PACRA Maintains Entity Ratings of TPL Trakker Limited

TPL Trakker Limited maintains an established presence in Pakistan’s vehicle tracking industry, supported by a broad product portfolio and a long operational history. Over the years, the Company has evolved from a conventional vehicle-tracking provider into a technology-driven solutions company offering Telematics, IoT, Mapping, Data Analytics, and multiple adjacent services. It has introduced solutions in fuel management, smart energy management, cold-chain monitoring, fleet management, AI-enabled video surveillance, and automated fuel terminals. While these initiatives demonstrate strategic intent to diversify and reposition the business, most of the new verticals are still at a nascent revenue-contribution stage, and vehicle tracking & monitoring remains the dominant income stream. The country’s tracking and telematics industry continues to expand as demand strengthens for logistics visibility, fuel efficiency, and asset security. However, operators face constraints arising from high operating costs, reliance on imported equipment, and fluctuations in the automobile segment. These factors make it difficult to forecast demand patterns and limit the pace at which industry participants can scale their operations. Within this context, the Company’s efforts to broaden its offering and enter new technology domains represent a long-term opportunity, but the benefits are expected to materialize gradually rather than offset immediate revenue pressures. During FY25, the Company completed the acquisition of full ownership of TPL Security Services to enhance portfolio breadth and expected to bring operational synergies in the future. Regionally, the Gargash Group has increased its shareholding in Trakker Middle East LLC to 70.3%, reflecting confidence in the long-term potential of the business; however, this has resulted in TPL Trakker’s reduced ownership, limiting consolidation benefits for the parent. Astra Location Services Private Limited (Astra), the wholly owned digital-mapping subsidiary, continues to expand its customer base through improved data infrastructure and strategic partnerships. Most of the planned capital expenditure has already been undertaken, and a number of initiatives are approaching commercialization; however, their meaningful financial contribution is yet to materialize. Accordingly, to closely monitor execution and performance outcomes, the ratings have been placed on Rating Watch, while the Outlook remains Developing. In FY25, revenue declined by ~30% year-on-year, primarily due to the completion of a major customer contract and the reclassification of Astra from subsidiary to associate, which reduced consolidated topline. Margins contracted across all levels, with the net profit margin turning negative at –3.9%. Liquidity remains under pressure due to elevated working capital needs, while coverage and cash flows are modest. The capital structure remains leveraged, comprising both short-term and long-term borrowings.
The ratings depend on the successful conversion of upcoming ventures into sustainable revenue streams, supported by positive performance indicators such as maintaining adequate cash flows, profits, and margins as outlined in the financial projections. Additionally, adherence to financial discipline remains critical for the ratings.

About the Entity
TPL Trakker Limited (TPLTL) is a publicly listed company, majority owned by TPL Corp Limited with a shareholding of ~64%. The Company operates as a leading telematics and technology solutions provider. Its core business includes vehicle and container tracking, fleet management, data analytics, and digital mapping services, along with a range of integrated technology-based monitoring solutions. The Board of Directors comprises eight members and is led by the Chairman, Mr. Jameel Yusuf. The Company is managed by an experienced leadership team under the Chief Executive Officer, Mr. Nader Nawaz.