PACRA Maintains Entity Ratings of Brainchild Communications Pakistan (Pvt.) Limited

Brainchild Communications Pakistan Pvt. Ltd (hereafter referred to as ‘Brainchild’ or ‘the Company’) is an integrated service provider specializing in media communication and planning. The ratings are based on the Company’s established business profile and its position within a defined segment of the media industry. Brainchild has evolved from a traditional media and advertising agency into a fully integrated communications group. The Company now offers a comprehensive suite of services, including Integrated Marketing Communications, Media Planning and Buying, Sports Partnerships and Activation, Data Analytics and Research, Social Media Management, Website, App, and Game development, Influencer Marketing, Event Management and BTL activities. This strategic diversification reflects Brainchild’s formal expansion into modern, integrated communication solutions aligned with global industry practices, aimed at enhancing brand visibility, strengthening audience engagement, and delivering measurable business impact. Bee Squared Group, which includes Brainchild, Blitz, PMC and Z2C Pakistan, has established a significant presence in the market. The media industry is undergoing a structural shift toward digital-first strategies, powered by artificial intelligence, streaming ecosystems, gaming platforms, and the rapid rise of social commerce. In Pakistan, the transition is gaining steady momentum, with the advertising market continuing its growth trajectory and total ad spend projected to surpass USD 700mln in CY26. Mobile platforms and social media now command the largest share of advertising budgets, driven by data-led targeting and performance-based campaigns, while traditional media increasingly plays a complementary and support role within integrated, multi-channel strategies. The sponsor's expertise amplifies the ratings, as demonstrated by their well-crafted corporate strategies. The profitability matrix reflects income from both core and non-core operations, including financing arrangements. In FY25, income from total billing declined by ~15%, mainly due to customers’ re-classifications. Net revenue stood at PKR ~1,304mln, down ~6% from PKR 1,380mln in FY24, primarily due to reduced non-core income. Gross margin contracted as a result of lower sales and higher operating expenses; however, the net profit margin improved to ~6% in FY25 (FY24: ~3%), driven mainly by reduced finance costs. Effective cash management remains fundamental to success; improvement in net profit underscores the Company’s ability to manage liquidity and financing efficiently despite margin pressures. The Group is investing in advanced technology to meet the evolving demands of the digital sphere. The financial risk profile is displayed by adequate coverages and cashflows. Capital structure is leveraged, where borrowings are mainly comprised of short-term lines from commercial banks to fund working capital needs and optimize cash management operations.
The ratings hinge on management’s ability to sustain market position amid intense competition and a dynamic business environment. Profitability from both core and non-core operations remains vital, while financial discipline, particularly in working capital management and debt coverage, must be maintained to support stability and growth.

About the Entity
Brainchild Communications Pakistan (Pvt.) Limited was established in 2010 as a Private Limited Company, specializing in comprehensive media communication and planning services. The Company is predominantly owned by Bee Squared (Pte.) Limited, based in Singapore. The Chairman, Mr. Raihan Ali Merchant, is a recognized pioneer in the media and advertising industry. Brainchild has an affiliation agreement with Publicis Groupe. The Company is authorized to use the trademarks of Publicis Groupe divisions, specifically Starcom and Mediavest.