PACRA Maintains the Entity Ratings of Gul Ahmed Electric Limited

The ratings of Gul Ahmed Electric Limited (“GEL” or “the Company”) reflect its strong business profile, supported by an experienced management team, and professional oversight of operations. It operates a 50MW wind power project under a cost-plus tariff regime, with revenues emanating by selling electricity to CPPA-G. GEL has its wind power plant located in Jhimpir, District Thatta, Sindh, which achieved Commercial Operations Date (COD) on April 7, 2022, and has been supplying electricity to the national grid since then. During FY25 the plant generated 129,544 MWh of electricity (FY24: 118,718 MWh), translating into a load factor of 29.58% (FY24: 27.10%), while maintaining required operational benchmarks (Availability: 98%, Capacity: 38%). The variation in generation remains attributable to wind intensity patterns and grid demand dynamics. For FY25, the Company reported revenue of PKR 2,180 million (FY24: PKR 2,671 million), reflecting energy delivered to the national grid under the agreed tariff mechanism. Outstanding trade receivables stood at PKR 1,158 million (June 2024: PKR 1,032 million). Subsequently, as of September 2025, receivables were recorded at PKR 1,084 million. The Company’s capital structure remains project-financed, comprising a mix of foreign and local long-term debt with structured repayment profiles. As of December 2025, cumulative outstanding amount stood at approximately 81% of the foreign facility and 65% of the local facility, reflecting continued adherence to the agreed amortization schedule. Debt servicing capacity remains supported by predictable cash flows under the cost-plus tariff framework, though liquidity sensitivity persists due to receivable build-up trends. The ratings incorporate GEL’s association with the Gul Ahmed Group, which provides financial strength and governance oversight. Hydrochina International Engineering Company Limited and Hangzhou Huachen Electric Power Control Company served as EPC contractors, and Hydrochina International Engineering Company continues as the O&M operator, supporting operational stability throughout the Power Purchase Agreement (PPA) tenure.
Going forward, the Company’s ability to sustain operational performance, ensure timely debt servicing, and manage receivable cycles amid evolving sector dynamics will remain critical to the ratings. Any significant adverse regulatory changes or prolonged stress in payment flows from the power purchaser may impact the Company’s liquidity profile and ratings trajectory.

About the Entity
Gul Ahmed Electric Limited, incorporated in December 2015, is a Renewable Energy Independent Power Producer (RE IPP) operating under the Renewable Energy Policy 2006 by AEDB. Being a wholly owned subsidiary of Gul Ahmed Energy Limited, the Company's primary venture is a 50MW wind IPP located in Jhimpir, District Thatta, Sindh. The total project cost amounts to USD 62.95 million, financed through an 80:20 debt-to-equity structure. Under the leadership of CEO Mr. Danish Iqbal, the Company benefits from experienced management and established operational expertise in the renewable energy domain.