Press Release
VIS Reaffirms Entity Ratings of EMCO Industries Limited
Karachi, June 18, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of EMCO Industries Limited (‘EMCO’ or ‘the Company’) 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 rating is ‘Stable’. Previous rating action was announced on May 23, 2025.
EMCO Industries Limited was incorporated in 1954 as a Joint Stock Company in Pakistan by the name of Electric Equipment Manufacturing Company (Private) Limited. Later, it was converted into a public company in 1983, and its name was changed to EMCO Industries. The Company is engaged in the manufacturing of porcelain insulators, switchgear, RTV coating, chemical porcelain, special porcelain and metal components. EMCO’s manufacturing facility is located at Lahore-Sheikhupura Road, Lahore, while its registered office is situated at Egerton Road, Lahore.
The assigned ratings reflect EMCO’s dominant market position in the local high voltage porcelain insulators segment, catering to the power transmission and distribution sector. Overall business risk remained elevated during FY25 due to lower demand from DISCOs and NTDC amid power sector reprofiling, inventory management across DISCOs and slower execution of public-sector projects. However, the Company continued to focus on export growth and product diversification, including hardware/cross arms to support topline. During FY25, profitability was impacted by lower local dispatches, introductory pricing in export markets and higher contribution from low-margin hardware products. However, profitability improved during 9MFY26, with recovery in sales, profitability and cash flows, supported by improved dispatches, export growth and lower finance costs. Liquidity profile remained manageable. Debt coverage weakened in FY25; however, improvement was noted during 9MFY26 with recovery in FFO and DSCR. Going forward, the ratings will remain dependent on sustained improvement in project execution, growth in topline and improvement in margins, timely receivable collections, and maintenance of liquidity, coverage and capitalization indicators.
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