Press Release

VIS Reaffirms Entity Ratings of Shadab Textile Mills Limited

Karachi, January 20, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Shadab Textile Mills Limited (‘STML’ or ‘the Company’) at 'A-/A2' (Single A minus/A Two) with a “Stable” outlook. 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. Previous rating action was announced on December 27, 2024.

STML was incorporated as a public limited company in August 1979 and is listed on the Pakistan Stock Exchange (‘PSX’). STML is engaged in the business of manufacturing, selling, buying and dealing in polyester yarn. The registered office of the Company is situated in Lahore while the manufacturing facilities of the Company are located in District Kasur and District Nankana Sahib.

The assigned ratings reflect the Company’s long-standing presence in the polyester yarn market, supported by an established customer base that underpins relatively higher capacity utilization. While demand challenges and cost pressures persist, the Company has continued to demonstrate resilience through sustained topline growth. Ongoing investments in renewable energy are expected to alleviate energy-related cost pressures, thereby supporting margin enhancement over the medium term. The financial risk profile remains contained, characterized by manageable gearing and leverage levels. Going forward, enhancement in profitability profile while maintaining coverage and capitalization metrics will remain important for ratings.

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





Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.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 January 20, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.