Press Release
VIS Reaffirms Entity Ratings of Hi-Tech Lubricants Limited
Karachi, May 04, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Hi-Tech Lubricants Limited (“HTL” 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' suggests good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous ratings action was announced on December 30, 2024.
Hi-Tech Lubricants Limited (‘HTL’ or ‘the Company’) operates in Pakistan’s lubricants and petroleum sectors, with its core business centered on ZIC-branded lubricants blended locally from materials sourced from SK Enmove Co., Ltd., South Korea. As the exclusive distributor of ZIC lubricants in Pakistan, the Company supplies a range of synthetic and semi-synthetic lubricants catering to automotive and industrial applications. Distribution is carried out nationwide through a network of handlers and distributors. HTL also manages its wholly owned subsidiary, Hi-Tech Blending (Private) Limited (HTBL), which commenced commercial blending operations in 2016. These operations primarily support HTL’s lubricant business, while also generating additional revenue through external sales. The Company also has presence in the petroleum sector through its Oil Marketing Company (OMC) operations under the HTL Fuel Stations brand. At present, HTL operates 61 dealer-managed fuel stations, with 37 located in Punjab and 24 in Khyber Pakhtunkhwa (KPK). In addition, HTL operates HTL Express Centers, with eight centers currently co-located with fuel stations.
Assigned ratings take in to account moderate business risk profile of the lubricant segment, supported by relatively higher margins, stable demand from automotive and industrial end-users, and the Company’s market position in the premium lubricant segment, backed by nearly three decades of operating history. Further, as fuel marketing business now contributes major part of the revenues, assigned ratings also take into account the high business risk profile of the OMC sector, driven by a regulated pricing regime, intense competitive dynamics, exchange rate fluctuations and sensitivity to macroeconomic variables. Notwithstanding these challenges, the Company’s diversified operating profile, with presence across both fuel marketing and lubricant segment provides a degree of earnings resilience.
Assigned ratings also incorporate improvement in the Company’s financial profile, particularly in 1QFY26, with profitability margins supported by enhanced operational efficiency and upward price adjustment. The Company’s liquidity and capitalization profiles are considered adequate, while the debt servicing coverage strengthened in 1QFY26. In addition, ratings reflect operational integration at the Group level, supported by HTL’s wholly owned subsidiary, Hi-Tech Blending (Private) Limited. Going forward, the Company’s ability to enhance market share through volume growth while sustaining profitability amid sector volatility, together with maintaining debt coverage metrics and further strengthening its liquidity and capitalization profiles, will remain important considerations for the ratings.
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