PACRA Maintains the Entity Ratings of Select Technologies (Pvt.) Limited

Select Technologies (Private) Limited (hereafter referred to as ‘SELECT’ or ‘the Company’) is a wholly owned subsidiary of Air Link Communication Limited. The Company specializes in manufacturing, assembling, and selling smartphones and related accessories in Pakistan under renowned mobile phone brands. SELECT has established itself as a key player in Pakistan’s technology sector, backed by a sustainable business model and strong support from its parent company. The Company has a state-of-the-art assembly line in Lahore, with a current capacity of 2.7mln units per annum in a single shift for Xiaomi handsets assembly. Xiaomi remains one of the world’s leading smartphone manufacturers, known for delivering high-quality products at competitive prices. As of Sep’25 (Q3), Xiaomi maintained its global smartphone market share at ~13.6% in one quarter. During CY25, the Pakistan Telecommunication Authority’s (PTA) latest statistics reflect a marginal ~3.7% decline in local mobile assembly, with total volumes at 30.21mln units. By the end of 2025, Infinix is leading the market with ~12.1% share, followed by VGO TEL (~11.8%), and Vivo (~9.3%). In Contrast, Xiaomi’s market share reduced to ~4.6% share in CY25 compared to ~7.5% in CY24. This decline is primarily attributed to a combination of higher taxes imposition and aggressive pricing strategies of the current leaders, who have successfully captured the budget-to-midrange segment. Nonetheless, SELECT’s standalone performance improved QoQ, with net sales reaching to ~PKR 11,332mln in 1QFY26. Margins also strengthened across all levels, supported by lower COGS, enhanced operational efficiency, and higher non-core income. SELECT operates with a leveraged capital structure, primarily relying on short-term borrowings to fulfill the cash margin requirements for opening LCs for the import of mobile parts and components. The Company’s financial risk profile is characterized by an adequate working capital cycle, coverage ratios, and cash flows. Going forward, the Company is approaching completion of its new manufacturing facility at Sundar Green Special Economic Zone (SGSEZ), which is expected to enable the production of additional products under new brands. In this regard, SELECT has also entered into a strategic partnership with a leading global electronics brand for the manufacturing of smart TVs and air conditioners. The initiative is set to diversify the Company’s product portfolio and broaden its revenue base, reducing reliance on a single product category or principal while improving earnings resilience and supporting medium-term growth visibility.
The rating depends on the Company’s ability to sustain its relative position amidst competitive environment and its sustainable business partnership with global brand. With topline growth, prudent financial discipline, particularly in cashflows and leverage, will remain imperative.

About the Entity
Select Technologies (Pvt.) Limited was incorporated in Pakistan on October 13th, 2021, as a private limited entity. Its registered head office is located at Quaid-e-Azam Industrial Area Kot Lakhpat, Lahore, Pakistan. The Company’s ~99.999% financial stake rests with AIRLINK (parent company). The board of SELECT comprises five members, including Mr. Muzzaffar Hayat Paracha (Group CEO / Director) and Mr. Adnan Aftab (CEO of SELECT), both individuals are associated with the group for over two decades and hold related industry experience. They are being assisted by a qualified team.