PACRA Maintains Entity Ratings of Guard Agricultural Research and Services (Pvt.) Limited.

The ratings reflect Guard Agricultural Research & Services (Pvt.) Limited’s (“Guard” or “the Company”) strengthening business position within Pakistan’s agriculture, seed, and food value chain. Operating under the flagship “Guard” brand, the Company has established a diversified portfolio comprising hybrid and basmati rice seeds, processed basmati rice, wheat seeds, pasta, and salt, marketed domestically and exported to over 45 international destinations across Asia, the Middle East, North America, Africa, Europe, and Australia. Backed by the Guard Group’s diversified industrial base—spanning automotive components, lubricants, friction materials, filters, and food products—Guard benefits from significant operational synergies, economies of scale, and strong governance continuity. The sponsoring family’s multi-generational business expertise and strategic leadership continue to underpin the Company’s credit quality, reinforcing its financial resilience and long-term stability. The Board of Directors, predominantly represented by the sponsoring family, is supported by a technically proficient and experienced management team that oversees the Company’s two principal segments—Agriculture and Food. The Agriculture division focuses on the trading and development of imported hybrid seeds, locally developed rice seeds, and agricultural machinery, while the Food division manages the processing, packaging, and marketing of premium basmati rice, pasta, and salt under the “Guard” label. The Company’s integrated business model ensures complete value-chain control, providing superior quality assurance, operational transparency, and consistency from cultivation through to final distribution.
The rice sector, a significant contributor to Pakistan’s rice sector remains a key contributor to economic growth. While total rice production for CY25 was initially projected at approximately 10mln tons, but recent flooding in Punjab and Sindh affecting ~10–12% of the crop has disrupted supply chains, inundated agricultural land, and exerted upward pressure on domestic prices. These developments have posed significant challenges to both food security and the sector’s export competitiveness. In FY24, the Company recorded a notable 27% year-over-year increase in topline, primarily driven by record-high rice production. This growth was largely attributed to the favorable aftereffects of the floods experienced, which contributed to improved soil fertility and yields. However, this growth momentum could not be sustained in FY25, as adverse climatic conditions and below-average rainfall constrained crop yields, thereby tempering the Company’s revenue trajectory, which recorded a modest increase of approximately 3.8% during the year. The Company’s gross profit margin improved to 16.9% (FY24: 14.1%), reflecting enhanced operational efficiency and disciplined procurement practices.
Prudent management and maintenance of a stable financial risk profile, especially in terms of the working capital, cash flows, and coverages is imperative for the ratings. Additionally, debt servicing, capitalizing international demands, and envisioned improvements in qualitative factors, going forward, remain crucial for the ratings.

About the Entity
The Company is part of the Guard Group, started in 1948 with a strong foothold in the filters & lubricants industry, and was incorporated in 1989. The Company has bifurcated its operations into two divisions: Agriculture and Food. The agriculture division includes trading of imported hybrid & local hybrid seeds under the brand name of ‘Guard’ & imported agricultural machinery. While the Food division includes the processing of basmati rice and trading of pasta & salt under the brand name of ‘Guard’. The Company’s major ownership resides with brothers Mr. Iftikhar Ali Malik (24.24%), Mr. Shahbaz Ali Malik (24.24%), Mr. Waqas Ali Malik (11.64%), Mr. Shahzad Ali Malik (27.25%), and Mr. Hamza Waqar Malik (12.60%).