Multinet Pakistan (Private) Limited was incorporated in Pakistan on November 04, 1996, as a Private Limited Company under the repealed Companies Ordinance, 1984, now superseded by the Companies Act, 2017. The Company operates as an unlisted private entity. Its registered and principal place of business is located at 1-D, 203, Sector-30, Korangi Industrial Area, Karachi, Sindh, Pakistan. No mergers, demergers, or structural reorganisations have been reported during the period under review.

The Company was co-founded by Mr. Adnan Asdar Ali and Mr. Nasser Khan Ghazi in 1996, initially operating as a branded reseller of internet and data connectivity services, with early growth driven by expansion of its reseller footprint in Pakistan’s emerging telecommunications market. In 2006, TM International Limited, subsequently rebranded as Axiata and a subsidiary of Telekom Malaysia, acquired an 89% majority shareholding, supporting the Company’s subsequent infrastructure-led expansion. In November 2018, Axiata fully exited the Company, transferring its entire shareholding to Mr. Adnan Asdar Ali and reverting the Company to founder-led private ownership. Since then, the Company has continued to expand its network infrastructure, including fiberisation of 1,000 towers to date, while broadening its service portfolio through partnerships with global technology manufacturers and carriers. Multinet currently provides connectivity infrastructure and solutions to telecom operators, corporates, SMEs, and financial institutions.

Multinet Pakistan (Pvt.) Limited provides telecommunications infrastructure, connectivity solutions, and ICT services through four business units: Enterprise, Carrier Domestic, Carrier International, and Long Distance International. Its Enterprise segment serves corporates, financial institutions, MNCs, and SMEs through connectivity, cloud, managed IT, and cybersecurity solutions, while the Carrier segments provide domestic and international connectivity to telecom operators, ISPs, cable operators, and global carriers. The Company operates a self-healing optical fibre network spanning over 14,000 km and more than 120 cities across Pakistan, supported by international points of presence and terrestrial extensions. Its service portfolio also includes data centre and co-location, voice, conferencing, hosting, and cloud solutions. The Company serves a broad customer base, with significant exposure to the telecommunications and financial services sectors, and its network carries approximately 25% of cellular traffic and 50% of financial market traffic in Pakistan.

The ownership structure of Multinet Pakistan (Pvt.) Limited is highly concentrated. As of the latest available reporting date, Mr. Adnan Asdar Ali, the co-founder and Chairman of the Company, holds a 99.9% stake, constituting the dominant controlling interest. The remaining shares are nominally distributed among the Company's directors and the Chief Executive Officer. 

The ownership structure has remained stable following the full exit of Axiata in November 2018, after which Mr. Adnan Asdar Ali assumed complete ownership of the entity. There have been no subsequent ownership disputes, share transfer events, or changes in the controlling interest since that transition. The sponsor has demonstrated a sustained commitment to the Company over multiple business cycles, including the recent infrastructure expansion phase. No formal lock-in agreements or structured succession arrangements have been publicly disclosed; however, the continued operational involvement of the founder-chairman provides a degree of continuity at the ownership level.

Mr. Adnan Asdar Ali brings more than 40 years of accumulated experience in connectivity-based solutions and network infrastructure to the enterprise. As co-founder, he has guided the Company through multiple phases of corporate evolution, including its early-stage reseller model, the transition under Axiata's institutional ownership, and the subsequent reversion to founder-led private management.

The financial strength of the sponsor is assessed as adequate based on available information. The sponsor's multi-sector engagement across software, telemedicine, water filtration, and mobile application development suggests a diversified asset base. The sponsor's capacity to extend extraordinary financial support to the Company has not been explicitly tested through formal capital injections in recent periods; however, his sustained engagement and the absence of any declared liquidity stress at the ownership level support the adequacy assessment.

The Board of Directors of Multinet Pakistan (Pvt.) Limited comprises four members. Mr. Adnan Asdar Ali serves in the capacity of an Executive Director, while Mr. Sohail P. Ahmad, Mr. Joozer JiwaKhan, and Mr. Anwar Ali Khan serve as Independent Directors. The Board has constituted an Audit Committee, which operates under the chairmanship of Mr. Sohail P. Ahmad. The Audit Committee is mandated to oversee the integrity and effectiveness of the external audit process, review internal controls, and provide governance oversight over financial reporting. The Board structure reflects a majority independent composition at the non-executive level, which supports the principle of effective oversight.

