Press Release
VIS Reaffirms Entity Ratings of Bismillah Textiles (Private) Limited
Karachi, October 12, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Bismillah Textiles (Private) Limited at ‘A-/A2’ (Single A Minus/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’ denotes 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 October 17, 2025.
Bismillah Textiles (Private) Limited (‘BTL’ or ‘the Company’) was incorporated in 1989 as a public limited company and later in November 2023 was converted into a private limited company. Its principal business activity comprises the manufacturing and export of value-added fabrics and textile made-ups including duvet covers and sets, bed sheets, fitted sheets, pillow cases, quilts, comforters, blankets, shower curtains, table linen and baby bedding products. The Company’s production facilities and registered office are located in Faisalabad.
The reaffirmation of ratings reflects the Company’s sustained growth in exports, modest gearing levels, adequate cash flow coverage and improvement in working capital indicators. Despite elevated business risk faced by textile exporters due to regional geopolitical issues and other challenges, net sales continued to increase throughout FY25-FY26, supported by higher orders from longstanding international customers in the EU, US and Australian markets. The ratings draw support from the Company’s established presence in the home textile segment, integrated manufacturing operations and recurring business from reputed international retailers. The assigned ratings incorporate improvement in net profitability, capitalization and debt-servicing metrics. While gross margins remained constrained by pricing pressure and elevated input costs, lower finance costs supported stronger net profitability and internal cash generation during FY26. Sustained growth in retained earnings has strengthened the equity base, while moderate gearing and timely redemption of long-term borrowings supported the overall capitalization profile.
Operational capabilities are expected to be supported by the ongoing BMR initiative, expansion into new export markets, and cost efficiencies arising from energy optimization and procurement improvements. However, the ratings remain sensitive to intense pricing pressures, volatility in raw material and energy costs, significant working capital requirements, and the continued reliance on short-term borrowings. Going forward, Company's ability to sustain improved business volumes and profitability, successfully diversify its customer base, and maintain leverage and debt coverage metrics within manageable levels will be 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/Methodologies-2026/Corporate-Rating-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf