycle stood at 27 days in FY26 (FY25: 18 days). The increase was primarily driven by increase in receivable days, reflecting the certification and payment cycles of institutional clients. This was partially offset by lower inventory days of 13 (FY25: 21) and higher payable days of 37 (FY25: 27). The increase in trade payables to PKR 2,640 million (FY25: PKR 1,563 million) stems mainly from the timing of supplier settlements and project procurement, and is considered to be in line with the scale of ongoing operations. Mobilization advances declined to PKR 2,400 million (FY25: PKR 3,725 million), as these were progressively recovered through running bills. Liquidity remained sound, with cash and bank balances of PKR 5,232 million at end-FY26 (FY25: PKR 5,090 million), providing a considerable cushion against short-term obligations. Timely realization of receivables and orderly settlement of payables will remain important in managing the working capital cycle.

The Company has no funded borrowings, and its finance cost is limited to commission on non-funded bank guarantees, which continue to support project execution. Free Cash Flow from Operations (FCFO) stood at PKR 1,236 million in FY26 (FY25: PKR 2,701 million), reflecting the moderation in profitability during the year. The absence of debt-servicing obligations, along with FCFO that remains ample relative to the finance cost, keeps the coverage profile comfortable. The current ratio stood at 2.3x (FY25: 2.6x), reflecting adequate short-term liquidity, supported by a sizeable cash buffer against current liabilities.

As at end-June 2026, the Company remains fully equity-financed with no reliance on funded lines, and the leveraging ratio stands at 0.0% (FY25: 0.0%). The equity base increased by 6.8% to PKR 8,955 million (FY25: PKR 8,382 million), and is predominantly comprised of internally generated retained profits, alongside paid-up capital and sponsor-related balances, which are carried within equity and reduced during the year. Project execution is supported by non-funded bank guarantees, the utilized portion of which stands at a notable level of around 1.04x of equity; although unfunded in nature, their invocation could convert them into funded exposure.