PACRA retains AGP’s long-term rating at A+

October 27, 2026 (MLN): AGP Limited has had its entity ratings maintained by the Pakistan Credit Rating Agency (PACRA) at A+ for the long term and A1 for the short term, with a stable outlook, as of October 22, 2026.

The ratings reflect the company’s established presence in Pakistan’s pharmaceutical sector and its strategic importance within the OBS Group, though they remain contingent on sustained topline growth and profitability.

AGP’s consolidated revenue stood at Rs 11.53bn in 1HCY26, down about 20 % on an annualized basis from Rs 28.89bn in CY25.

PACRA attributed the fall mainly to lower exports after the closure of the Afghanistan border, a shorter winter season and softer demand for the company’s products. Despite this, gross and net profit margins held at a healthy 59 % and 14 %, respectively.

The financial profile remained adequate, with comfortable coverage indicators and cash flows, though the net working capital cycle lengthened during the period. The capital structure remained leveraged due to borrowings for acquisitions, modernization and capacity expansion.

On the business side, AGP maintains a diversified portfolio across gastroenterology, respiratory, cardiometabolic, gynecology, ophthalmology, orthopedics, neuropsychiatry, pediatrics and nutraceuticals, with brands including Azomax, Rigix, Osnate D, Norvasc and Ceclore.

The OBS Group ranked 7th and AGP consolidated 15th in the latest available IQVIA rankings. The company runs three GMP-compliant manufacturing facilities.

PACRA noted that the pharmaceutical industry stayed resilient in 1HCY26, supported by population growth, rising healthcare awareness, wider access to healthcare and gradual regulatory improvements.

Deregulation of non-essential medicine pricing gave manufacturers more room to manage pricing pressures and cost inflation.

The industry still faces challenges from currency fluctuations, dependence on imported raw materials and competitive pricing pressures, but its medium-term outlook is supported by rising healthcare spending and demand for quality branded generics.

Going forward, AGP is expected to benefit from its diversified portfolio and market presence, with growth supported by commercialization of recently acquired brands, new molecules, further portfolio expansion and deeper penetration of existing therapeutic areas.

PACRA said adequate cash flows and access to alternative funding sources for debt servicing are critical, while adherence to internally defined leverage thresholds is a key requirement.

The agency also pointed to a stable ownership structure under OBS and board-level oversight with independent representation.

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