PACRA Maintains the Entity Ratings of Maaksons Engineering Corporation Limited.

Maaksons Engineering Corporation Limited (“Maaksons” or “the Company”) has been a part of Pakistan’s construction industry for over seven decades. The Company is now run by the third generation of the sponsoring family, with established offices in both Lahore and Islamabad. The sponsors possess a deep understanding of the construction and real estate businesses, with clearly defined functional and reporting responsibilities. Maaksons also holds a no-limit contract license and has demonstrated strong capabilities in executing turnkey projects, while maintaining a sizeable portfolio of investment properties across diverse locations. In line with its strategy to adapt to the changing macroeconomic environment, Maaksons continues to selectively undertake projects with higher margins and quicker cash conversion cycles. The Company has recently initiated infrastructure development works for the Nawaz Sharif IT City (a CBD project), Enertech Building, and the Lake City Meadows Project—a joint venture with Lake City, under which both parties hold 50% stakes in State Life Society near DHA Phase 4. Additionally, other projects in Lahore and Islamabad are expected to support revenue growth over the coming years. The realization of Lake City Meadows, as anticipated, will play a pivotal role in shaping the Company’s future outlook, although its ultimate impact will depend on timely execution and market dynamics. Meanwhile, most of the earlier projects are nearing completion. However, projects with DHA Lahore and certain real estate developments have seen limited progress owing to weak economic viability.
During 9MFY25, Maaksons reported a topline of PKR 4.5 billion (9MFY24: PKR 5.78 billion; FY24: PKR 6.76 billion), reflecting a slight dip. Despite this, profitability improved significantly, with net profit rising to PKR 843 million in 9MFY25 (9MFY24: PKR 552 million; FY24: PKR 318 million). Gross margins expanded to 30.1% in 9MFY25 (FY24: 10.9%; 9MFY24: 22.2%), while net margins strengthened to 18.7% (FY24: 4.7%; 9MFY24: 9.6%). The improvement in margins is attributable to the Company’s selective bidding strategy and focus on short-duration, high-return projects. Maaksons maintains a conservative financial profile with limited external borrowings, supported by a mix of funded and non-funded banking facilities to manage its business requirements. The Company’s equity base stood at PKR 5.7 billion in 9MFY25 (FY24: 4.9 billion). Comfort is further drawn from the sponsors’ sizeable investment properties, strong liquidity position, and the ability to strategically realign the business in response to sectoral and macroeconomic changes. The assigned ratings continue to reflect the Company’s experienced management, prudent project selection strategy, strong land and property bank, and sustained profitability. However, revenue volatility arising from selective participation, project delays, and payment issues from certain clients remains a key constraint.
The ratings incorporate synergies within the Maaksons Group, supported by sizeable investment properties, experienced management, and a conservative financial profile. The Company’s selective focus on high-margin, short-duration projects underpins profitability. Going forward, timely completion of ongoing contracts, execution of new projects, and revenue diversification will remain pivotal, alongside adherence to sound corporate governance practices.

About the Entity
Maaksons Engineering Corporation Limited, initially named as M. A Aleem Khan & Sons, was officially registered as a Private Company in 1984, but has been in business since 1951. Maaksons scope of work comprises construction of roads and highways, bridges and structures, residential and commercial buildings, canals and tunnels, etc. Significant projects to the company’s credit are 9th Avenue and Jinnah Avenue in Islamabad, Signal Free Corridor Islamabad Highway, and in DHA Lahore, Metro Lahore, 29-storey Telecom Tower Islamabad, Gulberg Green, 3x210 Thermal Power Station Muzaffargarh, Chashma Canal, etc., to name a few. BOD comprises six members, all of whom belong to the sponsoring family. The Company’s ownership is also collectively divided among members of the sponsoring family.