Mr. Adnan Asdar Ali, serving as Executive Director and Chairman, is the co-founder of the Company with more than four decades of experience in connectivity infrastructure and network-based solutions. His career spans the full arc of Pakistan's telecommunications sector development, and he has been directly responsible for building the Company's national fibre network and its partnerships with global technology manufacturers and international carriers. Mr. Sohail P. Ahmad serves as an Independent Director and chairs the Audit Committee, bringing governance and oversight expertise to the Board. Mr. Joozer JiwaKhan and Mr. Anwar Ali Khan serve as Independent Directors, contributing to the Board's broader deliberative capacity. The collective composition of the Board reflects a combination of deep sector experience through the founder-chairman and independent oversight through the three non-executive members.

The Board has demonstrated effectiveness in establishing an oversight framework through the operationalisation of the Audit Committee, which conducted its activities during the year ended December 2025 under the chairmanship of Mr. Sohail P. Ahmad. The roles of Chairman and Chief Executive Officer are separated, with Mr. Adnan Asdar Ali occupying the Chairman and Executive Director position and Mr. Adnan Hayat Zaidi serving as the Chief Executive Officer, which provides a structural delineation between ownership-level governance and executive management.     

The external audit of the Company's financial statements for the period ended June 30, 2026, was conducted by Baker Tilly Mehmood Idrees Qamar, a firm that holds QCR-rated status and is included in the State Bank of Pakistan's Category A panel of auditors. Based on the review, no matters have come to the auditors’ attention that cause them to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the applicable financial reporting framework. No modified review conclusion or emphasis of matter has been noted for the period under review.

The Company’s organizational structure reflects clear reporting lines and is split between Operations, Administrative, Legal, Human Resource and Business Development. Each function is monitored by head of department, who reports to the CEO.

The senior management team of the Company is composed of experienced and professionally qualified individuals with substantial tenures within the organisation. Mr. Adnan Hayat Zaidi serves as the Chief Executive Officer. He holds a graduate qualification in information technology and brings over 25 years of experience in the technology industry, having been associated with the Company since 2002. Mr. Omer Zahoor, the CFO, is a Chartered Accountant and has an overall experience of 15+ years and is associated with the Company since 2014. Executive turnover across the senior team has been low during the review period, indicative of a stable management environment.

The Company has one management committee in place named Steering Committee. It includes all the departmental heads, along with the CEO (Mr. Adnan Hayat Zaidi). Policies, procedures, budgets and key performance parameters are discussed in the committee meetings regularly to review activity. Whereas, weekly and monthly reports are shared with the CEO regarding the projects’ status.

The Company has deployed Oracle as its Enterprise Resource Planning system, providing an integrated platform for financial management, operational data processing, and cross-functional reporting. Oracle ERP supports the management's ability to consolidate operational and financial information across the Company's multi-segment structure, facilitating timely and accurate decision-making. Management reporting is conducted on a weekly and monthly basis through structured submissions from departmental heads to the CEO, enabling performance tracking against budgets and key performance indicators.

The internal audit function of Multinet Pakistan (Pvt.) Limited is conducted by Ernst and Young, one of the globally recognised professional services firms, which provides the function with a high degree of independence from executive management. EY conducts quarterly reviews of the Company's internal controls and submits its findings directly to the Board of Directors. The presence of an external, independent internal auditor supported by a Board-level Audit Committee creates a robust two-tier control structure appropriate to the scale and complexity of the Company's operations.

Pakistan’s Information and Communication Technology (ICT) sector continues to be one of the fastest-growing segments of the services economy, supported by rising digital adoption, expanding connectivity, and increasing demand for IT-enabled services. IT and ICT services exports reached a record USD 4.6 billion in FY26, growing ~20.6% YoY from USD 3.8 billion in FY25. During 9MFY26, ICT export remittances stood at USD 3.38 billion, while broadband subscribers reached 161 million, with penetration of 64.2%. Around 97% of cellular sites are 4G-enabled, covering approximately 92% of the population. Telecommunications infrastructure continues to expand, with total telecom subscriptions reaching 207.2 million and sector revenues amounting to PKR 837 billion during FY26. The recently concluded spectrum auction, generating approximately USD 510 million, marks a significant step towards 5G deployment and further expansion of high-speed connectivity. The government has also set an ambitious target of increasing ICT exports to USD 25.1 billion by 2030, supported by initiatives aimed at digital transformation, AI adoption, and skills development. The outlook for the sector remains closely linked to continued investment in fibre-optic networks, data centres, cloud infrastructure, and high-speed connectivity, creating opportunities for wholesale connectivity and infrastructure providers. However, the sector remains exposed to foreign exchange volatility, regulatory developments, cybersecurity threats, and the increasing capital requirements associated with network and digital infrastructure expansion.

