Press Release
VIS Reaffirmed Entity Ratings of Izhar Construction Private Limited
Karachi, September 22, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Izhar Construction (Private) Limited to '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 the assigned ratings remains Stable. Previous rating action was announced on June 02, 2025.
Izhar Construction (Private) Limited (“ICPL” or “the Company”) is an established construction and engineering company operating in Pakistan. Incorporated in 1960, the Company is headquartered in Lahore and is engaged in civil construction, engineering services, and ready-mix concrete operations. ICPL operates a ready-mix concrete manufacturing facility on Multan Road, Lahore, for sale and supporting its construction activities. The Company has executed projects across commercial, healthcare, education, industrial, and infrastructure segments. Its project portfolio includes DHA Dolmen Mall Lahore, Indus Hospital, LUMS, Mughal Energy Limited, Nova Care Hospital (Pvt.) Limited, and Al-Fatah E-Mall. ICPL also owns agricultural farms in Kalar Kahar and maintains an equity investment in Green Industrial Solutions (Private) Limited, which provides turnkey engineering solutions for power plants, grid stations, and process and control systems.
The assigned rating reflects the Company’s established presence in the construction industry, supported by its affiliation with the diversified Izhar Group. The Company maintains a diversified portfolio of private-sector projects, including commercial, corporate, and industrial developments. Business risk remains moderate to high, given the cyclical nature of the construction industry, exposure to cement and steel price volatility, inflationary pressures, and strong correlation with overall economic activity. However, ICPL’s established market presence and franchise value, along with its ongoing project portfolio, provide support to revenue visibility.
Going forward, maintaining a healthy flow of new contracts will remain important to sustain revenue generation and profitability, particularly given the Company’s reliance on a major ongoing project of around PKR 12 billion. On the financial front, profitability remained stable, with margins improving during 9MFY26. The Company maintains a debt-free capital structure with no external borrowings, resulting in nil gearing and strong capitalization. The Izhar Group also maintains a policy of inter-company borrowing/investments rather than relying on bank borrowings, as the Group remains cash positive on a net basis. Liquidity remains sound, supported by a strong cash position, current ratio above 3.0x, negative net operating cycle, and absence of debt-servicing obligations. The ratings will remain sensitive to the timely execution of ongoing projects, sustainability of profitability and liquidity, continued flow of new contracts, and maintenance of the Company’s conservative capital structure.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf