Press Release
VIS Assigns Initial Entity Rating to Rajby Industries (Pvt) Limited
Karachi, September 29 2026: VIS Credit Rating Company Limited (VIS) has assigned an initial entity rating of ‘A-/A2’ (Single A minus/ A two) to Rajby Industries (Pvt) Limited (‘RIPL’ or ‘the Company’). 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 assigned ratings is ‘Stable’.
RIPL was incorporated on 2 December 2024 as part of the conversion of Rajby Industries (RI), a partnership established in 1990, into a private limited company. RIPL is engaged in export-oriented manufacturing of ready-to-wear (RTW) apparel, primarily denim garments including jeans, trousers, shorts, jeggings, pants, jackets, and shirts. The transfer of RI’s business and operations to RIPL was completed on January 1, 2026.
The assigned ratings reflect the established market presence of RIPL in the denim segment, supported by longstanding industry experience and an established customer base across export markets. The Company reported strong topline growth during FY25, however, profitability margins came under pressure amid inflationary cost pressures and the absence of exchange gains. Performance remained broadly stable during FY26. The ratings also factor in the Company’s relatively modest equity base and high leverage; liquidity remains adequate. Capitalization and liquidity are supported by significant subordinated loans from sponsors, with debt coverages remaining satisfactory.
Going forward, the Company is undertaking backward integration into denim manufacturing, followed by sizeable investments in spinning and solar power capacity over next 5 years. These initiatives are expected to enhance operational integration, improve cost efficiencies, and support profitability over the medium term. However, the planned capex and its funding plan will remain key rating considerations alongside continued sponsor support, successful execution of the expansion program, and a sustained recovery in profitability.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
VIS Rating Criteria: 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