The Pakistan Credit Rating Agency Limited

The Pakistan Credit Rating Agency Limited (PACRA), traded on the Pakistan Stock Exchange under the symbol GEMPACRA, is a Pakistani credit rating agency that evaluates the credit risk of companies and financial instruments. Incorporated on August 18, 1994, the company became a public limited company on April 30, 2004, and joined the PSX Growth Enterprise Market (GEM) Board on June 30, 2025.

PACRA operates under a licence issued by the Securities and Exchange Commission of Pakistan (SECP). Its assessments provide opinions on an entity's or financial instrument's ability to meet debt and other fixed-term financial obligations. Credit ratings are risk assessments, not guarantees of repayment or investment returns.

Business Overview

PACRA's core activities include credit ratings for companies, debt instruments and funds, together with monitoring and related analytical services. Credit ratings can support lenders, investors, issuers and other market participants in evaluating credit risk.

The company also has interests in businesses beyond its core rating operations. Its wholly owned subsidiary, PACRA Analytics (Private) Limited, provides services including financial modelling, risk management advisory, training, research and governance assessment. PACRA also holds interests in Tasdeeq Information Services Limited, a credit bureau, and Lanka Rating Agency Limited in Sri Lanka.

These businesses give PACRA exposure to credit-risk analysis, financial information and advisory services. Their contributions should be assessed using the relevant standalone and consolidated financial statements rather than assuming all group activities contribute equally to earnings.

Sources: PACRA official website and PACRA Annual Report 2026.

Financial Performance

According to PSX's standardized financial data, PACRA reported the following standalone figures for the financial year ended June 30, 2026:

• Revenue: Rs523.24 million
• Profit after tax: Rs128.08 million
• Earnings per share (EPS): Rs1.72

For comparison, PSX's standardized data for FY2025 reports revenue of Rs466.81 million, profit after tax of Rs127.65 million and EPS of Rs1.71. The figures indicate that reported revenue increased in FY2026 while profit after tax remained broadly similar. The standardized PSX figures may differ from the original statements, so investors should use the audited annual report for detailed analysis.

PACRA's financial performance should be assessed through revenue from rating services, operating costs, other income, dividends received from subsidiaries, investment performance and tax expenses. Because income from associated and subsidiary companies can affect reported results, it is important to distinguish recurring operating revenue from other income.

Sources: Official PSX company profile and financial data and PACRA Annual Report 2026.

Shariah Compliance Status

PACRA was classified as Compliant in the PSX-KMI All Share Islamic Index recomposition published on May 29, 2026, using screening data as of December 31, 2025.

The published screening figures for GEMPACRA included:

• Debt ratio: 5.22%
• Non-compliant investment ratio: 13.73%
• Non-compliant income ratio: 1.83%
• Illiquid assets ratio: 20.71%

These figures belong to the stated screening period and should not be presented as current financial ratios without a new review. Investors should verify PACRA's status in the latest official PSX-KMI All Share Islamic Index publication before relying on this classification.

Source: Official PSX-KMI All Share Islamic Index recomposition, May 29, 2026.

Shariah screening status and financial performance are separate considerations. A compliant classification does not guarantee profitability, dividend payments or protection from share-price declines.

Important PSX Risk Warning Alert

The official PSX company profile displays the following Risk Warning Alert:

“The Company is in continuous violation as specified in Clauses 5.11.1. or 5.11.2. and carry risk of suspension of trading or being delisted from the Exchange and may be subject to such terms and conditions as specified by the Exchange.”

Source: Official PSX profile for GEMPACRA.

This is a material regulatory warning and should be reviewed before evaluating the shares. Investors should examine the relevant PSX notices and company announcements to establish the specific outstanding compliance issue and whether any remedial action has been taken. The alert describes a risk of suspension or delisting; it should not be interpreted as confirmation that trading has already been suspended or the company has already been delisted.

Factors Investors Should Monitor

• Rating-business revenue: Monitor income from rating and monitoring services, and the pace at which new clients and instruments generate business.
• Operating expenses: Remuneration, infrastructure, technology and administrative costs can affect operating margins.
• Other income: Dividends and investment-related income may influence total profitability and should be distinguished from core operating earnings.
• Subsidiaries and associates: Review the financial contributions and risks associated with PACRA Analytics, Tasdeeq Information Services and Lanka Rating Agency.
• Regulatory compliance: Track the PSX Risk Warning Alert and subsequent exchange notices, particularly any clarification or resolution of the outstanding issue.
• Shariah screening: Confirm the latest official classification rather than relying indefinitely on a past index review.
• Trading liquidity: GEMPACRA is listed on the GEM Board, and investors should assess actual trading volume, available free float and bid-ask conditions before drawing conclusions from quoted prices.

Investor Learning Point

Credit rating agencies provide opinions on credit risk, but their ratings are not guarantees that borrowers will repay their obligations. When researching a credit rating agency as a listed investment, investors should separately assess the agency's own financial performance, business model, governance and regulatory position.

Frequently Asked Questions

What is PACRA's PSX symbol?

The Pakistan Credit Rating Agency Limited trades under the symbol GEMPACRA on the PSX GEM Board.

What does PACRA do?

PACRA evaluates the credit risk of entities and financial instruments and assigns credit ratings that express opinions about their capacity to meet financial obligations.

Is PACRA Shariah-compliant?

PACRA was classified as compliant in the PSX-KMI All Share Islamic Index recomposition published on May 29, 2026, using December 31, 2025 data. Check the latest official screening publication for any subsequent change.

What was PACRA's FY2026 profit?

PSX-standardized standalone data reports profit after tax of Rs128.08 million and EPS of Rs1.72 for FY2026.

Is there a regulatory warning on PACRA's shares?

Yes. The official PSX profile displays a Risk Warning Alert concerning continuous regulatory non-compliance and possible suspension or delisting. Review the latest exchange notices to establish the current status.

Official Sources

• Pakistan Stock Exchange — GEMPACRA profile, financials and announcements
• PACRA official website
• PACRA Annual Report 2026
• PSX-KMI All Share Islamic Index recomposition, May 29, 2026
• Securities and Exchange Commission of Pakistan — Credit Rating Agencies

Publishing note: Keep the Risk Warning Alert prominent in the published profile and update it only when supported by a verified PSX notice. Financial figures and Shariah screening results should always retain their reporting or screening dates.