PACRA Maintains Entity Ratings of Awan Trading Company (Pvt.) Limited

Awan Trading Company (Pvt.) Limited ("Awan Trading" or "the Company") has reinforced its position as one of Pakistan's leading importers and suppliers of thermal coal, supported by long-standing sourcing relationships with reputable suppliers in South Africa, Indonesia, and the United States. During FY26, the Company imported approximately 2.46mln tons of coal valued at PKR 77.35bln, maintaining its strong market presence with an estimated 32.36% market share in Pakistan's imported coal market during FY26. The Company's diversified procurement network, coupled with efficient inventory management, supports supply chain reliability and operational resilience. The imported coal market witnessed a recovery during FY26, driven by increased demand from coal-based Independent Power Producers (IPPs) following disruptions in RLNG-based power generation, lower interest rates, and higher public sector development spending. Additionally, international coal prices strengthened during 4QFY26 due to geopolitical tensions in the Middle East and disruptions to global shipping routes. Consequently, Awan Trading reported net revenues of PKR 89.72bln for FY26. Profitability improved, reflecting the high-volume, asset-light nature of bulk commodity trading, gross and net profit margins recovered to 6.7% and 1.7%, respectively in 3QFY26. The Company's financial profile remains supported by the absence of long-term borrowings, prudent utilization of short-term working capital facilities, and a healthy liquidity position, evidenced by an increase in short-term investments to PKR 1,432mln. The ratings reflect the Company's customer concentration, with the IPP segment accounting for approximately 79.76% of total sales, supported by a strategic, long-standing supply relationship with a premier tier-one IPP entity, which accounts for 73.9% of revenues. Furthermore, the Company's business remains exposed to fluctuations in international coal prices, foreign exchange movements, and shifts in Pakistan's energy mix. Recognizing these challenges, management is actively executing its strategic diversification roadmap, establishing functional footprints in broader commodity segments to systematically mitigate sector concentration, with the objective of reducing concentration risk and enhancing long-term business sustainability.
The assigned ratings remain dependent on the Company's ability to sustain revenue growth and profitability while preserving its strong financial profile and liquidity position. Successful execution of the diversification strategy, expansion of the customer base, continued strengthening of governance practices, and prudent working capital management will remain key rating considerations. Any material weakening in profitability, liquidity, or business diversification may exert pressure on the ratings.

About the Entity
Awan Trading Company (Pvt.) Limited, incorporated in October 1992, is one of Pakistan's leading importers and traders of thermal coal, serving the power, cement, and industrial sectors. Following the commencement of active operations in 2002, the Company has established a strong market position through long-standing relationships with international suppliers and an extensive distribution network. It operates strategically located storage facilities at Port Qasim, PIBTL, Taxila, and Chicho Ki Maliyan, ensuring efficient nationwide supply. The Company is jointly owned by the Tekwani family (73.24%) and the Awan family (26.76%), and is led by Chief Executive Mr. Govind Ram, supported by an experienced management team and a four-member Board of Directors.