PACRA Maintains Entity Ratings of My Petroleum (Pvt.) Limited

My Petroleum (Pvt.) Limited ("My Petroleum" or "the Company") maintains its position as an emerging player in Pakistan's competitive oil marketing sector, supported by experienced sponsors and a diversified business group. The Company operates a retail network of 80 dealer-based outlets across Punjab and Sindh. During FY25, its storage capacity was expanded from 5,500 MT to approximately 7,000 MT, with further expansion planned. To support this growth trajectory, the Company is also exploring the induction of a joint venture (JV) partner, which could bring in capital and technical expertise. During FY26, Pakistan's oil marketing industry witnessed total petroleum product sales of ~16.2 million MT, broadly flat YoY. My Petroleum's net sales declined by 25.9% to ~PKR 15,756 million (FY25: PKR 21,067 million) due to lower volumetric sales. Margins came under pressure, with gross margin declining to 3.9% (FY25: 4.9%) and net margin remaining low at 0.5% (FY25: 0.6%). As the Company relies heavily on imports, it remains exposed to exchange rate risk, which has negatively impacted profitability. The financial risk profile remains adequate. The working capital cycle elongated to ~44 days in FY26 (FY25: ~25 days) due to higher inventory days. However, the current ratio remained stable at ~4.7x (FY25: ~2.5x), indicating adequate short-term liquidity. Coverage ratios showed a slight improvement, with EBITDA/Finance Cost standing at ~1.9x (FY25: ~1.7x), reflecting lower financing costs. During FY25, the capitalization profile strengthened by PKR 1,200 million. Consequently, shareholders' equity stood at PKR 3,177 million as of FY26 (FY25: PKR 3,110 million), and the leverage ratio improved substantially to 40.9% (FY25: 38.6%; FY24: 66.7%). While the balance sheet holds a weak borrowing cushion, adequate financial flexibility, demonstrated through sponsor support as a subordinated loan, bodes well for the Company.
The ratings remain sensitive to the competitive and regulated nature of Pakistan's oil marketing sector, which is exposed to global oil price fluctuations, exchange rate movements, and regulatory changes. The ratings will also depend on the Company's ability to successfully execute its expansion plans, sustain margin improvements, and grow sales volumes. Strengthening governance through independent oversight on the Board also remains imperative

About the Entity
My Petroleum (Pvt.) Limited was incorporated in January 2016 and became commercially operational in September 2019. The Company is engaged in the procurement, import, storage, distribution, and marketing of POL products and lubricants. It operates all over Punjab and some areas of Sindh with a total storage capacity of ~7,000 MT, located at Habibabad and Mirpurkhas. My Petroleum is a family-owned business with a major stake held by Mr. Tariq Wazir Ali (~95.3%) and his wife (~4.6%). The Company has a family-dominated Board, chaired by Mr. Tariq Wazir Ali. He is also the CEO of the Company and is aided by experienced professionals.