Press Release

VIS Reaffirms Entity Ratings of Blessed Textiles Limited

Karachi, May 20, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Blessed Textiles Limited (‘BTL’ or ‘the Company’) at A/A1 (Single A/Single A One). Medium to long term rating of ‘A’ indicates good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of 'A1' suggests strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains Stable. Previous ratings action was announced on February 06, 2025.

BTL listed on the Pakistan Stock Exchange, was incorporated in 1987 as a public limited company and is one of the three textile companies of the Umer Group. The Company is principally engaged in the manufacture and sale of yarn and woven fabric, along with the generation of electricity for self-consumption. The registered office is located in Karachi, while its operational footprint comprises three spinning units and one weaving unit situated in Sheikhupura.

The assigned ratings reflect the well-established operating presence of BTL in the textile spinning and weaving segment, while remaining a part of Umer Group of Companies. The credit profile is characterized by stabilizing performance following FY24 losses, however, profitability continues to remain thin and exposed to demand and cost-side pressures in a commoditized industry with limited pricing flexibility.

Leverage has continued to increase due to reliance on short-term borrowings to meet working capital requirements, though this is considered manageable in view of adequate liquidity levels. Debt coverage indicators remain weak but have shown relative stability, supported in part by lower financing costs and improved profitability compared to the prior year.

Going forward, it is important to improve profitability in order to generate adequate cashflows and debt coverages, while prudently managing capitalization levels to sustain the ratings at the current level.


For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright May 20, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.