PACRA assigns Entity Ratings to Infralectric (Pvt.) Limited.

The assigned ratings of Infralectric (Pvt.) Limited (“The Company or “Infralectric”) factors in its emerging yet strategically significant role as a technology-driven energy infrastructure partner within Pakistan’s rapidly evolving telecommunications sector. The rating reflects the company’s scalable, tripartite operational framework, reinforced by strategic sponsor affiliations and exposure to high-growth sector dynamics, while factoring in adequate financial leverage metrics. Infralectric’s Energy-as-a-Service (EaaS) model employs a deferred sales mechanism, offering Mobile Network Operators (MNOs) end-to-end energy infrastructure and services through 7-year fixed-price contracts that shift their capital expenditures (CapEx) to operational expenditures (OpEx). The system is financed via an 80:20 debt-equity split; 80% from lenders (secured by MNO contracts) and 20% equity from Infralectric, supported by a tripartite partnership (Infralectric, MNOs, lenders) to ensure execution and repayment alignment. This model ensures long-term revenue predictability, risk-sharing, and scalability, while driving benefits like cash flow stability, reduced upfront costs for MNOs, and progress toward sustainability/ESG goals. The company's adoption of advanced digital solutions AI-driven predictive maintenance, IoT-enabled energy optimization, and cloud-based asset monitoring enabled significant CAPEX efficiencies for clients and a substantial annual carbon emission reduction underscoring the Company's alignment with ESG-driven market demands. With an operational footprint of approximately 1,500 telecom sites and committed orders that will expand its portfolio to over 2,500 towers by CY25, Infralectric is set to deploy more than 50 MWh of Energy Storage-as-a-Service capacity delivering estimated annual savings of over 6 million liters of diesel underscoring its execution capabilities in a high-potential, underpenetrated market. Sector dynamics remain favorable, as Pakistan's telecom industry navigates rising energy costs, a significant portion of operating expenses, and an urgent need to reduce its heavy reliance on diesel. The company's financial risk profile reflects elevated leverage levels, with a debt-to-capitalization ratio of 63.2% as of FY24, amplified by IFRS 16 lease capitalization, necessitating disciplined liquidity management until operational cash flows stabilize post-FY25. Notably, the Company adheres to a board-approved debt policy, which restricts debt load exclusively to arrangements under tripartite agreements. Governance mechanisms is evolving around a defined framework, with the planned induction of an independent director set to further strengthen institutional oversight. The company’s expansion into Pakistan’s telecom infrastructure market, while strategically sound, carries heightened competition risks as the sector matures. With over 40,000 towers underpenetrated, the opportunity may attract aggressive new entrants, eroding margins and necessitating sustained investment. Infralectric’s credit profile is anchored by its contractual revenue visibility, technological differentiation, and institutional sponsor credibility, positioning it to harness Pakistan’s structural energy transition narrative.
The company’s ratings are contingent upon its ability to execute its growth strategy, with potential upside tied to an improved financial risk profile. However, key downside risks remain, including unforeseen delays in lease cash flow realization, failure to meet financial obligations in a timely manner, or an unexpected weakening of sponsor support.

About the Entity
Infralectric (Pvt.) Ltd., incorporated in 2021 under Pakistan’s Companies Act 2017, delivers sustainable energy infrastructure solutions for the telecom sector. Majority-owned by SC Technologies Global (51%), with 49% held by Co-Founder/CEO Mr. Bilal Qureshi (30%), Chairman Mr. Abdul Rehman Atif Qureshi (14%), and Co-Founder/Director Ayla Majid (5%), it merges sector expertise with backing from SC Technologies and Brillanz Group.