PACRA places NIMIR Industrial Chemicals ratings on Rating Watch

November 13, 2026 (MLN): NIMIR Industrial Chemicals Limited (PSX:NICL) has had its entity ratings placed on Rating Watch by PACRA, which maintained the long-term rating at A+ and the short-term rating at A1, with a stable outlook.

The Rating Watch reflects the expected change in the company’s ownership, as its majority shareholders have entered into a Share Purchase Agreement with Cherat Cement Company Limited for the sale of a stake of about 51%.

According to the PACRA rating action dated Nov 11, 2026, the sale is subject to conditions precedent and regulatory approvals.

The agency said the rating implications of the change in sponsor cannot be fully determined at this stage and that it will monitor developments, resolving the Rating Watch once the transaction is completed.

PACRA said the ratings reflect NICL’s strong and diversified presence in Pakistan’s chemical industry, its long-standing pioneering position in oleochemicals and its third-party manufacturing ties with leading multinational FMCG companies.

NICL makes and sells oleochemicals and chlor-alkali products, including soap noodle, stearic acid, glycerin and caustic soda, and also provides toll manufacturing for toilet soaps, aerosols, personal care and home care products.

On financials, net revenue for FY26 rose about 6.7% to Rs48.29bn from Rs45.26bn in FY25, continuing the recovery from the macroeconomic-driven contraction in FY24.

Gross margin improved to about 15.7% from 14.8%, helped by an efficient pricing strategy and cost discipline despite input cost and exchange rate volatility. The oleochemicals segment benefited from recovering demand, while the chlor-alkali segment saw a decline in volumes.

The agency said the Hub, Balochistan facility, acquired from Procter & Gamble Pakistan, is now operating at optimum capacity.

Its installed soap noodle capacity rose to about 84,000 MT in FY25 from about 54,000 MT in FY24, strengthening the third-party manufacturing segment and the company’s footprint in the southern region.

Major capital projects, including the Liquid Chlorine and Chlorinated Paraffin Wax plants, have moved to full commercial operations, which removes implementation risk.

PACRA described the financial risk profile as one of improving coverages, supported by free cash flow generation and lower finance costs.

The capital structure shows a deleveraging trend driven mainly by growth in the equity base, while total borrowings stayed broadly stable as long-term debt repayments were offset by higher short-term borrowings.

However, working capital has lengthened over the past two years because of longer receivable collection periods, which needs continued monitoring.

The ratings depend on continued expansion of the revenue base along with sustained improvement in margins and profitability, PACRA said.

Prudent management of the working capital cycle, optimum capacity utilisation and compliance with the shared financial projections remain important, while successful completion of the transaction, the resulting ownership structure and the support of the new sponsor will be key rating considerations.

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