Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity rating of Nagina Cotton Mills Limited (NCML), a key member of the Nagina Group, one of Pakistan's oldest and well-established textile clusters. The entity rating reflects the company's solid operational foundation, driven by a vertically integrated textile profile and steady export segment focus. Despite industry-wide challenges such as fluctuating cotton prices and energy costs, NCML's financial performance has shown stability.

According to The Pakistan Credit Rating Agency Limited, NCML continues to benefit from its strategic position within the Nagina Group, with strong intra-group linkages that bolster its operational strength. The company's energy needs are met through a diversified mix, including solar energy, which now accounts for approximately 16% of daily requirements. While the spinning and weaving industry remains primarily a price-taker, NCML's financial metrics have improved, with a notable increase in net margin to 0.5% for the first nine months of FY26. The company's governance structure, supported by a stable management team, has played a crucial role in maintaining operational and financial discipline.

The company's ratings are supported by its improving coverage and leverage profile, despite the industry's margin constraints and uncertain export demand. NCML's ability to sustain margins through operational efficiencies, maintain a balanced sales mix, and uphold coverage and leverage metrics will be critical for future rating considerations.