PACRA Maintains Entity Ratings of M.Y. Bari Mills (Pvt.) Limited

The ratings reflect the M.Y. Bari Mills Pvt. Limited’ (“Bari Mills” or the “Company”) established position in Pakistan’s towel export industry, supported by a strong business foundation and the Bari family’s over six decades of experience in the textile sector. Bari Mills is engaged in the manufacturing and export of towels, serving a diversified international clientele, including leading retailers and customers in the hospitality and healthcare sectors. The Company's key export markets include the United States and Europe. Bari Mills operates a vertically integrated manufacturing facility comprising weaving, processing, and finishing operations. Supported by a modern production setup of approximately 190 looms, including air-jet, jacquard, and dobby looms, the Company offers a diverse range of towel products. The Company is currently undertaking capacity expansion in its dyeing, weaving, and washing segments to enhance operational efficiency, strengthen production capabilities, and support growing demand in export markets. During 10MFY26, Pakistan’s total textile exports increased by 1.3% YoY to USD 15.0bln. Towel exports contributed approximately 5.4% of total textile exports and stood at USD 809mln, registering a decline of 10.4% compared to USD 903mln during the corresponding period last year. While demand remained subdued in key export markets, the sector continued to face challenges stemming from elevated operating costs, competitive regional pricing pressures, and a gradually changing global trade environment. In 9MFY26, the Company posted ~13% revenue growth, primarily driven by higher export volumes, supported by the onboarding of new European clients during the review period. Profitability indicators improved on the back of enhanced operational efficiencies, while lower finance costs and a reduced effective tax burden in FY26 provided further supported to net profitability.
The Company’s Board is largely comprised of family members, indicating room for further strengthening of governance practices through greater independent representation. Operational oversight is supported by an experienced management team and a well-established internal control framework implemented across the organization.
The planned capacity expansions are expected to be financed primarily through internally generated cash flows. Management continues to maintain a prudent approach towards leveraging, as reflected in the projected financial forecasts. The Company’s financial risk profile is characterized by comfortable cash flow generation, adequate debt servicing coverages, and a manageable working capital cycle. The capital structure remains leveraged, comprising a mix of long-term and short-term borrowings, with a significant portion availed under SBP’s concessionary financing schemes, including LTFF and ERF.
The ratings are contingent upon the Company’s ability to sustain operational performance, revenue growth, and profitability margins while maintaining a low financial risk profile. Strengthening the governance framework and internal controls to enhance strategic oversight remains important for the ratings.

About the Entity
M.Y. Bari Mills (Pvt.) Limited was incorporated in 2012 as a Private Limited Company. Primary business of the Company is to manufacture and export towels with a total installed capacity of 190 looms. Mr. Haroon Bari owns ~20% of shares and the remaining shareholding is evenly distributed among his five sons (~16% each). The BoD comprises five members with Mr. Haroon Bari as Chairman, who is having an experience of ~53 years in textile industry. The CEO of the Company is Mr. Nabeel Haroon Bari, a graduate from UK in the field of commerce with overall working experience of ~26 years with the group. There is no independent director on the board.