Press Release
VIS Reaffirms Entity Ratings of J.K Spinning Mills Limited
Karachi, August 21, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of J.K Spinning Mills Limited at ‘A-/A1’ (Single A minus/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' indicates Strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remain ‘Stable’. Previous rating action was announced on July 31, 2025.
J.K Spinning Mills Limited (‘JKSM’ or ‘the Company’) is a public listed company, engaged in the textile business. Located in Faisalabad, the Company operates a vertically integrated manufacturing facility with operations spanning spinning, weaving, processing, stitching, and the buying and selling of yarn, fabrics, and other textile products.
JKSM is part of the JK Group, an established business group with a diversified presence across the power, textile, food, and technology sectors. The assigned ratings reflect Company’s vertically integrated operations with healthy capacity utilization levels across all segments. The ratings also draw support from an increasingly export-oriented sales mix, improved customer diversification, moderate capitalization, adequate liquidity, and satisfactory debt servicing capacity.
The Company’s profitability has shown recovery during FY26, supported by improved gross margins arising from a favorable sales mix and cost efficiencies, while the bottom line benefited from lower finance costs. Ongoing BMR, higher in-house utilization of spinning capacity, and expansion of solar power capacity are expected to further enhance operational and cost efficiencies.
Going forward, the ratings will remain sensitive to the Company’s ability to sustain improvement in profitability and maintain a moderate capitalization profile in the amidst of planned debt-funded capital expenditure.
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