Press Release

VIS Reaffirms Entity Ratings of Rajby Textiles (Pvt) Limited

Karachi, October 22, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Rajby Textile (Pvt) Limited 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 September 25, 2025.

Incorporated in 2014, Rajby Textiles (Pvt) Limited (‘RTPL’ or ‘the Company’) is a private limited company specializes in denim fabric production with operations including weaving and finishing. The registered office, factory building and plant are all located at Bin Qasim Town, Landhi, Karachi. During FY26, the Company has acquired a garment manufacturing facility in Korangi Industrial Area, Karachi, as part of its efforts to achieve forward integration.

The assigned ratings reflect RTPL’s established presence in the textile sector, high-capacity utilization, and improved gross margins, supported by energy cost savings and a favorable shift towards direct exports. Ratings also draw support from the Company’s customer diversification efforts, adequate liquidity, and strong debt coverage. RTPL's ongoing expansion into garment manufacturing is expected to support growth through forward integration and enhanced value addition, while investment in alternative energy sources is expected to improve cost efficiencies.

However, elevated leverage following debt-funded expansion and further capex requirements is a key consideration from ratings perspective. Meanwhile, profitability may also be affected by the time required for the stitching unit to become fully operational. Successful ramp-up of the new garment facility, maintaining capitalization at optimum levels, and realization of anticipated cost efficiencies will remain important going forward.

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/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 22, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.