PACRA Assigns Initial Entity Ratings to Shams Power Limited

Shams Power (Private) Limited commenced its solar renewable energy operations in 2015 as a joint venture between Pakistan Industrial Trading Corporation (PITCO) and Orient Operating Company (Private) Limited. The assigned rating reflects the benefits of this partnership, combining PITCO’s technical advisory and operational expertise with the Orient Group’s deep-rooted presence in Pakistan’s power sector, which supports operational stability and business continuity. The Company operates through a combination of business lines, with a majority of its portfolio structured under the sale of equipment (BOOT) model, complemented by the sale of energy under long-term contractual arrangements. This business mix supports revenue stability through defined project scopes, agreed tariffs, and predictable cash flows. As of 2025, Shams Power has installed approximately 22 MW of solar capacity across 26 fully operational sites, reflecting steady execution capability and an expanding operating base. Project implementation and operational stability are supported by established EPC contractors, including Pak Indenting Trading Company Ltd and Orient Energy Systems (Pvt.) Ltd. The Company’s client portfolio comprises reputable commercial and industrial entities such as Metro Cash & Carry Pakistan, Packages Limited, Hyundai Nishat, Dandot Cement, and other established corporates, which support receivable quality and reduce counterparty risk. Financial performance has strengthened alongside capacity additions, with revenues increasing from PKR 154 million in FY23 to PKR 354 million in FY24 and remaining broadly stable at PKR 352 million in FY25. While profitability moderated in FY25, with gross margins at 39.6% and net margins at 10.2%, primarily due to higher depreciation and finance costs following debt drawdowns in FY24, margins continue to benefit from recurring revenues from operational assets. The Company has raised long-term financing in two phases under renewable energy facilities, structured for a tenor of 10 years with a six-month grace period. The facilities are secured against project assets and supported by partial risk coverage from GuarantCo, enhancing debt stability and aligning the financing structure with the long-term nature of the underlying assets.
The rating is dependent on Shams Power’s ability to sustain its operating scale and stable cash flows from its installed solar portfolio. Continued stability in operations under its predominantly sale of equipment model, supported by contracted arrangements and receivables from established corporate clients, remains key. The rating is also sensitive to the Company’s financial performance, particularly margin sustainability and cash flow coverage amid higher finance costs. Maintenance of a balanced capital structure, with long-term, asset-backed debt aligned to project lives, will remain an important consideration.

About the Entity
Shams Power Limited is a leading public limited solar energy developer in Pakistan, focused on the commercial and industrial (C&I) sectors. The company was established as a joint venture between its two sponsors: Pakistan Industrial Trading Corporation (PITCO) holds a 45% stake, and Orient Operating Company (OOC) holds the controlling 55% stake. The company is led by CEO Omar Mohy-Ud-Din Malik and has a board and management team with deep expertise in engineering, finance, and power sector operations.