Lahore: PACRA has maintained the entity ratings of Poly Pack (Pvt.) Limited, reflecting the company's stable market position, experienced management team, and strong customer profile. According to The Pakistan Credit Rating Agency Limited, Poly Pack is a family-owned business with extensive expertise in packaging since 1991. The company specializes in polypropylene woven bags and has a diversified portfolio including polyethylene films and flexible packaging products.

The raw material for Poly Pack's products is primarily imported, exposing the company to exchange rate risks. Despite challenges such as rising energy costs and inflation affecting profit margins, demand from sectors like FMCG and food is expected to support moderate production growth, with the industry outlook remaining stable. The company has maintained its market share by focusing on quality and customer retention, operating at 89% capacity in FY25.

Financially, Poly Pack saw a 19% increase in topline revenue in FY25, reaching PKR 18,445 million, driven by higher sales volumes. However, the gross profit margin declined to 5.1% in FY25 due to increased raw material costs. The company's leverage increased to 16.3% by the end of 6MFY26, mainly due to short-term borrowings for business expansion. The ratings are contingent on the management's ability to improve margins and sustain market share, with any significant changes potentially impacting ratings.