VIS revises At-Tahur outlook to positive

November 03, 2026 (MLN): At-Tahur Limited (PSX:PREMA) has had its entity ratings maintained at ‘A-/A2’ by VIS Credit Rating Company Limited (VIS), with the outlook revised from ‘Stable’ to ‘Positive’.

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

The short-term rating of ‘A2’ denotes a good likelihood of timely repayment of short-term obligations, with sound short-term liquidity factors.

The previous rating action by VIS was taken on 14 July 2025.

VIS said the industry is marked by intense competition and inflationary pressures. It added that business risk is supported by relatively stable demand, a strong brand name, product diversification, experienced sponsors and a sizable livestock base.

The company’s net sales recovered in FY26, mainly on a rebound in demand. Gross margin declined slightly, mainly due to higher forage procurement costs.

Net margin improved in FY26 as overall expenses rose by relatively less and non-operating income increased. Gearing and leverage ratios remain low but edged up on higher borrowings.

VIS said the outlook revision reflects the company’s ability to maintain its financial profile through revenue growth in FY26 and to sustain its liquidity profile.

Operational efficiency is expected to improve further, as pre-bought feed may lower procurement costs and improve herd productivity. Anticipated gains in cash flows and debt service coverage remain key rating considerations.

Looking ahead, management expects herd size to grow organically. VIS said the positive impact of planned exports to the Gulf market, further product diversification, timely feed procurement and partial conversion to solar and biomass energy will be important for the assigned ratings.

Listed on the Pakistan Stock Exchange since 2018, At-Tahur has an established presence in Pakistan’s dairy industry under the Premá brand.

It is backed by an experienced management team, sound corporate governance and a well-developed distribution network.

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