PACRA Maintains Entity Ratings of Irfan Noman Brothers (Private) Limited

The ratings reflect Irfan Noman Brothers (Private) Limited’s established position in Pakistan’s rice export industry, supported by its longstanding operating history, diversified international customer base, and experienced sponsoring family. The Company has maintained a presence across more than 40 export markets, with key destinations including Indonesia, Malaysia, China, and African markets. Its export portfolio remains predominantly weighted towards non-basmati rice, comprising approximately 70–75% of the rice business. International markets account for approximately 75% of total revenue, while the Company has progressively diversified its revenue base through local sales and trading activities, including solar panels. The Company continued to operate in a challenging industry environment during FY26. Pakistan’s total rice exports declined by approximately 26% to 4.29 million metric tons, valued at USD 2.29 billion, compared with 5.82 million metric tons valued at USD 3.25 billion in FY25. The decline was primarily concentrated in the non-basmati segment, driven by heightened competition in international markets and an oversupply of rice globally. In addition, disruptions to key shipping routes amid the Middle East conflict increased logistical challenges and affected the timing of export shipments.
Amid these prevailing conditions, the Company’s revenue declined by approximately 15% to PKR 16.4 billion in FY26 from PKR 19.3 billion in FY25, mainly reflecting lower international prices, particularly in the IRRI segment. The Company demonstrated resilience in its profitability profile despite the decline in topline. Gross profit margin improved to 9.2% in FY26 from 8.9% in FY25, with net profit margin improving to 0.8% from 0.2%. The Company’s governance framework remains adequate, supported by experienced sponsors. The financial risk profile, however, remains an important consideration. Working capital efficiency was impacted in FY26, with the net operating cycle lengthening from 49 to 85 days. This expansion was driven by higher inventory holding periods tied to deferred exports. Consequently, increased working capital requirements forced a heavy reliance on short-term credit, escalating total debt from PKR 3.64 billion to PKR 6.46 billion. Short-term facilities comprised 93.7% of this obligations mix, driving leverage up from 57.6% to 67.2%. Going forward, the gradual resumption and normalization of export flows coupled with a supportive international price and demand outlook for rice should alleviate liquidity constraints.
The ratings remain dependent on improvement in revenue and profitability, efficient working-capital management, prudent leverage, and maintenance of adequate debt-servicing capacity amid prevailing industry and export market pressures.

About the Entity
Irfan Noman Brothers (Private) Limited (‘the Company’), incorporated in February 1998, is primarily engaged in the processing of semi-processed non-basmati and basmati rice. The Company exports its products to Malaysia and over 40 additional countries, with annual processing capacity of 420,000 metric tons and storage capacity of 55,000 metric tons. During FY26, the Company processed approximately 150,743 metric tons, representing a capacity utilization of 35.9%. The Company is wholly owned by the sponsoring family, with ownership equally divided between the families of Mr. Irfan Ahmad Sheikh, Chairman of the Board and Mr. Noman Ahmad Sheikh, the CEO.