Press Release

VIS Reaffirms Entity Rating of Sapphire Textile Mills Limited

Karachi, November 03, 2025: VIS Credit Rating Company Limited (VIS) reaffirms the entity ratings of Sapphire Textile Mills Limited at ‘A+/A1’ (Single A Plus/A One). Long-term entity rating of ‘A+’ reflects good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short-term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on October 07, 2024.

Sapphire Textile Mills Limited (‘STML’ or ‘the Company’) is a public limited company incorporated in 1969. STML operates vertically integrated operations comprising of spinning, weaving, finishing, printing and dyeing with manufacturing facilities based in Punjab and Sindh with the registered office located in Karachi.

STML, the flagship entity of one of Pakistan’s most diversified conglomerates with a strong financial base and extensive industry experience, maintains a leading position in the textile sector. The assigned ratings reflect STML’s market standing, underpinned by decades of export experience and established relationships with global clients. Its vertically integrated operations across spinning, weaving, finishing and home textiles ensure cost efficiency, quality control and margin stability. The Company’s financial risk profile remains manageable, with gearing below 1x, stable leverage and prudent debt management. Strong other income from the Group’s equity portfolio and strategic investments continues to support profitability. STML is poised for expansion aimed at further diversification by setting up of Soda Ash manufacturing facility through its wholly owned subsidiary, which is expected to impact debt coverage indicators in the medium term, with gradual improvement projected over time.


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


Applicable Rating Criteria: Corporates
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 November 03, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.