Press Release

Karachi, June 10, 2026: VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of Deharki Sugar Mills (Private) Limited (‘DSML’ or ‘the Company’) from ‘A/A2’ (Single A/A Two) to ‘A+/A1’ (Single A Plus/A One). The 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. The short-term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating remains ‘Stable. Previous rating action was announced on May 16, 2025.

DSML was incorporated in Pakistan on December 15, 2016 as a private limited company. The principal activities of the Company are production and sale of crystalline sugar including its by-products i.e., molasses, bagasse, and mud. The Company’s head office is located at Abid Majeed Road, Lahore Cantt with manufacturing facility located at Mirpur Mathelo, Ghotki, Sindh.
DSML being a wholly-owned subsidiary of JDW Sugar Mills Limited, the largest and most established player in Pakistan’s sugar industry, is a key rating factor. The ratings also take into account improvement in the Company’s financial risk profile and strengthening of its relative position among peers. DSML benefits from an experienced management team and sound corporate governance framework. The ratings also reflect inherent risks related to sugar sector, such as partial regulatory intervention in the form of supply management mechanisms and price controls.

The Company recorded higher net sales on account of uptick in sugar volumes in MY25. Gross margins decreased in MY25 due to lower sucrose recovery, though reduced finance costs improved net profit and sustained cash flow. Improvement in crushing output, sugar production, sucrose recovery and moderated finance costs are projected to support profitability and cash flow coverage during MY26. The ratings remain contingent on effective working capital management, particularly balances with growers, along with prudent debt management.

For further information on this ratings 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

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 June 10, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.