Press Release

VIS Reaffirms the Entity Ratings of The Searle Company Limited

Karachi, October 02, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of The Searle Company Limited (‘TSCL’ or the ‘Company’) at ‘AA-/A1’ (Double A Minus/A One). Medium to long term rating of ‘AA-’ indicates high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable.’ The previous rating action was announced on September 30, 2025.

The rating reflects TSCL’s established position in Pakistan’s pharmaceutical sector, supported by recognized brands, a diversified therapeutic portfolio and stable demand for medicines. Its association with the International Brands Limited Group provides strategic support through established distribution and management expertise.

The rating takes into account the recovery in profitability. The return to profit in FY25 largely reflected a substantially lower impairment charge and reduced finance costs, while underlying operating profit declined. In 9MFY26, stronger sales, improved product availability, pricing adjustments and a more favorable product mix drove a marked improvement in gross margins and earnings. The planned expansion into biological products and GCC markets offers further diversification, although sustained contributions from these initiatives remain to be established.

Financial risk has improved following the repayment of acquisition-related debt, resulting in a more conservative capital structure, stronger debt coverage and improved cash generation. The rating remains sensitive to the sustainability of operating margins, management of imported input costs and working capital, and the impact of planned capital expenditure on the Company’s financial profile.

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













Applicable Rating Criteria:
Corporate Ratings
https://docs.vis.com.pk/Methodologies-2026/Corporate-Rating-2026.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 October 02, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.