Press Release
VIS Reaffirms Entity Ratings to Shahkam Industries (Private) Limited
Karachi, June 16, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed entity ratings of Shahkam Industries (Private) Limited (‘Shahkam’ 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’ signifies good likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on April 18, 2025.
Shahkam, incorporated in 1992 and headquartered in Lahore, is engaged in the manufacturing and export of knitwear garments. The Company specializes in the production of value-added apparel, including T-shirts, polo shirts, and hoodies, primarily for international clients. It operates as a vertically integrated unit with in-house knitting, dyeing, stitching, and finishing facilities. The Company’s head office and factory are located on Multan Road, Lahore. Shahkam primarily supplies its products to export markets in accordance with international
buyer specifications.
The assigned ratings reflect the Company’s resilience amid challenging textile sector dynamics, characterized by elevated production costs, global trade disruptions, and intense regional competition. Shahkam has maintained customer retention through production upscaling and effective marketing initiatives. Additionally, the sponsors have established Onelife Apparel, a fast-growing retail clothing brand, which strengthens the overall business profile.
The Company’s operating performance improved on the back of operational efficiencies. Going forward, the Company is expected to further enhance its capacity utilization, which may support revenue growth and margins. Moreover, its association as a preferred vendor for a major textile conglomerate continues to support its business risk profile. Net sales and gross profitability witnessed improvement during FY25, while operational cash flows strengthened during 6MFY26. Going forward, the Company is expected to further improve its capacity utilization levels through an AI based hanger system, which may support revenue growth and operational efficiency. The Company’s capital structure remained leveraged due to elevated working capital requirements and inventory build-up, resulting in higher short-term borrowings during FY25. Consequently, gearing, leverage, and liquidity indicators remained under pressure during the review period.
For further information on this ratings announcement, please contact at 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