PACRA Maintains Entity Ratings of Martin Dow Limited

The ratings of Martin Dow Limited (hereinafter referred to as “MDL” or the “Company”) reflect the strong business profile of the Martin Dow Group (MDG), an established pharmaceutical group. MDL is an operating and holding Company of the Martin Dow Group (MDG). The Group operates through Martin Dow Limited, Martin Dow Marker Limited, Martin Dow Specialities (Private) Limited, Seattle (Private) Limited, and Martin Dow FZCO. The Group has developed a diversified presence across chronic and acute therapeutic segments, supported by a combination of strategic acquisitions, indigenous product development, and longstanding associations with leading multinational pharmaceutical companies, including Roche, Merck, Sanofi, and Boehringer Ingelheim. The acquisition of products and manufacturing assets from Roche in 2010 and Merck in 2016 has further broadened the Group’s product offering and strengthened its manufacturing capabilities and market reach. MDL’s standalone portfolio encompasses a broad range of pharmaceutical products, with leading positions in multiple molecules and a number of key brands, including Lexotanil, Synflex, Librax, Rocephin, Toradol, and Enflor. The breadth of the portfolio, coupled with the Group’s diversified operations and strategic partnerships, supports MDL’s competitive position in the local pharmaceutical market. Pakistan's pharmaceutical sector continued to grow during FY26, supported by increasing healthcare demand, population growth, and a rising prevalence of chronic and acute diseases. According to IQVIA, Pakistan’s pharmaceutical industry surpassed PKR 1 trillion in annual sales, registering ~20% growth in value terms. Industry expansion remained largely price-led, while volume growth stayed relatively modest. The sector continues to benefit from favorable demographic trends and sustained healthcare demand; however, reliance on imported raw materials and exposure to exchange rate movements remain key considerations for industry participants. Within this landscape, the Martin Dow Group ranks 5th in the industry on a consolidated basis, with revenue of PKR 50.4bln in CY25 as compared to PKR 43.8bln in CY24, representing ~15% year-on-year increase. Profitability also improved across all levels, driven by localization efforts, portfolio enhancement, and a reduction in finance costs. Going forward, the Company will continue to focus on further localization initiatives, operational efficiencies, and portfolio optimization. MDL's governance framework benefits from the sponsorship and oversight of the Akhai family, which has longstanding experience in the pharmaceutical sector. MDL’s financial risk profile marked improvements, supported by adequate cash flow generation, sufficient coverage metrics, and a manageable working capital cycle. The capital structure improved in review period though it remained leveraged, with long-term borrowings primarily utilized for acquisitions and expansion, and short-term facilities employed for working capital management. Looking ahead, the Group intends to continue broadening its product portfolio, strengthening localization initiatives, and expanding its export footprint.
The ratings are dependent on the management's ability to sustain revenue growth and maintain profitability while preserving adequate cash flow generation. Prudent management of working capital, maintenance of sufficient liquidity and coverage levels, and keeping leverage at an appropriate level remain important rating considerations. Furthermore, continued portfolio diversification and growth in export revenues are expected to support the Company's credit profile.

About the Entity
MDL was incorporated in Pakistan on February 6, 1995, as an unlisted public limited Company. In 2010, MDL acquired the Roche facility in Pakistan along with the acquisition and brand licensing of the global product lines from Hoffman-La Roche, Switzerland. Mr. Ali Akhai is the ultimate beneficial owner of the Company. MDL has four members board including the Chairman, Mr. Ali Akhai, Mr. Javed Ghulam Muhammad (CEO), Mr. Abdul Samad (Group CFO), and Mr. Syed Dawood (Independent Director).