Press Release
VIS Upgrades Medium to Long-term Rating of The Imperial Electric Company (Private) Limited
Karachi, February 18, 2026: VIS Credit Rating Company Limited (VIS) has upgraded the medium to long-term rating of The Imperial Electric Company (Private) Limited from ‘A-’ (Single A minus) to ‘A’ (Single A) while maintaining the short-term rating at ‘A2’ (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 a 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 January 27, 2025.
The Imperial Electric Company (Private) Limited (‘IEC’ or ‘the Company’) specializes in the manufacturing and installation of diesel generators, airfield lighting systems, low-voltage components, and related products for commercial and institutional clients. The upgrade of the medium to long-term rating reflects IEC’s low business risk profile, underpinned by its position as a specialized company with an established presence in the electrical equipment market, long-standing relationships with leading global suppliers, and an increasing contribution from aviation-related services. Collectively, these factors enhance the Company’s competitive edge in executing high-end engineering projects. Further comfort is derived from strategic linkages with associated companies and an experienced management team.
In FY25, net sales moderated, primarily due to lower revenue from diesel generator sales where ongoing restructuring in telcos delayed ordering process; however, gross margins remained largely stable, reflecting effective cost pass-through and product mix shift. Net margins compressed marginally, owing to higher operating expenses and elevated finance costs. The resulting weakening in cash flows led to increased reliance on borrowings, weighing on capitalization and liquidity metrics. Nevertheless, a modest recovery in financial parameters was observed during 1HFY26.
IEC continues to benefit from a strong project execution profile, supported by a healthy backlog of ongoing orders and a sizable pipeline of prospective turnkey projects. Moreover, the manufacturing revenue base is expected to recover, underpinned by a reported solid order book for diesel generator deliveries. Going forward, timely execution of the existing order book, realization of projected topline growth, and improvement in profitability and debt coverage, alongside a gradual strengthening of the capital structure, will remain important determinants of the Company’s assigned 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