Rating History
Dissemination Date Long-Term Rating Short-Term Rating Outlook Action Rating Watch
16-Oct-26 A A1 Stable Maintain -
17-Oct-25 A A1 Stable Maintain -
19-Oct-24 A A1 Stable Maintain -
20-Oct-23 A A1 Stable Maintain -
20-Oct-22 A A1 Stable Maintain -
About the Entity

CCL Pharmaceuticals (Pvt.) Limited was incorporated on April 28, 1985, under the Companies Ordinance, 1984 (Now Companies Act, 2017) as a private limited concern. The Company is engaged in the manufacturing, import, marketing, and sale of pharmaceutical products. It is operating in over 20 countries across South Asia, Southeast Asia, the Middle East, Africa, and Central Asia, CCL Pharmaceuticals is committed to enabling healthier, happier life. With state-of-the-art manufacturing facilities, including a two PIC/S-certified facilities, CCL Pharmaceuticals ensures the highest standards of quality and excellence in its diverse portfolio of pharmaceutical products. Focused on addressing critical health challenges, CCL Pharmaceuticals specializes in areas such as Diabetes, Cardiovascular, Urology, Neuro-Psychiatry, Oncology, Anti-infectives and Consumer Healthcare. Guided by a mission to create value through innovation, collaboration, and integrity, CCL Pharmaceuticals continues to make a lasting impact on global health by empowering communities and fostering sustainable growth.

Rating Rationale

CCL Pharmaceuticals (Private) Limited ("CCL" or "the Company") is a leading pharmaceutical manufacturer in Pakistan, engaged in the manufacturing and marketing of branded generic medicines. With a 6-decade legacy, the Company has cemented its reputation both within Pakistan and across international markets, operating in over 20 countries. A key driver of the Company’s success is its robust portfolio spanning key therapeutic areas including Diabetes, Cardiovascular, Neuropsychiatry, Urology, Specialty, Acute care & Consumer healthcare. The assigned ratings draw comfort from the Company's established operating track record spanning several decades, its commitment to patient-centricity, diversified product portfolio, and its presence across both domestic and export markets. To support its growing portfolio, CCL operates state-of-the-art, GMP-compliant manufacturing facilities in Pakistan and Vietnam, including two PIC/S certified (Pharmaceutical Inspection Co-operation Scheme) facilities. Aligned with its mission to enable Healthy, Happy Life, CCL is dedicated to creating shared value for its stakeholders and the communities it serves through its environmental and social impact initiatives. The pharmaceutical industry in Pakistan continued its growth trajectory during FY26, supported by sustained healthcare demand, gradual normalization of economic conditions, and periodic price adjustments by the regulator. Export demand also remained favorable as pharmaceutical manufacturers sought greater penetration in regional and emerging markets. CCL is governed by a strong corporate governance structure, reflected in its board and management-level committees. During FY26, CCL reported revenue growth of ~18.9%, driven by increased sales volumes, introduction of new launches, expansion of export business and sustained demand across the Company's product portfolio. The growth in revenue translated into improved profitability at all levels. The Company’s financial risk profile remains stable, supported by adequate coverage ratios, consistent cash flows, and an efficiently managed working capital cycle. While the capital structure remains leveraged, it reflects a balanced mix of long-term and short-term borrowings. Going forward, the Company aims to expand its domestic and export presence through new product launches, enhanced capacity, and broader international market penetration. Management remains focused on sustaining growth, improving profitability, and maintaining financial discipline.

Key Rating Drivers

The ratings remain contingent upon CCL's ability to sustain revenue growth, preserve profitability margins, and strengthen its competitive position across local and export markets. Maintaining comfortable cash flow generation, adequate liquidity, and a prudent leverage profile will remain important considerations. Continued expansion of export revenues, efficient working capital management, and successful execution of strategic growth initiatives would be viewed positively.

Profile
Legal Structure

CCL Pharmaceuticals (Pvt.) Limited (Hereinafter referred to as ‘the Company’ or ‘CCL Pharma’) is a Private Limited Entity.


