PACRA Maintains the Entity Ratings of Nayatel (Private) Limited

Nayatel Private Limited’s (hereinafter referred to as “The Company”) ratings reflect a strong business profile and established position within Pakistan’s telecommunications industry. The Company specializes in triple-play services offering telephony, cable TV, and data through its advanced networks. Its product suite includes ultra-broadband, high-definition cable TV, and allied services, underpinned by robust technology infrastructure. The Company’s core revenue originates from the flagship product, i.e., FTTH (Fiber to the Home), and over the period established a strong presence and captured a significant market share. As a part of its diversification strategy, the Company has expanded into the FTTT (Fiber to the Tower) segment, achieved significant milestones, and established itself as a market leader. The stability of Nayatel hinges on its strong business model, robust technology infrastructure, unwavering commitments to customer service, and continuous innovation in service offerings, which ensure consistent reliability and customer retention in a technology-driven environment. The latest data from the Pakistan Telecommunication Authority (PTA) reveals that Nayatel ranks third in the FTTH segment, holding a significant share of active subscribers. This achievement underscores the Company’s strong position in a rapidly growing market. Currently, Nayatel operates in 15 cities across Pakistan, leading the market in Islamabad and Rawalpindi, with ongoing expansion into new areas within these cities. The Company has also expanded its operations to Sargodha, Sialkot, Sheikhupura, Bahawalpur, Sahiwal, Lahore, Multan, Gujrat, Muzaffargarh, Rajanpur, and Attock. During CY24, the Company’s topline clocked in at PKR 9,405mln (CY23: ~PKR 7,835mln), reflecting a growth of ~20% primarily driven by the acquisition of new customers and an increase in ARPU. A diverse customer base spanning corporate and household segments further supports pricing flexibility, margin resilience, and efficient network utilization. The FTTH market remains competitive, with operators’ strength closely tied to the breadth and quality of their self-laid fiber optic networks. Looking ahead, the potential entry of a global player in Pakistan’s broadband space could reshape the local market dynamics, particularly in the unserved and remote areas; however, the eventual impact will be contingent on the operating model, pricing strategies, timing, and scale of deployment adopted. Governance practices are considered sound, with room for further strengthening through the inclusion of independent oversight. The Company benefits from a skilled and cohesive management team, with experienced leadership fostering a performance-driven culture. The financial risk profile is considered good with comfortable cashflows, coverages, and working capital management. Capital structure is leveraged, encompassed by long-term borrowings for CAPEX and expansion.
The ratings are dependent on the Company’s ability to maintain its leadership position within its business niches in a dynamic market environment. Achieving consistent revenue growth, improving margins, and delivering on prudent financial management, as outlined in Company projections, will remain critical. However, adherence to maintaining its debt metrics at an adequate level is a prerequisite.

About the Entity
Nayatel (Private) Limited, established in 2004, owned by Micronet broadband (Pvt.) Limited (MBL). Mr. Wahaj us Siraj, is the CEO of Nayatel possessing an experience of over two decades in the broadband industry. The other 2 founders i) Mr. Aqeel Khurshid and ii) Mr. Saad Saleem holds the position of CTO and COO, respectively.