PACRA Upgrades the Entity Rating of Daewoo Pakistan Express Bus Service Limited (DPEBSL)

Daewoo Pakistan Express Bus Service Limited (“DPEBSL” or “the Company”), incorporated in 1997, is one of Pakistan’s most established intercity transport operators. The Company manages a fleet of over 400 buses and operates one of the country’s largest logistics and cargo networks with around 200 cargo trucks and 200+ delivery centers. With more than twenty-seven years of operations, DPEBSL has built a strong nationwide presence. Over time, the Company has expanded beyond intercity transport and entered regulated public sector service platforms. It now operates several major mass transit projects, including the Lahore Feeder Project, Multan Metro Bus Service, Orange Line Lahore (a joint share of operations), BRT Peshawar (Phase I and II), and BRT Karachi covering the Green Line and Orange Line corridors. These projects collectively represent a ~70% market share of the total regulated mass transit projects. Most recently, the Company has expanded its portfolio through the establishment of the Daewoo Waste Management Division (DWMD) under the “Suthra Punjab Initiative” and collaborated with the Punjab Solid Waste Management Company (PSWMC). This flagship engagement covers 22 tehsils across Punjab, one of the largest integrated municipal waste management deployments in the province, and has captured significant national and international recognition. The project incorporates advanced, AI-based monitoring technologies that enable real-time oversight, digitalized workforce management, and data-driven operational control designed to minimize manual intervention and enhance overall service reliability. A KPI-linked performance evaluation linked with a payment mechanism ensures transparent and efficient contract execution while supporting a smooth and systematic transition toward predictable revenue recognition for the Company. The ownership structure of DPEBSL is considered stable and benefits from a strategically aligned sponsor group. The Board demonstrates strong governance practices and provides long-term direction and effective oversight. The Company’s operations are managed by a professional team, supported by a sound system of internal controls implemented across the organization. The rating upgrade reflects the Company’s sustained growth in revenue and profitability, supported by diversified earning streams across its business segments. It also captures the Company’s established track record of effectively managing large-scale public sector projects. During 9MCY25, revenue recorded a growth of ~57% and stood at ~PKR 30,775mln. The Intercity services segment contributed ~31.0%, intracity operations ~26.6%, DWMD ~36.1%, and cargo services ~6.3% in total revenue. The financial risk profile is characterized by comfortable coverages, cash flows, and working capital cycles. Capital structure is leveraged, where borrowings are mainly comprised of long-term loans for CAPEX requirements related to expansions.
The ratings are contingent on the Company’s ability to sustain its revenue growth while maintaining a healthy profitability matrix. Adherence to strong financial discipline and ensuring that leverage remains at a manageable level shall also remain imperative for the sustainability of the ratings. Furthermore, a gradual reduction in receivables from PWMC shall remain important.

About the Entity
DPEBSL is an unlisted public limited company, incorporated on December 22, 1997, under the repealed Companies Ordinance, 1984 (Now the Companies Act, 2017). The Company owns and operates a fleet of vehicles for the transportation of passengers and cargo. Additionally, The Company is also engaged in the O&M of various mass transit projects across Pakistan. The majority ownership of the Company, with a 95.47% stake, is held by Liberty Daharki Power Ltd. which is ultimately owned by Mr. Shaheryar Arshad Chishty, through his wholly-owned companies.