PACRA Maintains Entity Ratings of Lumen Energia (Pvt.) Ltd.

Lumen Energia (Pvt.) Ltd. (“Lumen” or “the Company”) operates in Pakistan's renewable energy sector, focusing on sustainable industrial steam production through biomass combustion. The assigned ratings reflect the stabilization of its developing operational footprint and expanding revenue base. The ratings are further supported by Lumen’s strategic affiliation with its sister concerns, Axis Environment Services which develops Clean Development Mechanism (CDM) and renewable energy projects and Scandic Green Energy (Pvt.) Ltd., a specialized biomass supply and briquetting entity. These affiliations provide substantial technical depth, resource access, and operational synergy.
The Company has successfully transitioned into a multi-facility operation with the commissioning of its second plant, which commenced commercial supply in April 2026. This joins Lumen's first operational facility in Kabir Wala, Punjab. Both plants are identical, each possessing a production capacity of 20 metric tons per hour (TPH) of steam. The projects were executed under a debt-to-equity structure of 75:25, with the long-term debt component secured via a commercial financing facility from Bank Alfalah Limited. On the financial front, the Company experienced consistent, uninterrupted steam offtake throughout the period, which drove the robust expansion in top-line performance. Consequently, revenue reached PKR 309 million during 9MFY26, marking a 54% growth compared to PKR 201 million in 9MFY25 and already surpassing the full-year FY25 revenue of PKR 299 million. Profitability margins remained stable during 9MFY26, with the Company posting a gross margin of 19.8%, an operating margin of 18.6%, and a net margin of 3.9%. Concurrently, overall leveraging improved and stood at 71.8% in 9MFY26 compared to 75.8% in FY25, supported by the timely and regular repayment of its debt obligations. However, debt service coverage ratios remained modest, reflecting the impact of the initial debt burden on the Company’s immediate cash flows. The Company benefits from sponsors possessing extensive experience and a demonstrated track record of successful business ventures.
The assigned ratings remain contingent upon Lumen’s ability to sustain profit margins and strengthen liquidity buffers. Moving forward, strict adherence to financial discipline and continuous operational efficiencies will be pivotal in supporting and improving the credit profile.

About the Entity
Lumen Energia (Pvt.) Limited, incorporated in 2010, is an unlisted private company headquartered in Islamabad, focusing on biomass-based energy solutions. The Company operates steam production plants in Kabir Wala and Sahiwal, using agricultural waste to generate industrial steam. The Company plays a pioneering role in sustainable energy, aiming to reduce carbon footprints through innovative biomass utilization. The Company's major ownership resides with partners Mr. Arif Alam (49%), Ahmad Naveed Ismail (51%). Mr. Arif Alam, with his sound entrepreneurial skills, serves as the Chief Executive Officer.