Press Release
VIS Reaffirms Entity Ratings of Kamal Textile Mills (Pvt) Limited
Karachi, September 18, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Kamal Textile Mills (Pvt) Limited at ‘A-/A2’ (Single 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 remain ‘Stable’. Previous rating action was announced on July 21, 2025.
Kamal Textile Mills (Pvt.) Limited is a vertically integrated textile manufacturer and exporter based in Faisalabad. The Company manufactures and exports home textile made-ups, garments and processed fabrics to international markets. Its integrated production facility encompasses knitting, dyeing, printing, processing, stitching and finishing. KTML’s product portfolio includes bed sheets, duvet covers, pillowcases, kitchen linen, casual and loungewear, and dyed and printed fabrics in cotton and poly-cotton blends. Its manufacturing operations are supported by a solar power facility, which supplements its energy requirements.
The assigned ratings reflect the Company’s established presence in the textile sector, supported by its diversified product portfolio across made-ups and garments. The ratings reflect the Company’s predominantly export-oriented revenue base, improving customer concentration, and stable profitability; however, the concentration of exports in Europe continues to expose the Company to demand conditions in the region as well as any changes to Pakistan’s status under the GSP+ regime. Profitability remained stable during FY25, with net margin improving modestly, supported by lower finance costs and other income. Performance during 9MFY26 remained adequate, with gross margin improving on the back of lower raw material costs and operating efficiencies, while net margin also strengthened primarily due to lower finance costs.
The ratings also incorporate the Company’s manageable financial risk profile, with gearing remaining somewhat elevated, reflecting the funding requirements associated with working capital needs. Capitalization strengthened through profit retention and related-party support, while gearing and leverage improved during 9MFY26. Liquidity remained adequate, with the relatively extended cash conversion cycle reflecting ongoing working capital requirements. Maintaining stable margins, prudent working capital management, adequate liquidity and coverage indicators, and realizing the expected benefits from solar investments will remain important from a ratings perspective.
For further information on this ratings announcement, please contact on 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