PACRA Maintains the Entity Ratings of Nimir Chemicals Pakistan Limited

Nimir Chemicals Pakistan Limited (hereafter referred as ‘NCPL’ or ‘the Company’) is one of Pakistan’s longest-standing petrochemical manufacturers, primarily engaged in the manufacturing & marketing of Phthalic Anhydride (PA), Di-Octyl Phthalate (DOP), Alkyd Resins (AR), Maleic Anhydride (MA) and other plasticizers for downstream industries (including leather, paint, textile, footwear, sports goods, plastic & PVC). The ratings reflect NCPL’s long-established history and prominent position in the domestic petrochemicals industry, specifically in DOP, notwithstanding an erosion of its PA market share following the entry of new players. Pakistan’s chemicals sector remains structurally import-dependent, with PA, DOP, MA and AR production tied to imported, crude-linked feedstock. International oil prices spiked sharply in early-2026 amid regional supply disruptions before easing, while reduced customs-duty protection and an ongoing anti-dumping review on PA imports have narrowed the pricing cushion domestic producers previously held over imports. These pressures have played out unevenly across NCPL’s portfolio: the entry of new PA producer and imports has structurally eroded the Company’s share in that segment, while DOP, its largest revenue contributor, has remained comparatively more defensible, given minimal import competition. The combined pressures became evident in CY25, with topline contracting ~26.7% YoY to ~PKR 9,125mln, primarily due to lower sales volumes. Profitability was further pressured by margin compression across all levels, as the Company faced limited ability to pass through cost increases. These challenges extended into 1HCY26, when a feedstock-supply disruption amid regional conflict further constrained production, although operating conditions have since begun to normalize. The financial risk profile of the Company is demonstrated by a working capital cycle that stretched further in 1HCY26, weakened coverages, and a capital structure that has eased somewhat from its CY25 peak but remains leveraged, comprising entirely short-term borrowings to meet working capital needs. Going forward, management expects a modest improvement in performance, supported by improved raw-material availability and prospective captive offtake from the sponsor group’s downstream ventures. These factors could support higher capacity utilization, gradual margin recovery, and improved earnings visibility. However, the pace and sustainability of the recovery remain contingent on feedstock-price trends, downstream demand, and the timely execution of the planned captive offtake arrangements.
The ratings remain dependent on the firm’s ability to sustain its market position in the face of a more competitive and less protected industry landscape, alongside a recovery in topline and margins. NCPL’s ability to navigate volatility in feedstock and global commodity prices, sustained recovery in profitability, and a durable strengthening of the balance sheet, will remain imperative.

About the Entity
Nimir Chemicals Pakistan Limited, acquired in 2011 from Knightsbridge Chemicals Limited, London. The present management gained entire stake of NCPL through family members as an intended backward integration strategy. It is involved in the production of petrochemical intermediate products, having two prime products, DOP with installed capacity of ~21,420 MT/p.a. and PA with installed capacity of ~30,000 MT/p.a. Currently, the ownership stays with Mr. Anjum Nisar (~57.05%) and Mr. Tariq Nisar (~42.50%). The board comprises five members; Mr. Anjum Nisar chairs the board whilst Mr. Tariq Nisar serves as the CEO of the Company.