Press Release
VIS Reaffirms Entity Ratings of Nishat (Chunian) Limited
Karachi, August 27, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Nishat (Chunian) Limited at ‘A-/A2’ (Single A minus/A two). 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 'A2' indicates Good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remain ‘Stable’. Previous rating action was announced on July 30, 2025.
Incorporated in 1990, Nishat (Chunian) Limited (‘NCL’ or ‘the Company’) is a Public Listed Company and a major player in the country’s textile sector, involved in spinning, weaving, dyeing, printing, stitching, and processing of yarns, fabrics, and made-ups from raw cotton, synthetic fibers, and cloth. The Company’s manufacturing sites are located across Kasur and Raiwind while its registered office is situated at Gulbery II, Lahore.
The assigned ratings incorporate the medium business risk profile of Pakistan’s textile sector, characterized by economic cyclicality, intense competition, and exposure to fluctuations in domestic and international demand. The ratings also take into account NCL’s established market position, vertically integrated operations, healthy capacity utilization, and presence in export markets through its own subsidiaries. The financial risk profile remains constrained by an elevated capitalization profile and weak debt coverage, with DSCR remaining below 1.0x. However, profitability has shown recovery during 9MFY26, supported by growth in weaving and home textile segments, resulting in higher margins.
Going forward, with BMR plans largely completed, no significant capex is expected, limiting any need for further long-term debt, supporting stability in capitalization indicators. Sustained profitability, improvement in debt service coverage, and gradual deleveraging of balance sheet will remain key considerations from a ratings perspective.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf