PACRA maintains GCIL at ‘A/A1’, turns outlook positive

May 20, 2026 (MLN): Ghani Chemical Industries Limited (GCIL) has reaffirmed its credit profile with a “Maintain” rating action from PACRA, while its long-term rating remains at ‘A’ and short-term rating at ‘A1’.

The outlook has been revised upward from Stable to Positive, with no rating watch assigned.

The Company is engaged in the production, sale, and trading of industrial and medical gases, including oxygen, nitrogen, and argon, serving key sectors such as healthcare, oil and gas, steel, chemicals, pharmaceuticals, and food and beverages.

GCIL operates four air separation units (ASUs) across Lahore and Port Qasim, with a combined capacity of around 710 TPD, recently strengthened by the addition of a 275 TPD modern facility at Hattar Special Economic Zone.

The new plant has improved production efficiency, scale, and cost absorption across the operating base.

Following the demerger of its Calcium Carbide segment, GCIL’s business is now fully concentrated in industrial and medical gases, with revenue contribution split between industrial (~65%) and medical (~35%) segments.

The Company holds an estimated 40% market share, positioning it as a leading player in Pakistan’s gases industry.

During 9MFY26, GCIL posted net revenue of Rs6.0bn, driven by improved pricing discipline and stronger demand across both core segments.

Margins also recorded broad-based improvement, supported by operating leverage, capacity expansion, and energy efficiency gains from the Hattar facility.

The Positive Outlook reflects sustained revenue growth, improving profitability, and strengthening competitive positioning.

Growth initiatives, including diversification into LNG and CO₂ production through a joint venture with Mari Energies Limited, medical gas pipeline systems in partnership with Precision UK, and a planned LPG storage project at Phool Nagar, are expected to further expand the Company’s earnings base.

GCIL’s financial risk profile remains stable, supported by adequate liquidity, manageable working capital cycles, and moderate leverage backed by a mix of long-term and short-term borrowings.

The rating remains contingent on continued topline growth, margin stability, disciplined leverage management, and successful execution of diversification projects, along with sustained market share expansion.

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