Background

The Company was founded six decades ago by Dr. Dilawar Hussain, the grandfather of the current sponsors. It was officially incorporated on April 28, 1985, under the Companies Ordinance, 1984. After Dr. Hussain’s leadership, the business was successfully taken over by his three sons: Mr. Sajjad Sheikh, Mr. Zubair Sheikh, and Mr. Javaid Sheikh. Today, the Company is managed by the third generation of the family, continuing a long-standing legacy of family-led entrepreneurship and growth.


Operations

The Company is principally engaged in the manufacture, import, marketing, and sale of a range of medicines and allied products. Its manufacturing facilities have top-of-the-line machinery, capable of producing oral solids (tablets, capsules), oral liquids (syrups), dry powder suspensions, liquid injections, & dry powder injections. The company has a wide range of product across its Cardiometabolic, Specialty, Acute Care, and Consumer Healthcare portfolios.


Ownership
Ownership Structure

The sponsoring family holds 100% of the Company’s shareholding through CCL Holding Pvt. Ltd.


Stability

There have been no recent changes in the shareholding structure of the Company. The entire ownership remains consolidated under the control of the sponsoring family, ensuring stability in governance and long-term strategic direction. Given the family’s long-standing involvement in the business and their commitment to preserving its legacy, the shareholding is expected to remain within the sponsoring family.


Business Acumen

Mr. Kashif Sajjad, the Chairman of the Company, brings a wealth of experience and a strong professional background in the pharmaceutical industry. With over ~30 years of industry expertise, he is a seasoned leader whose strategic vision and hands-on approach have been instrumental in the Company's growth and success. Under his leadership, the Company has achieved several key milestones, securing its position as one of the leading players in the sector. In addition to Mr. Sajjad, the other sponsors also contribute significantly to the Company’s direction. The other sponsors also possess deep industry knowledge and extensive experience, allowing them to effectively steer the company and drive its strategic activities.


Financial Strength

The financial position of the Company is considered strong, supported by a stable capital base and a consistent track record of operational performance. This financial resilience is further strengthened by the backing of the sponsoring family, who have established a diversified presence across various segments of the pharmaceutical and healthcare industries. Collectively, these entities contribute to group-level synergies, operational efficiencies, and overall financial stability, further reinforcing the Company’s strong market position.


Governance
Board Structure

The overall control of the Company rests with a seven-member Board of Directors and Advisors. This includes three Non-Executive Directors, one Executive Director (Mr. Kashif Sajjad Sheikh) who serves as the Chairman, and three independent advisors.


Members’ Profile

All members of the Board bring extensive experience in the pharmaceutical industry. Mr. Kashif Sajjad, who serves as the Board’s Chairman, has over three decades of expertise in pharmaceutical operations and international business development. He is also the former Chairman of the Pakistan Pharmaceutical Manufacturers' Association. The other board members are seasoned professionals with diverse backgrounds and experience in managing business affairs across various sectors, contributing valuable insights and expertise to the Company’s governance and strategic direction.


Board Effectiveness

The Board has established three key committees to oversee critical areas of governance: (i) the Audit Committee,(ii) the HR & Remuneration Committee, and (iii) the Finance Committee. Throughout the year, multiple Board meetings were convened to address strategic and operational matters. Attendance by Board members remained consistently strong, and detailed minutes of all meetings were properly documented to ensure transparency and accountability.


Financial Transparency

M/s Rahman Sarfaraz Rahim Iqbal Rafiq & Co., Chartered Accountants, classified in category ‘A’ by SBP with satisfactory QCR rating, are the external auditors of the Company. The firm has expressed an unmodified opinion on the financial statements of CCL Pharmaceuticals for year ended June 30, 2026.


Management
Organizational Structure

The Company operates with a well-defined hierarchical organizational structure, ensuring clear lines of authority and communication. At the top of this hierarchy is the Chief Executive Officer (CEO), to whom all Heads of Departments (HODs) directly report. This streamlined reporting system facilitates efficient decision-making and accountability across the organization. The organizational framework is segmented into seven distinct functional departments, each specializing in key operational areas essential to the Company’s success. These departments are led by highly qualified and experienced professionals, who bring expertise and leadership to their respective teams. This structure not only promotes specialization and focus within each department but also fosters collaboration across different functions, enabling the Company to operate cohesively towards its strategic goals.