Multinet Pakistan (Pvt.) Limited occupies a materially significant position within Pakistan's telecommunications infrastructure ecosystem. The Company's network carries 25% of the country's cellular traffic and 50% of financial market data traffic, reflecting the depth of its infrastructure embeddedness and the criticality of its network to the country's financial and telecommunications systems.

The company demonstrated sustained top-line momentum, generating net revenue of PKR 2,871 million in 1HCY26 a 10.3% YoY increase from PKR 2,604 million in 1HCY25. Growth was anchored across the Company’s primary operating segments: Enterprise Business Units (EBU), Carrier Business Unit Domestic (CBUD), Carrier Business Unit International (CBUI), Long Distance International (LDI), and broader International Business operations. This performance reflects strengthened demand for corporate ICT solutions and robust telecom infrastructure connectivity. The steady expansion across its core client streams reinforces operational stability, positioning the Company favorably to surpass historical full-year growth trajectories and maintain a resilient market presence moving forward.

The company delivered sustained profitability across operational metrics during 1HCY26, underpinned by enhanced cost optimization and infrastructure scalability. Gross profit margin expanded to 40.2% from 38.0% in 1HCY25 aligning closely with the 41.3% achieved in CY25 as net revenues of PKR 2,871.63 million outpaced the cost base. Operational efficiency remained intact, with the operating margin holding steady at 15.0% (1HCY25: 14.8%; CY25: 15.1%), reflecting disciplined overhead management across enterprise and telecom services. Net profit reached PKR 199.41 million with a slightly improved margin of 6.9% (CY25: 6.7%), demonstrating resilient bottom-line conversion despite elevated finance costs and taxation pressures.

The long-term viability of the Company's competitive positioning is supported by several structural factors, the embeddedness of its infrastructure within the national telecommunications ecosystem, the long-term contractual nature of its carrier relationships, and the growing enterprise demand for integrated digital infrastructure services. The ongoing tower fiberisation programme, under which 1,000 towers have been fiberised to date using the HBL facility backed by the InfraZamin guarantee, represents the Company's most significant growth capital expenditure initiative and positions it as a preferred infrastructure partner for the anticipated 5G rollout across Pakistan's major cities.

The Company achieved enhanced working capital efficiency as of June 2026 relative to the corresponding period. Trade receivable collection strengthened, reducing to approximately 45 days in 1HCY26 from 57 days in 1HCY25, while inventory holding remained lean at 17 days. Conversely, payable days lengthened sharply to roughly 210 days from 115 days, propelled by a expansion in trade liabilities. Consequently, the cash conversion cycle deepened further to (149) days from (38) days previously.

The Company posted an improvement in free cash flow from operations (FCFO), rising to PKR 637 million in 1HCY26 from PKR 567 million in the prior-year period. This accretion reinforced internal cash generation, enhancing capacity to meet debt obligations and operational needs. Despite a slight rise in finance costs to PKR 152 million (1HCY25: PKR 141 million), the coverage ratio strengthened to 4.2x from 4.0x, driven by cash flow growth outpacing financing expenses. Relative to CY25 where FCFO reached PKR 1,122 million with 4.2x coverage, the current trajectory demonstrates robust consistency with historical debt-servicing metrics and financial stability.

The company maintains a conservative capital structure, as evidenced by leveraging ratio of 20.8% as of June 30, 2026. Total borrowings stood at PKR 1,920 million against shareholders' equity of PKR 7,439 million, reflecting a measured approach compared to 18.7% in June 2025 and 24.1% at CY25 year-end. This deleveraging from CY25 stems primarily from a targeted reduction in non-current liabilities. Concurrently, ongoing profit retention expanded revenue reserves to PKR 3,792 million, reinforcing the equity base. This preference for longer-term funding mitigates refinancing exposure and ensures adequate headroom to comfortably support operational needs and debt commitments.