Press Release
VIS Reaffirms Entity Ratings to Gohar Textile Mills (Pvt.) Limited
Karachi, March 19, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Gohar Textile Mills (Pvt.) Limited (‘GTML’ or ‘the Company’) at ‘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. Short term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on April 15, 2025.
Gohar Textile Mills (Pvt.) Limited was incorporated in 1995 and operates as an export-oriented textile manufacturer. The Company’s product portfolio comprises home textiles including bed linen and related made-ups such as bed sheets, duvet covers, comforters, quilts, curtains and pillow products. The Company maintains a vertically integrated manufacturing structure across key stages of the textile value chain, including weaving, processing and finished made-ups, enabling quality control and operational efficiency. The registered office is located in Faisalabad. Production facilities, including spinning, weaving, processing, stitching and quilting units, are primarily situated in Tehsil Jhumra, District Faisalabad. Weaving operations are mainly carried out in Faisalabad, while the original weaving facility in Tehsil Gojra, District Toba Tek Singh, continues to operate as part of the Company’s legacy infrastructure.
The assigned ratings reflect Gohar Textile Mills (Pvt.) Limited’s strategy to maintain a conservative capital structure amid increasing pressure on margins within the textile sector. The Company aims to enhance sales volumes and diversify into new markets and product segments to support its earnings profile. In this regard, it is undertaking a phased expansion plan involving the installation of additional spinning capacity followed by the establishment of a terry towel production plant. Timely execution of these initiatives will remain important to sustain the Company’s debt servicing capacity.
Business risk has increased in recent years due to rising energy costs and elevated freight charges associated with geopolitical disruptions affecting export-oriented units. While customer concentration remains notable, long-standing relationships and an established market presence provide some mitigation to this risk.
For further information on this rating 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