PACRA Maintains the Entity Ratings of Din Energy Limited

Pakistan’s renewable energy sector continues to progress under the Alternative and Renewable Energy (ARE) Policy, aimed at diversifying the national energy mix and reducing reliance on imported fuels. While projects benefit from sovereign-backed commitments and zero fuel risk, sector-wide challenges remain, including delayed payments from CPPA-G, macroeconomic headwinds, and regulatory uncertainties. Against this backdrop, Din Energy Limited, a 50 MW wind IPP established in 2014 in Deh Kohistan, Sindh, operates under a tariff arrangement awarded following NEPRA’s True-Up determination. Operations remain supported by long-term O&M partners Siemens Gamesa Renewable Energy (Pvt.) Limited and Orient Energy Systems (Pvt.) Ltd.
The Company’s financial and operational profile strengthened during FY26, supported by higher generation, scheduled debt repayments, and robust cash generation. Net delivered generation increased to 142.81 GWh in FY26 (FY25: 114.14 GWh), resulting in top-line growth to PKR 2,504 million compared to PKR 1,825 million in FY25. Liquidity improved, with the current ratio strengthening to 3.4x (FY25: 2.7x) and working capital days reducing to 72 days (FY25: 84 days). Capital structure risk moderated as total borrowings declined to PKR 7,621 million (FY25: PKR 8,850 million), bringing leverage down to 64.4% (FY25: 72.3%). Deleveraging progressed with cumulative debt repayments reaching 26% of foreign and 41% of local project obligations. Additionally, Din Energy Limited executed an Amendment Agreement with CPPA-G, effective May 2025, providing greater certainty around receivable settlements and introducing a revised delayed payment rate of KIBOR + 1%. The agreement caps the exchange rate on return components, though the major financial implications will come into effect after full debt repayment. The ratings also draw strength from the Company’s ownership by the Din Group, a diversified business group with established presence across multiple sectors, providing strategic oversight and sponsor support.
The ratings remain dependent on the Company’s ability to sustain operational performance, maintain adequate cash flow generation and debt-servicing capacity, ensure timely recovery of receivables and continue prudent financial management. Continued deleveraging and effective management of wind resource variability will remain key to the Company’s financial profile.

About the Entity
Din Group, established in 1954 is a diversified Pakistani business group with presence across textiles, construction, and energy. Din Energy Limited, incorporated in 2014, operates a 50MW wind power project in Deh Kohistan, District Thatta, Sindh, which commenced commercial operations in March 2022. The project was developed under the Renewable Energy Policy 2006 on a Build, Own and Operate basis over approximately 325 acres and was financed through a mix of local and foreign debt. The project has a 25-year Energy Purchase Agreement with CPPA-G and a long-term O&M arrangement with Siemens Gamesa Renewable Energy and Orient Energy.