PACRA Maintains Entity Ratings of Qadir Agro Industries (Pvt.) Limited

The assigned ratings to Qadir Agro Industries (Pvt.) Limited (“the Company”) reflect its established presence in the edible oil extraction and poultry feed industry, supported by the sponsors’ extensive experience and a stable, family-owned ownership structure. The Company, with origins in the 1980s and incorporation in 2007, operates a seed crushing facility and a poultry feed mill in Multan, producing soybean and canola oil and meal along with poultry feed. Ownership remains concentrated within the founding family, namely Mr. Khawaja Mehr Baksh and his sons, Mr. Khawaja Muhammad Shehzad and Mr. Khawaja Muhammad Omer, ensuring continuity in strategic direction, while the sponsors also maintain diversified business interests, including Roomi Industries (Pvt.) Limited. Governance is characterized by a three-member Board comprising only family members, while management operates through a centralized structure with key functional heads reporting directly to top management; although supported by a locally developed ERP system, the internal audit function remains underdeveloped, indicating room for improvement in internal controls and oversight. In FY25, the Company’s revenue declined sharply to ~PKR 2.9 billion from ~PKR 5.3 billion in FY24, primarily due to a contraction in the edible oil segment following the ban on GMO seed imports, which constitute a critical raw material; however, the poultry feed segment continued to provide relative stability to the revenue base, and with the resumption of GMO seed imports, a recovery in sales is expected over the near term. Profitability remained constrained amid lower revenues and relatively elevated operating costs, while working capital requirements, driven by raw material imports and higher inventory levels, were supported by supplier credit. Notwithstanding the topline pressure, the Company’s financial risk profile improved significantly on account of substantial deleveraging, with leverage declining to ~1.2% from ~11.8% in FY24, accompanied by a notable strengthening in coverage indicators.
The ratings are dependent on the management's ability to prudently improve margins, profitability, and overall financial profile of the Company. Meanwhile, strengthening governance practices will have a positive impact on the ratings. Any deterioration in debt coverages leading to higher financial risk or substantial losses will adversely impact the ratings.

About the Entity
Qadir Agro Industries (Pvt.) Limited (‘the Company’) was incorporated in August 2007 as a Private Limited Company. The Company is primarily engaged in the process of seed filtering, crushing and solvent extraction. The Company primarily sells soybean oil/meal, canola oil/meal and poultry feed. The Company has seed crushing capacity of 250MT per day. The capacity of the poultry feed mill, currently, stands at 30MT per hour. The Company’s major ownership resides with Khawaja Mehr Baksh (~34%) and his sons, Khawaja Muhammad Shehzad (~33%) and Khawaja Muhammad Omer (~33%). Mr. Mehr Baksh is the Chairman of the Board, while Mr. Muhammad Shehzad serves as the CEO of the Company.