Ittefaq Iron Industries Limited

Important PSX Risk Warning Alert

The Pakistan Stock Exchange company page currently displays the following Risk Warning Alert:

The Company is in continuous violation as specified in Clauses 5.11.1. or 5.11.2. and carry risk of suspension of trading or being delisted from the Exchange and may be subject to such terms and conditions as specified by the Exchange.

This is a material risk for investors. Check the latest PSX announcements to understand the status of the violations and whether the exchange has issued any subsequent notice or action. Shariah-compliant classification does not remove the separate risks of suspension, delisting, financial distress, or trading liquidity.

Source: Official PSX company page — Ittefaq Iron Industries Limited.

Company Overview

Ittefaq Iron Industries Limited (PSX: ITTEFAQ) is a Pakistani steel manufacturer operating in the engineering sector. Its principal business is the manufacturing of iron bars, girders, and related products used in construction and other industrial applications.

The company was listed on the Pakistan Stock Exchange on July 3, 2017. Its head office is located at 40-B-II, Gulberg III, Lahore, Pakistan, and its financial year ends on June 30.

Steel manufacturers are influenced by construction activity, infrastructure spending, steel scrap and other input costs, energy prices, transportation expenses, and competition from domestic and imported products. These factors can materially affect selling prices, production costs, margins, and working-capital requirements.

Source: PSX company profile.

Business Model

The company manufactures iron bars, girders, and related steel products. Demand for these products is closely linked to residential and commercial construction, infrastructure projects, and general economic activity.

Investors researching the business should examine production volumes, capacity utilisation, selling prices, raw-material costs, energy expenses, and customer demand. Because steel production can require substantial working capital, changes in inventory, receivables, supplier credit, and borrowing costs may also affect financial performance.

Financial Performance

PSX financial data reports the following annual figures for the years ended June 30:

Financial metric	FY2026	FY2025
Sales	Rs2.404 billion	Rs2.652 billion
Profit after taxation	Loss of Rs321.983 million	Loss of Rs657.980 million
Earnings per share (EPS)	-Rs2.23	-Rs4.56

In FY2026, reported sales declined compared with FY2025, while the reported net loss narrowed. Although this represents an improvement in the loss figure, the company remained loss-making. Investors should review the audited annual report for explanations of the results and examine gross margins, finance costs, cash flows, borrowings, and liquidity.

Figures above are based on the financial data presented on the PSX company page; consult the company's original audited statements for the complete reporting basis and details.

Source: PSX financials and company announcements.

Shariah Compliance Status

Ittefaq Iron Industries Limited is included in the SECP Register of Shariah-Compliant Companies dated June 30, 2026.

A previous PSX-KMI All Share Index recomposition notice dated November 24, 2025, also classified the company as compliant. The screening ratios reported in that notice were:

• Debt ratio: 26.40%
• Non-compliant investment ratio: 0.00%
• Non-compliant income ratio: 0.59%
• Illiquid assets ratio: 63.84%

These ratios are historical screening figures from the November 2025 notice, not a new calculation for June 2026. Refer to the latest official register and applicable screening notices for current classification information.

The company's published financial disclosure also states that its borrowing facilities were maintained with conventional banking institutions and that markup expense was incurred. Readers should not interpret inclusion in a screening register as a guarantee that every financing arrangement is Shariah-compliant or that the company's status will remain unchanged.

Sources:

• SECP Register of Shariah-Compliant Companies — June 30, 2026
• PSX-KMI recomposition notice — November 24, 2025
• Company financial disclosure

Key Risks to Consider

Trading and listing risk: PSX displays a Risk Warning Alert regarding continuous violations and potential suspension or delisting. Investors should verify the current status directly with PSX announcements.

Ongoing losses: The company reported losses in FY2024, FY2025, and FY2026. A sustained return to profitability has not been established by these annual figures.

Steel-price volatility: Changes in raw-material costs and selling prices can significantly affect margins.

Construction-sector exposure: Demand can be affected by economic conditions, interest rates, construction activity, and infrastructure spending.

Financing and liquidity: Working-capital needs, borrowing costs, and cash-flow pressures can affect financial stability.

Shariah screening changes: Compliance status and screening ratios may change as financial information is updated and new screening reviews are issued.

How Investors Can Research ITTEFAQ

Before evaluating the shares, review the latest audited annual report, quarterly financial statements, PSX notices, debt and cash-flow information, and any announcements addressing the Risk Warning Alert. Consider whether operating performance is improving, whether losses are narrowing sustainably, and whether the company can meet its financial obligations.

For a Shariah-focused investment process, verify the latest official screening status separately from the company's operating performance and PSX listing risk.

Official Resources

• PSX company profile, financials, and announcements
• Ittefaq Steel official website
• SECP Register of Shariah-Compliant Companies — June 30, 2026
• PSX Shariah-compliant investment resources

This profile supports company research and investor education. It is not a recommendation to buy or sell the stock. Historical financial results and Shariah screening status do not guarantee future performance or continued compliance.