Press Release
VIS Upgrades the Entity Rating of Zoom Marketing Oils (Private) Limited.
Karachi, July 24, 2026: VIS Credit Rating Company Limited (VIS) upgrades the entity rating of Zoom Marketing Oils (Private) Limited (‘ZMOPL’ or ‘the Company’) from BBB-/A3 (Triple B minus / Single A3) to BBB+/A2 (Triple B Plus / Single A2). Medium to long term rating of ‘BBB+' indicates adequate credit quality; Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur 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 rating is ‘Stable’. Previous rating action was announced on April 17, 2025.
Incorporated in 2015, the Company is principally engaged in the procurement, storage, and marketing of petroleum products. The Company’s registered office is situated in Lahore, Punjab, while it operates an expanding retail network across Punjab and Sindh, supported by a growing storage infrastructure. Zoom operates a network of 234 fuel stations and maintains a total storage capacity of 37,371 tons.
Pakistan's OMC sector remained challenging in FY26, with total POL consumption declining 1.3% YoY to 16.19 million metric tons, primarily due to lower HSD and furnace oil demand, despite marginal growth in motor spirit consumption. While the phased increase in regulated OMC margins is expected to support profitability, operators continue to face pressure from thin margins, import dependence, exchange rate volatility, and global oil price fluctuations.
The ratings upgrade of Zoom Marketing Oils (Private) Limited reflects the Company's strengthening business and financial risk profile. The upgrade is underpinned by continued expansion of the retail network, enhancement of storage infrastructure through the commissioning of a new storage terminal in Sindh, and a gradual increase in market share and volumetric sales, supporting the Company's growing operational scale. The recent grant of a permanent OGRA license, valid until July 1, 2046, further strengthens the Company's business profile by providing long-term regulatory certainty for petroleum marketing operations in Punjab and Sindh. The ratings also incorporate the Company's improved profitability during the ongoing fiscal year. Furthermore, the ratings are supported by a strengthening capitalization profile, characterized by an expanding equity base through internal profit retention, reduced reliance on debt, and improved debt servicing capacity. The liquidity profile remains adequate, supported by a negative cash conversion cycle that facilitates efficient working capital management and internal financing of inventory requirements. Going forward, the successful execution of the Company's growth strategy, continued growth in volumetric sales while sustaining the improved profitability profile, and maintenance of capitalization profile at manageable levels along with satisfactory debt coverage metrics will remain key rating sensitivities.
For further information on this rating 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