VIS maintains J.K Spinning Mills' long-term rating at 'A-'

September 01, 2026 (MLN): VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of J.K Spinning Mills Limited at 'A-/A1' (Single A Minus/A-One), with the outlook on the assigned ratings retained at 'Stable'.

The medium to long-term rating of 'A-' reflects good credit quality, with adequate protection factors, though risk factors may vary with changes in the economy.

The short-term rating of 'A1' indicates a strong likelihood of timely repayment of short-term obligations, supported by excellent liquidity factors.

The assigned ratings reflect the Company's vertically integrated operations and healthy capacity utilization levels across all segments.

Further support is drawn from an increasingly export-oriented sales mix, improved customer diversification, moderate capitalization, adequate liquidity, and satisfactory debt servicing capacity.

The Company's profitability recovered during FY26, supported by improved gross margins on the back of a favorable sales mix and cost efficiencies, while the bottom line benefited from lower finance costs.

Ongoing Balancing, Modernization and Replacement (BMR), higher in-house utilization of spinning capacity, and expansion of solar power capacity are expected to further enhance operational and cost efficiencies going forward.

J.K Spinning Mills Limited ("JKSM" or "the Company") is a public listed textile company based in Faisalabad, operating a vertically integrated manufacturing facility spanning spinning, weaving, processing, stitching, and the buying and selling of yarn, fabrics, and other textile products.

The Company is part of the JK Group, an established business group with a diversified presence across the power, textile, food, and technology sectors.

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