PACRA Maintains Entity Ratings of ACT Wind (Pvt.) Limited

Tapal, Ismail, and Akhtar groups have established a 30MW wind power project – Act Wind (Pvt) Limited ("Act Wind" or "the Company") located in Jhimpir, Sindh. The project was developed under the Renewable Energy Policy 2006, which ensures a guaranteed internal rate of return (IRR), indexed cost adjustments, and a pass-through tariff mechanism. The Company's revenues and cash flows are subject to two primary risks. First, wind risk: Under the upfront tariff model, the variability in wind availability is borne by the Company, making its cash flows potentially seasonal. The Company is obligated to maintain a 31% annual capacity factor, and the current year efficiency factor stands at 20% (9 months: July 2024 – March 2025) as compared to 22% in the prior full year, with the peak wind season (April–June) yet to be captured. Second, operational risk: The Company is obligated to ensure smooth and uninterrupted plant operations. Mitigating this risk, operations and maintenance are handled by Hydro China, an experienced operator with both international and domestic credentials, providing assurance of continued operational reliability and technical competence. Furthermore, the Company maintains comprehensive insurance coverage.For the six-month period ended 1HFY26 (December 2025), Act Wind reported sales revenue of approximately PKR 843 million, compared to PKR 959 million during the same period in 1HFY25. Net profit declined to around PKR 225 million in 1HFY26 from PKR 263 million in 1HFY25. The dip in earnings was primarily due to decreased operational output caused by lower wind availability and authority-mandated curtailments. However, as per the management, both profitability and energy generation have recovered during the ongoing fiscal period, supported by improved wind conditions and enhanced power offtake by the relevant authority. The Company's liquidity position has remained strong, with timely receipt of payments from CPPA-G. Act Wind has been able to meet its working capital needs entirely through internally generated cash flows, without resorting to short-term financing. The Company's free cash flows remain healthy and sufficient for timely debt servicing. As of the reporting period, Act Wind has successfully repaid approximately 87% of its Commercial loan balance and 88% of its Musharaka loan balance on schedule, without utilizing the forbearance period, highlighting the strength of its financial structure and effective working capital management.
Sustaining sound financial discipline and constantly declining operational performance in line with agreed standards continue to be critical factors influencing the Company's credit profile. The Company's consistent track record of meeting debt obligations through internally generated cash flows remains supportive of its current rating.

About the Entity
ACT Wind (Private) Limited, incorporated in December 2010, is a Renewable Energy Independent Power Producer (RE IPP) operating under the Renewable Energy Policy 2006, overseen by the Alternative Energy Development Board (AEDB). The capital structure includes 75% debt financing of PKR 6,008 million, priced at 3-month KIBOR plus 3% per annum, with a ten-year repayment tenure initiated in April 2017 through twenty consecutive semi-annual installments, nearing its full completion. The Company's shareholding is equally divided among three sponsors: Tapal Group, Ismail Power (Private) Limited, and Akhtar Power (Private) Limited, who consolidated in August 2013 to jointly develop the project. The Board of Directors consists of nine members, with each sponsor nominating three directors. Mr. Maqsood Ismail serves as Chairman, Mr. Adnaan Tapal as CEO since September 2011, and Mr. Mehmood Suleman has recently joined as CFO.