Management Team

Mr. Ali Masood serves as the Chief Executive Officer (CEO) of the Company. With over ~20 years of extensive global experience in the pharmaceutical industry, he has held key leadership roles in both multinational corporations and prominent national companies. His deep understanding of the sector, combined with his strategic vision and operational expertise, has been instrumental in driving the Company’s growth and success. Supporting Mr. Ali Masood, is a dedicated team of seasoned professionals who assist in managing the Company’s day-to-day operations and long-term initiatives. This collaborative leadership approach ensures that the Company remains agile, innovative, and well-positioned to meet the evolving demands of the pharmaceutical market.


Effectiveness

The Company has established three dedicated management committees, each focusing on key areas of operationsand strategic direction. (i) The Corporate Executive Committee is responsible for overseeing overall corporate governance, driving strategic planning, and making high-level decisions that align with the Company’s long-term goals. (ii) The Risk Management Committee is tasked with identifying, evaluating, and mitigating potential risks that could impact the business. (iii) The Environment, Social & Sustainability Committee upholds the Company’s commitment to environmental stewardship, social responsibility, and sustainable business practices. In addition to these, the Board of Directors has constituted three other committees—namely, the Audit Committee, the Finance Committee, and the Human Resource & Remuneration Committee. These committees ensure comprehensive oversight, foster collaborative leadership, and contribute to the Company’s ongoing growth and long-term success.


MIS

Company has implemented an Oracle based ERP system (different modules). . The system is designed to streamline and unify all critical areas of the business, enabling seamless coordination between departments. By consolidating data from sales, purchases, inventory, and other essential functions, the ERP system provides comprehensive and accurate insights. Moreover, the system generates detailed reports on a daily, weekly, monthly, and yearly basis, allowing management to monitor performance, make informed decisions, and respond swiftly to changing business needs. This integration enhances operational efficiency, improves data accuracy, and supports strategic planning across the organization.


Control Environment

Company maintains robust and effective quality control systems to ensure the highest standards in its manufacturing processes. The Company holds Good Manufacturing Practice (GMP) certification, which verifies that its facilities comply with stringent regulatory requirements across approximately ~20+ countries. This certification underscores the Company’s commitment to producing safe, high-quality pharmaceutical products. Additionally, both of the Company's manufacturing facilities based in Pakistan are compliant with the Pharmaceutical Inspection Co-operation Scheme (PIC/s) standards. This compliance is expected to significantly enhance the Company’s export capabilities and expand its international market presence in the near future. To ensure continuous improvement and effective governance, management committee meetings are held regularly at both the departmental and executive levels. These meetings provide a platform for regular discussion of critical Company matters, enabling timely decision-making and alignment across all areas of the organization.


Business Risk
Industry Dynamics

Pakistan's pharmaceutical industry remains a sizeable and growing sector, comprising more than 700 manufacturing facilities, predominantly local players, while multinational companies maintain a presence in specialized and branded segments. The industry caters to approximately 70%-90% of domestic pharmaceutical demand through local manufacturing; however, it continues to rely heavily on imported raw materials and Active Pharmaceutical Ingredients (APIs), with nearly 90%-95% of API requirements sourced from international markets, primarily China and other Asian countries. This dependence exposes the sector to foreign exchange volatility and supply chain disruptions. The industry remains highly concentrated, with leading pharmaceutical companies accounting for a significant proportion of market sales, benefiting from established brands, extensive distribution networks, and regulatory compliance capabilities. Regulatory reforms, digitalization initiatives by DRAP, and a relatively stable pricing environment have supported sector growth in recent years. Furthermore, increasing healthcare awareness, population growth, rising prevalence of chronic diseases, and expanding access to healthcare services continue to drive domestic demand. Pakistan's pharmaceutical sector also presents meaningful long-term growth opportunities, supported by low per capita healthcare expenditure and an underserved rural population. In addition, the government's focus on export promotion and API localization is expected to enhance sector competitiveness. Pharmaceutical exports have demonstrated strong momentum, reaching a record level in FY26, reflecting improving penetration into regional and international markets. Nevertheless, the industry's growth trajectory remains contingent upon reducing import dependence, strengthening local API manufacturing capabilities, and maintaining compliance with evolving quality and regulatory standards.


