Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the entity ratings of Masood Spinning Mills Limited, acknowledging the company's robust presence in the competitive textile industry. Masood Spinning Mills, which manufactures and sells various categories of yarn, fabric, and socks, has continued to bolster its market position through operational stability and product diversification.

According to PACRA, Masood Spinning Mills recently expanded into the high-potential socks segment, which includes fashion wear, medicated socks, sports wear, and formal wear, to meet the rising demand for value-added products internationally. The new unit's operational efficiency has been fully realized. In the first quarter of the fiscal year 2026, the company's revenue increased to PKR 8.1 billion from PKR 6.7 billion in the same period the previous year. This growth was driven by a strategic shift towards a sustainable, profit-centric approach, with a focus on domestic market sales and optimization of cost structures, including a fully operational 13.5MW solar project.

The company's net profit also saw an improvement, reaching PKR 94 million compared to PKR 52 million in the first quarter of fiscal year 2025. Masood Spinning Mills finances its working capital needs through internal cash generation and short-term borrowings, maintaining an adequate financial risk profile with manageable cash flows and coverages. The management has outlined strategies to gradually reduce debt levels as part of future plans.

The ratings are dependent on the company's ability to sustain topline growth while maintaining profitability. Generating sufficient cash flows and adhering to an adequate debt matrix remain critical for maintaining the assigned ratings.