logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
19-Oct-26

Analyst
Tasveeb Idrees
Tasveeb.Idrees@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains the Entity Ratings of Stylers International Limited

Rating Type Entity
Current
(23-Oct-26 )
Previous
(23-Oct-25 )
Action Maintain Maintain
Long Term A A
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

Stylers International Limited (“SIL” or “the Company”) is an established player in Pakistan’s textile industry. The Company's vision is focused on strengthening its core business, moderately diversifying into attractive segments, and maintaining sound governance to support long-term sustainability. Over the years, SIL has established a notable presence in international markets, supported by its state-of-the-art production facilities and adherence to premium quality standards. The Company is also progressively integrating Environmental, Social, and Governance (ESG) considerations into its business practices, reflecting its focus on sustainable operations. The Company’s product portfolio comprises denim jeans, twill jeans, denim shorts, trousers, chinos and various kids' wear products. Operating with two manufacturing facilities, the Company’s overall production capacity has reached approximately 10.5mln pieces per annum.

To capitalize on the growing demand for value-added products, SIL initiated a strategic expansion under the “Sunshine Facility.” Infrastructure development remains underway, with Phase I partially operational during FY26, contributing an additional production capacity of 5,000 pieces and achieving a capacity utilization level of approximately 75%. Despite intense competition from regional players, the Company recorded a topline of PKR 18.8bln in FY26 (FY25: PKR 20.7bln). Denim jeans remained the largest contributor to the Company’s revenue.

Gross profit margin improved marginally, supported by cost optimization initiatives and investments in alternative energy sources, including a biomass plant, International Renewable Energy Certificates (IRECs), and solar power. Additionally, income generated from the placement of surplus funds in bank deposits supplemented overall profitability, while limited reliance on external financing helped contain finance costs. However, the transition from the Final Tax Regime to the Normal Tax Regime for export-oriented units continued to pose a challenge to the Company’s profitability. Consequently, net profit remained broadly stable at PKR 1.1bln in FY26, compared to PKR 1.2bln in FY25.

The Company’s working capital requirements are primarily financed through internally generated cash flows and sponsor support. The financial risk profile remains strong, underpinned by effective working capital management, a minimally leveraged capital structure, healthy debt coverage indicators, and cash flow generation. Going forward, management expects the additional production capacity to support gradual growth in revenue and profitability as the operations scale up.
.
The ratings are dependent upon the intact business operations and draw comfort from the sponsor’s profile. Sustaining margins, debt coverage, and cash flow generation at adequate levels, while expanding business volumes, remains critical.

About the Entity
Stylers International Limited was established in 1991. The Company operates under the umbrella of the US (Umer Siddique) Group. The Company’s major stake is owned by sponsors through Individual Holdings (69.70%) and Associate Companies (29.60%). While the remaining stake rests with the General public (0.54%) and Others (0.16%). The Board comprises seven members, including the Chairman & CEO. The Board is chaired by Mr. Javed Arshad Bhatti.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.