Press Release

VIS Reaffirms Entity Ratings of Etihad Sugar Mills Limited

Karachi, April 13, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Etihad Sugar Mills Limited (‘ESML’ or ‘the Company’) at ‘A/A2’ (Single A/A Two). 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. The 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 rating remains ‘Stable’. Previous rating action was announced on April 9, 2025.

ESML is a public unlisted company, incorporated in 2006. The Company is principally engaged in the manufacturing and sale of sugar and related by-products, including molasses and bagasse. ESML operates a sugar manufacturing unit located in Karamabad, District Rahim Yar Khan, Punjab, with a licensed crushing capacity of 25,000 TCD. The head office of the Company is situated in Lahore.

The ratings reflect inherent risk related to sugar sector, primarily due to periodic regulatory intervention in the form of price control. During FY25, topline and margins improved, supported by favorable pricing, higher volumes, increase in export sales, and better by-product contribution. Additionally, financial risk profile improved during FY25, driven by a significant reduction in short-term borrowings; this was also supported by improved cash flow generation and inventory drawdown, resulting in stronger coverage indicators and liquidity position. Capitalization levels also strengthened. Going forward, maintaining strong cash flows and coverages, stable margins, and disciplined financial management will remain important for the ratings.

For further information on this ratings 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

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 April 13, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.