PACRA Upgrades the Entity Ratings of Orient Energy Systems (Pvt) Limited

Orient Energy Systems (Pvt) Limited (“the Company” or “OES”) has built a formidable standing as an integrated provider of power generation equipment, renewable energy solutions, and a broad spectrum of industrial support services. The Company’s portfolio includes generators, solar panels, wind turbines, lubricants, and building services equipment, supported by a strong after-sales platform covering spare parts, technical services, and EPC and turnkey renewable energy solutions. As an authorized dealer of leading global manufacturers, OES maintains a well-established presence in Pakistan’s engineering sector. OES recorded net revenue of PKR ~9.74bln as of May26, demonstrating strong progress toward its projected FY26 revenue of PKR ~13.56bln. This sustained topline momentum reflects a deliberate strategic repositioning: the Company has progressively reduced its reliance from gas-fired gensets toward renewable EPC and allied services, with wind emerging as the Company’s primary growth engine. Renewable revenues for 11MFY26 stood at PKR ~3.38bln, including ~PKR 1.6bln from wind EPC activity and PKR ~372mln from O&M contracts across six wind farms, providing a recurring annuity-based income stream and strengthening revenue visibility. Going forward, the Company’s FY27 wind revenue outlook is supported by confirmed orders aggregating USD ~59.7mln across 15–19 projects. A meaningful portion flows through OESFZCo, the Dubai Free Zone subsidiary, which handles international procurement and cross-border turbine coordination. OESFZCo maintains a strong financial profile and serves as a strategic offshore platform for the Group, enabling efficient sourcing and supporting foreign-currency margin capture, while the domestic entity focuses on installation, commissioning, and long-term O&M revenues. The second pillar of the Company’s portfolio is its Product Support and Services segment, encompasses spare parts, lubricants, repair, overhaul, and maintenance of installed equipment and generated PKR ~3.73bln in FY26, providing a stable, relationship-driven revenue stream that offsets EPC cycle volatility. Generator sales, though moderating as gas availability constraints persist, remained a contributor at PKR ~1.91bln in cumulative FY26 revenues, with the Company actively managing its inventory exposure and focusing on higher-margin product lines. OES’s balance sheet has expanded to PKR ~14.53bln as at May26 from PKR ~12.23bln in FY25, driven mainly by higher contract assets (PKR ~2.36bln) representing IFRS-based revenue recognition on completed EPC milestones not yet billed, alongside increases in inventory and trade receivables aligned with expanded project activity. Receivable days have increased due to the scale-up in EPC operations; however, management remains comfortable with recoverability, supported by established customer relationships, and offsetting inflows from customer advances and structured payment arrangements, thereby maintaining stable working capital dynamics. The capital structure continues to reflect moderate leverage, with short-term borrowings and import finance facilities supporting the working capital intensity of large-scale EPC execution. The ratings upgrade reflects the cumulative effect of several favorable developments: a consistently growing topline over multiple years, a decisive strategic shift toward renewable energy, reduced dependence on a single product category, and the financial resilience demonstrated by the group’s UAE subsidiary.
The assigned ratings are underpinned by successfully execution its FY27 wind pipeline, supported by ongoing capacity building and strengthening of its project execution capabilities, while continuing to sustain profitability and further enhance its financial profile.

About the Entity
Established as a partnership in 1996 and incorporated in 2010, OES is fully owned by ASJN Holdings (Pvt.) Limited. The Company is led by CEO Mr. Nasim Ahmed and the group is led by Group CEO Mr. Teizoon Kisat.