PACRA retains A1 short-term rating of Mughal Iron & Steel

PACRA has kept Mughal Iron & Steel Industries’ long-term rating at A+ and its short-term rating at A1, with a stable outlook, Mettis Global reported on October 19. The ratings are unchanged from the agency’s October 15, 2025 review, and PACRA assigned no rating watch.

Mughal’s FY26 net sales declined to Rs77.96bn from Rs89.41bn, while its gross margin improved to 11.1% from 9.1% and net margin rose to 3.2% from 1.08%. The non-ferrous operation was temporarily suspended amid commodity-market volatility, while the ferrous segment made up about 91.5% of revenue.

PACRA also cited improved furnace and mill utilization, completed modernization work on the bar re-rolling mill and higher borrowings of Rs38.07bn. After year-end, a subsidiary’s 31.50 MW turbine at its 36.50 MW captive hybrid power plant began commercial operations; the agency said debt servicing, working capital and reliable power supply remain important to the rating.