Press Release
VIS Reaffirms Entity Rating of Saya Weaving Mills (Pvt.) Limited
Karachi, July 06, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Saya Weaving Mills (Pvt.) Limited (‘SWML or the ‘Company’) to 'A-/A2' (‘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 ratings remained ‘Stable’. Previous Rating action was announced on June 12, 2025.
Saya Weaving Mills (Pvt.) Limited (“SWML” or “the Company”) was incorporated in 1987 and is a privately held textile manufacturing company engaged in the production and sale of greige fabrics, finished fabrics, home textiles, and apparel. The Company is family-owned, with equity distributed among family members. SWML operates two manufacturing units located in the Sindh Industrial Trading Estate (SITE), Karachi while a third one is under construction at Nooriabad. These facilities comprise weaving and stitching operations, enabling the Company to undertake multiple stages of textile manufacturing in-house and supporting an integrated manufacturing setup. The Company serves both local and export markets and offers a diversified product portfolio catering to various end-use segments within the textile value chain.
The assigned ratings reflect Saya Weaving Mills (Pvt.) Limited’s established track record in textile manufacturing, supported by integrated weaving and stitching operations and a diversified product range focused on fabric and towel segments. The ratings draw comfort from the Company’s balanced revenue mix, improved customer concentration, and satisfactory operating performance; however, export sales remain largely concentrated in Europe, exposing the company to any changes in the GSP+ regime.
Profitability improved in FY25, supported by better gross margins. Performance during 6MFY26 remained adequate, with gross margins improving further owing to lower imported raw material costs and operating efficiencies, while net profitability remained at moderate levels. Investments in solar power and the in-house processing facility at Nooriabad are expected to support cost efficiencies over the medium term.
The ratings also incorporate the Company’s manageable financial risk profile, reflected by moderate borrowings and improved adjusted gearing. Capitalization remained adequate, supported by profit retention and related-party funding, while liquidity and debt servicing capacity remained sound on the back of healthy internal cash generation. Going forward, maintaining stable margins, prudent working capital management, adequate liquidity and coverage indicators, and realizing the expected benefits from expansion and renewable energy initiatives will remain important from a ratings perspective.
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