PACRA Maintains Entity Ratings of Secure Logistics Trax Group Limited

The ratings of Secure Logistics Trax Group Limited ("SLG Trax" or "the Company") reflect its established presence in Pakistan's logistics sector through a group structure with a dedicated entity for each business line. The holding company runs logistics operations through a company-owned fleet, while the remaining business lines are housed in subsidiaries, all wholly owned except Sky Guards (75%). Trax Online (Private) Limited, acquired through the CY25 amalgamation, provides e-commerce, last mile and warehousing services. LogiServe (Private) Limited houses the technology platform and IoT and asset tracking, and conducts fintech and digital lending under its NBFC license, including COD financing and instant settlement for merchants. FIST Security (Private) Limited and Sky Guards (Private) Limited provide security services. The structure enables first to last mile logistics with embedded financing. Pakistan's logistics sector remains highly fragmented, with a sizable unorganized segment exerting pricing pressure on formal operators, alongside high operating costs, infrastructure gaps and slow technology adoption. During the review period, fuel price volatility, inflation and regional geopolitical tensions weighed on transportation volumes, reflected in a ~40% YoY decline in the Company's logistics division revenue to PKR 384mln (1HCY25: PKR 639mln). In contrast, e-commerce growth, which remains largely cash on delivery based, continues to support demand for courier services, organized warehousing and technology enabled fulfillment, with the Company's domestic courier revenue rising ~55% to PKR 778mln (1HCY25: PKR 503mln). Against this backdrop, the Company's network of 191 premises, company-owned fleet and TIR certification support its competitive positioning. Company's governance framework is supported by an experienced Board providing oversight on strategic, operational, and technological initiatives. The sponsors' extensive industry expertise and continued commitment remain a key strength underpinning the Company's long-term growth strategy. During 1HCY26, the company’s consolidated revenue grew by ~5% on an annualized basis and stood at ~PKR 1.5bn (CY25: ~PKR 2.9bn). Gross margin remained broadly stable compared to CY25, while operating and net margins improved, supported by group synergies and operational efficiencies. The Company’s financial risk profile is considered strong, supported by comfortable coverages, healthy cashflows, and an efficient working capital cycle. The capital structure of the Company remained conservatively leveraged. Going forward, the Company plans to broaden its service offering through warehousing expansion, with Karachi operational and Lahore and Islamabad to follow, automation of fulfillment centers, the launch of express courier services and phased cross-border operations under its TIR license, subject to border conditions. In parallel, the Company is gradually transitioning its logistics fleet toward electric vehicles (EVs), including electric bikes and commercial EVs, supported by solar powered charging at warehouses. Furthermore, LogiServe (Private) Limited, now operational as an NBFC, plans to complete its FinTech platform integration and broaden embedded financing products for logistics and e-commerce clients.
The assigned ratings are contingent upon the enhancement of the Company’s business profile and the successful execution of its strategic objectives. Sustained prudent financial performance in accordance with projected forecasts, robust liquidity management, and strict adherence to financial discipline will be essential to maintain these ratings.

About the Entity
SLG-Trax is a publicly listed entity operating six Business Lines (BL) through its holding company and four subsidiaries. Sponsors and family hold ~36%, Trax Global PTE ~28%, KBP (Saudi Bugshan Group) 11%, Karandaaz ~2% and the general public ~23%. Mr. Pervaiz Khan, Executive Director, brings 40+ years of experience in investment banking and energy, while Mr. Gulraiz Khan, CEO, has managed the Company's operations for ~15 years.