Press Release

VIS Reaffirms Entity Rating of Kamal Limited

Karachi, May 18, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Kamal Limited (‘KL’ or the ‘Company’) at ‘A/A1’ (Single A / A one). 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 'A1' indicates Strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on assigned ratings remains ‘Stable’. Previous Rating action was announced on April 25, 2025.

KL is a family owned, vertically integrated textile manufacturer with operations covering spinning, weaving, knitting, dyeing, finishing, printing, stitching and garment production. The Company is primarily export-oriented, focusing on value-added products such as garments and home textiles, to customers across regions including Europe, Asia, the United States, Africa and Australia. In the local market, KL operates under the retail brand ‘So Kamal’, which currently operates and sells its products online and through 20 franchise locations.

The assigned ratings reflect Company’s strong revenue growth, vertically integrated operations, and established export base, which together support operational efficiency and stable cash generation. The Company continues to benefit from diversification across home textiles and garments, with a gradual shift toward higher value-added products expected to enhance margins over time. Profitability has moderated due to higher fixed cost absorption from recent capacity expansions; however, revenue momentum and early signs of margin stabilization in FY26 provide comfort. Financial risk remains manageable. Debt coverage indicators are comfortable. Although leverage has increased due to CAPEX-led borrowings, it is expected to stabilize as earnings strengthen and long-term financing is fully deployed.

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









Applicable Rating Criteria:

VIS 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 May 18, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.