Press Release
VIS Assigns Initial Entity Rating to ITANZ Technologies Limited
Karachi, September 22, 2026: VIS Credit Rating Company Limited (VIS) has assigned an initial entity rating of ‘BB+/B’ (Double B plus/B) to ITANZ Technologies Limited. Medium to long term rating of ‘BB+’ indicates obligations deemed likely to be met. Protection factors are capable of weakening if changes occur in the economy. Overall quality may move up or down frequently within this category. Short term rating of 'B' indicates speculation exists in likelihood of timely repayment of short-term debt obligations with insufficient liquidity factors. Outlook on the assigned ratings is Stable.
ITANZ Technologies Limited is a Pakistan-based public limited company listed on the Pakistan Stock Exchange. During FY25, pursuant to a Scheme of Arrangement approved by the Lahore High Court, ITANZ Technology (Private) Limited was merged into Zahur Cotton Mills Limited with effect from October 1, 2023. Following the merger, Zahur Cotton Mills Limited changed its name to ITANZ Technologies Limited and transitioned its business to information technology and IT-enabled services. During FY26, the Company acquired a 51% controlling equity stake in ITANZ Infinity Pty Ltd, an Australia-based company engaged in software development, digital transformation, consultancy, and related technology services.
ITANZ operates through proprietary software platforms, including the Intelligent City Platform (ICP), UBR and CAMS, supported by implementation IP and Resource-as-a-Service capabilities. The Group also provides enterprise technology implementation, data integration, cloud and automation services across multiple technology vendors. Its customer base spans government, utilities, financial services, healthcare, manufacturing and other sectors.
The initial rating assessment of the Company reflects its growing presence in Pakistan’s IT and IT-enabled services sector, supported by a diversified product portfolio spanning IT services, software development and implementation, software licensing, and BPO. The assessment also takes into consideration the concentration of revenue within the Group: ITANZ Infinity has averaged 87% of total revenue over the last three years, with cash payments against this exposure of PKR 117 million over the period — around 10% of the value of services received — and the balance settled through accounting offsets related to the FY26 share-purchase transaction. Diversifying this revenue base across customers and geographies remains a key focus for the Company going forward.
FY26 profitability strengthened significantly, although the improvement was mainly supported by acquisition-related accounting gains, including notional interest income and gain on bargain purchase. Adjusted profitability remained broadly in line with FY25 levels. The acquisition has also increased leverage and introduced additional medium-term cash flow requirements through deferred consideration payable over five years. ITANZ’s financial risk profile benefits from limited reliance on banking debt; however, liquidity and cash-flow coverage remain constrained, particularly after considering acquisition-related obligations and adjustments to FFO.
Going forward, the establishment of sustainable cash flows from ITANZ Infinity, alongside greater customer and geographical diversification, will remain key rating considerations. The implementation of recently secured international projects will also remain important.
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