PACRA Assigns Initial Entity Ratings to Inverex Power Solutions.

Inverex Power Solution (“IPS”) is a family-owned business engaged in the trading and import of solar panels, inverters, and batteries. The rating reflects IPS’s established presence in the solar and inverter market, its strong relationships with suppliers and customers, and the sponsor’s solid business acumen. IPS also benefits from the backing of three associated entities—Inverex Electronics (Pvt.) Ltd., Apt Industries (Pvt.) Ltd., and Inverex Motors (Pvt.) Ltd. This consolidated structure enhances financial flexibility, supports resource sharing, and strengthens IPS’s ability to sustain growth and maintain competitiveness in the renewable-energy sector. Over the past few years, the solar industry in Pakistan has experienced a significant surge in demand driven by rising electricity costs, supportive government policies, and increased adoption of renewable solutions. IPS has effectively capitalized on this trend by expanding its product offering, strengthening its supply chain, and enhancing its market outreach, allowing the IPS to grow in line with broader industry momentum. As per management, IPS holds a predominant market share in the inverter segment, while maintaining an adequate share in solar panels and batteries. Despite intensifying competition, with multiple players importing and marketing similar solar products, IPS has been able to sustain its margins in panels and batteries, supported by established supplier relationships. Margins in the inverter segment remain comparatively stronger, reflecting IPS’s product efficiency, competitive positioning, and brand strength. Going forward, while advancements in solar technology are expected to intensify competition, demand for inverters is likely to remain stable, supported by IPS’s strengthened market presence and sustained demand irrespective of improvements in solar panel efficiency. Collectively, these factors reinforce the IPS's market presence and support its ongoing business sustainability. On the financial side, IPS exhibited solid growth in FY25, with total assets rising to PKR 14.5bln as of Jun’25 (Jun’24: PKR 11.3bln), reflecting higher business activity and inventory buildup in line with expanding operations. The equity base strengthened to PKR 1.4bln (Jun’24: PKR 1.2bln), supported by consistent profitability. IPS reported a topline of PKR 38.8bln in Jun’25 (Jun’24: PKR 35.8bln), driven by sustained demand for solar solutions and an expanded product footprint. Gross profit improved to PKR 3.2bln (Jun’24: PKR 2.2bln), with margins rising to 8.5% (Jun’24: 6.3%) on account of better pricing discipline, enhanced operational efficiencies, and stronger contribution from the inverter segment. PAT stood at PKR 728mln (Jun’24: PKR 732mln), remaining stable despite higher taxation imposed on imports. Overall, the financial profile reflects healthy business momentum, improved profitability at the gross level, and sustained market positioning.
The rating depends on IPS’s strong market positioning, supported by its dominant inverter share, established supplier relationships, and backing from a well-entrenched business group. The rating further relies on sustained revenue growth, improved gross profitability, and a strengthened asset base.

About the Entity
Inverex Power Solution is a family-owned business in which Mr. Zakir Ali plays a pivotal role, overseeing day-to-day business operations and driving IPS's strategic decision direction and growth. Although, he is independently managing the business, the sole proprietorship's shareholding has been transferred to, Ms. Sarwat Zakir, his wife, for administrative and management purposes. Now she 100% owns Inverex Power Solutions.