PACRA Maintains the Entity Rating of Tariq Glass Industries Limited

Tariq Glass Industries Limited (“the Company” or “TGL”) enjoys a well-established position within the glass industry, supported by its strong reputation and oligopolistic business profile. As a premier manufacturer of tableware, float glass, container ware, and opal glass in Pakistan, TGL has built a robust foothold in the market. The Company’s manufacturing facilities are equipped with advanced capabilities, enabling the production of clear, colored, tinted, reflective, and sandblasted float glass via an online Chemical Vapor Deposition (CVD) coating mechanism, as well as mirrors utilizing the latest Spectrum Technology. Internationally, TGL maintains its export presence; however, the segment remains susceptible to global demand cycles, stiff competition, logistical and geopolitical uncertainties. In the float glass segment, characterized by a duopolistic market structure, the Company maintains an estimated ~50% market share under its flagship brand “ToyoNasic Float Glass.” The Company continues to enhance its corporate governance framework, with independent oversight and established board committees ensuring sound decision-making processes. TGL is managed by a seasoned leadership team led by Mr. Omer Baig (MD/CEO), and its operations benefit from a robust system of internal controls implemented across the organization. The performance of Pakistan’s glass industry remains closely linked to construction sector activity, which has historically been influenced by macroeconomic slowdowns, high inflation, and reduced purchasing power. However, during FY25, improved macro indicators and a significant reduction in policy rates provided support to demand recovery, positively impacting the segment. In tableware and opal glass, TGL boasts a legacy of over four decades, supported by iconic brands such as Toyo Nasic, Omroc, Nova, Rockware, Gemware, and Spinrex. The Company has successfully maintained an impressive ~60% market share in the tableware segment by offering a diversified range of value-added products tailored to household and commercial customers, emphasizing product quality and economies of scale as key strategic pillars. During FY25, TGL’s topline increased to PKR ~33.56bln, reflecting a healthy ~13.4% YoY growth, primarily driven by improved volumetric sales in float glass and selective pricing adjustments. Profitability improved at all levels on the back of enhanced operational efficiencies, optimized energy mix including the successful generation of 3.5 MW through solar power, and improved furnace performance. Gross margins increased to ~31% (FY24: ~26.4%), while operating margins increased to ~27.7% (FY24: ~22.8%). Net margins remained stable at ~14%. The Company’s production facilities include two float glass plants, of which one remains fully functional and operating at maximum capacity. TGL directly holds a 50% stake in MMM Holding (Pvt.) Ltd, the parent company of Baluchistan Glass Limited (BGL). The greenfield float glass project under Lucky TG (Pvt.) Ltd., a joint venture between Tariq Glass Industries and Lucky Core Industries, has been delayed due to prevailing economic conditions in Pakistan, though both partners remain committed to its completion. The financial risk profile of the Company reflects strengthened coverages, improved cash flow generation, and an efficient working capital cycle. The Company maintains a modest leveraged capital structure, supporting financial flexibility and prudent risk management.
The ratings depend on the sustainability of the Company’s growth, profitability, and market share, alongside the maintenance of adequate cash flows and coverage ratios. Additionally, alignment of actual performance with financial projections will continue to be a key consideration.

About the Entity
TGL is a public listed company incorporated in 1978. Mr. Omer Baig is the MD/CEO of the Company who directly owns ~14% shareholding. The board comprises seven members which include two executive director, three non-executive directors, and two independent directors.