PACRA Maintains the Entity Ratings of Mumtaz Feeds & Allied Industries (Pvt.) Limited

The ratings of Mumtaz Feeds & Allied Industries (Pvt.) Limited (“Mumtaz Feeds” or “the Company”) reflect its sustained business profile within Pakistan’s poultry feed segment during FY26, underpinned by an established product portfolio spanning broiler and layer feed formulations, with Broiler Control Finisher remaining the flagship product line. The Company operates an installed annual production capacity of 144,000 MT (40 MT per hour). Mumtaz Feeds benefits from its integration into the broader Mumtaz Group, which maintains an established footprint across the agro-based value chain. Group operations encompass solvent extraction through Mumtaz Agro Industries and broiler farming via Mumtaz Chick and Mumtaz Protein Farms, which operate facilities across Southern Punjab. This operational integration affords meaningful procurement synergies particularly through soybean meal sourced via group entities. Industry dynamics remain supportive on a volumetric level; however, operating margins continue to be constrained by intense competition across a fragmented landscape of integrated players and standalone feed mills. On the raw material front, maize constitutes the principal feed component, whereas reliance on imported soybean meal leaves the sector vulnerable to international price volatility and exchange rate fluctuations. Crucially, the resumption of genetically modified (GM) soybean imports during the period stabilized feed supplies and alleviated prior supply chain bottlenecks.
In FY26, the Company reported revenues of ~PKR 5,487mln, reflecting a YoY decline of ~5.7% (FY25: ~PKR 5,819mln). This contraction was primarily driven by continued reliance on internal group demand, with comparatively less strategic focus placed on expanding external market share. Despite top-line softening, profitability remained resilient: gross margin adjusted slightly to ~3.9% (FY25: ~4.1%), while net margin improved marginally to ~1.8% (FY25: ~1.7%), resulting in net income of ~PKR 101mln (FY25: ~PKR 102mln), remaining broadly consistent year-on-year. The Company actively reduced debt levels and finance costs, further lowering its already conservative leveraging to ~5.8% in FY26 (FY25: ~8.1%), while maintaining comfortable cash flow coverage metrics. Working capital management remained a primary operational pressure point, as the operating cycle stretched due to inventory accumulation (~PKR 2,009mln), which was predominantly funded through supplier credit (~PKR 1,043mln). Governance structure remains family-dominated, with Mr. Aamir Ali Khan serving as Chief Executive Officer of Mumtaz Feeds alongside executive roles across other group entities. The lack of independent board representation highlights room for enhanced corporate governance and board diversity going forward.
Looking ahead, the ratings remain dependent on the Company’s ability to diversify its revenue base beyond group affiliates, manage working capital cycles efficiently amidst raw material price swings, and sustain its low-leverage financial risk profile to preserve financial flexibility.

About the Entity
Mumtaz Feeds & Allied Industries (Pvt.) Limited ("Mumtaz Feeds" or "the Company") was incorporated in 2016 and commenced commercial operations the following year. The Company is engaged in the production and sale of broiler and layer feed across a range of formulations, supported by an installed annual production capacity of 144,000 MT (40 MT per hour). Ownership remains concentrated within the sponsoring family, with Mr. Aamir Ali Khan serving as both Chief Executive Officer and Chairman of the Board.