PACRA Maintains the Entity Ratings of Golden Packages (Pvt.) Limited.

The ratings reflect Golden Packages (Pvt.) Limited’s (or the “Company”) established position in Pakistan’s flexible packaging industry, supported by the sponsors’ longstanding industry experience and an established operating platform. Over the years, GPL has diversified into key segments, achieved robust capacity utilization, and maintained a stable financial profile, underpinned by adequate profitability and low leverage and capital structure. The Company operates primarily in the Cast Polypropylene (“CPP”) films and flexible packaging segments, with demand largely emanating from food and consumer-oriented industries. GPL’s business profile continues to benefit from its established customer relationships and presence in the packaging value chain. During FY26, the Company remained at a capacity utilization rate of 89%. The Company expanded its flexible packaging operations during FY26 with the entire expansion funded through internal equity. As the basic raw material requirement is almost entirely met through imports from the UAE, the Company remains exposed to exchange rate volatility. The exposure to imported raw-material inputs and associated foreign-exchange and commodity-price movements remains an inherent business risk. Globally, the increase in crude oil prices and freight costs exerted pressure on input costs and compressed margins. The Company maintains a diversified geographical footprint across key domestic markets, with Khyber Pakhtunkhwa representing the largest revenue-contributing region, followed by Punjab, while Sindh provides additional market presence. This regional diversification supports the Company’s market penetration and reduces dependence on any single geographical market.
On financial side, GPL sustained its growth trajectory, with net sales increasing to PKR 9,962mln at the end of FY26 (FY25: PKR 8,992mln). Local sales increased to PKR 10,735mln from PKR 9,488mln, while export sales remained relatively modest at PKR 44mln (FY25: PKR 177mln), indicating that revenue growth was predominantly supported by the domestic market. The Company’s export portfolio is currently limited to Najeeb Insaf Limited, an Afghanistan-based customer. The increase in topline was accompanied by a comparatively faster rise in cost of sales, which increased to PKR 8,701mln (FY25: PKR 7,770mln). Consequently, gross profit increased moderately to PKR 1,261mln (FY25: PKR 1,222mln), while the gross margin moderated to ~12.7% from ~13.6% in FY25. The compression in margins reflects elevated production costs, particularly raw material cost, which increased to PKR 8,084mln from PKR 7,157mln. A material reduction in finance cost provided support to earnings, reflecting the Company’s declining debt burden. Consequently, the profit after tax stood at PKR 1,069mln, up ~3.1% from PKR 1,037mln in FY25. Accordingly, net profit margin moderated to ~10.7% from ~11.5%, primarily reflecting pressure on gross margins. The Company’s financial risk profile remained strong during FY26. GPL’s equity base increased to PKR 5,662mln at the end of FY26 (FY25: PKR 5,094mln).
Going forward, prudent management of working capital, maintaining sufficient cash flows and coverages are essential for the ratings. Any significant change in margins and coverages will impact the ratings.

About the Entity
Golden Packages (Pvt.) Limited was founded as a private limited Company in 2014 and began its operations in 2016 with the commercial production of CPP films. In 2018, GPL also started commercial production of flexible packaging. GPL’s manufacturing plant is located near Raiwind. The Company is wholly owned by sponsoring a family with major ownership residing with Mr. Munir Khan at 54%, Mr. Rehman Khan owns 38% and Mr. Amir Sultan owns 8% shares respectively. Mr. Rehman Khan is the Chief Executive Officer of the Company. He brings over 13 years of relevant experience, including exposure to senior management roles overseas, and is supported by a team of qualified professionals.