Press Release
VIS Reaffirms Entity Rating of Gatron (Industries) Limited
Karachi, August 12, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Gatron (Industries) Limited (‘Gatron or the ‘Company’) to 'A-/A2' (‘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 remained ‘Stable’. Previous Rating action was announced on July 08, 2025.
Gatron (Industries) Limited is a publicly listed company incorporated in 1980 and is part of the Gani & Tayub Group (G&T). The Company is primarily engaged in the manufacturing and sale of polyester-based products, with a diversified product portfolio comprising polyester filament yarn (PFY), PET preforms, polyester polymer/chips, and knitted fabrics. Gatron caters to various industrial and textile-related segments through its integrated manufacturing operations. The Company’s head office is located in Karachi, while its manufacturing facilities are situated in Hub, Balochistan.
The assigned ratings reflect Gatron (Industries) Limited's leading position in Pakistan's polyester filament yarn market, its established operating track record, and continued support from the sponsoring group, as demonstrated through the major equity injection undertaken in FY24 to support the Company during the prolonged industry downturn. Management's strategy remains focused on improving profitability rather than pursuing volumetric growth, given the constraints imposed by the existing energy mix. Accordingly, the Company is undertaking cost rationalization initiatives, particularly through renewable energy projects aimed at reducing energy costs, while also benefiting from the enforcement of anti-dumping duties, which have contributed to an improvement in product prices.
The ratings also incorporate the Company's financial risk profile, with borrowings declining and operating cash flow generation improving during 9MFY26. Liquidity indicators remained broadly adequate, while capitalization metrics continued to reflect the impact of accumulated losses from previous periods. Going forward, the ratings remain dependent on the successful execution of management's business plans, particularly sustained improvement in pricing, continued cost rationalization, restoration of profitability, and maintenance of prudent leverage and working capital management. Continued support from the sponsoring group, if required, will remain an important rating consideration.
For further information on this rating announcement, please contact at 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