Relative Position

Company's impressive rise to the 12th position (IQVIA ranking) in the national pharmaceutical rankings is a clear testament to its strategic focus, therapeutic leadership, and relentless pursuit of innovation. In a highly competitive industry dominated by long-established players, Company has not only carved out a distinct identity but has emerged as one of the fastest-growing forces in the top 20CCL has firmly established itself as a dominant player in Pakistan’s pharmaceutical industry, particularly in the areas of Diabetes management, heart health, neuropsychiatry, oncology and  expectorants. The Company’s strong portfolio of branded products includes several market leaders, reflecting its commitment to delivering high-quality and impactful healthcare solutions. Key products in the Company's portfolio include: 1) Sita Franchise – A leading anti-diabetic treatment, 2) Paraxyl Franchise – A top-selling antidepressant, 3) Mirabet – A trusted solution for incontinence management, 4) Maxflow D – A specialized therapy for benign prostatic hyperplasia (BPH), 5) KALV – A natural-source calcium supplement. In addition to these flagship brands, CCL has ten other products that are ranked among the top three in their respective therapeutic segments.


Revenues

During FY26, the Company delivered a strong financial performance, with net sales increased by ~19% on YoY basis— a reflection of both volume growth and continued market demand for the Company’s key therapeutic offerings. The Company's growth was primarily driven by its top-performing brands. Leading the portfolio was Sita, Company's flagship anti-diabetic franchise, followed by Pulmonol, a trusted name in respiratory care. Maxflow, a treatment for benign prostatic hyperplasia (BPH), Paraxyl, a high-performing antidepressant, and Jardy, another key product in diabetes management, also made significant contributions to the overall revenue. These five products collectively underscore the Company's strength in chronic care and specialty segments, and continue to be major growth drivers for the Company.


Margins

Company demonstrated strong financial discipline and operational efficiency in FY26, resulting in a notable improvement across all key profitability metrics. This improvement was primarily driven by increased sales volumes, enhanced product mix, and strategic price adjustments across key brands. The Company maintained its operating and net margins — reflecting better cost management and operational leverage. 


Sustainability

Aligned with its mission to enable a healthy, happy life, CCL is committed to creating sustainable value for its stakeholders and contributing to the well-being of the communities it serves. Sustainability is integral to the Company's long-term strategy, guiding its efforts to operate responsibly, minimize environmental impact, and drive meaningful social progress.   In Pakistan, CCL advances environmental stewardship through responsible manufacturing practices, resource efficiency, energy conservation, and waste management. The Company remains focused on strengthening its environmental performance while maintaining high standards of quality, safety, and regulatory compliance.   Beyond its operations, CCL actively invests in social responsibility initiatives that promote community well-being, health awareness, and access to healthcare, particularly for underserved populations. By integrating environmental and social priorities into its business practices, CCL aims to strengthen operational resilience, contribute to Pakistan's healthcare ecosystem, and support a healthier, more inclusive, and sustainable future.


Financial Risk
Working capital

In FY26, the Company reported an improvement in its gross working capital cycle, with gross working capital days reducing to ~60 days, down from around ~69 days in FY25. This reduction was primarily driven by a decrease in the average collection period, indicating more efficient receivables management and quicker realization of dues from customers. Similarly, net working capital days declined to ~ 47 days in FY26, compared to ~55 days in FY25. This improvement was largely due to a stable level of trade payables, which helped offset working capital requirements, contributing to a more efficient cash conversion cycle overall.


Coverages

The Company’s free cash flow from operations increased during the review period, reflecting higher cash generation from operating activities. The interest coverage ratio also improved, indicating a greater capacity to meet interest obligations through operational earnings. Overall, these developments suggest an improvement in the Company’s cash flow generation and debt servicing capacity.


Capitalization

The Company’s gearing ratio improved to ~53% in FY26 from ~63% in the previous year, indicating a lower proportion of debt in the overall capital structure. Of the total debt portfolio, approximately 41% comprised short-term borrowings, reflecting the Company’s funding requirements for working capital and operational activities. Meanwhile, shareholders’ equity increased during FY26, primarily supported by the accumulation of retained earnings, contributing to the overall strengthening of the equity base.


 
 

Oct-26

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Oct-26

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