PACRA Maintains the Entity Ratings of Nayatel (Pvt.) Limited

Nayatel (Pvt.) Limited’s (hereafter as ‘Nayatel’ or ‘the Company’) ratings reflect a strong business profile and long-established position within Pakistan's telecommunication industry. The Company specializes in triple-play services, offering telephony, cable TV, and data through its advanced FTTH network, underpinned by robust technology infrastructure. The Company's core revenue continues to originate from its flagship FTTH (Fiber to the Home) product, through which it has established a strong presence in its core markets. As part of its diversification strategy, the Company also operates in the FTTT (Fiber to the Tower) segment, having connected 3,658 mobile towers as of June 2026 through partnerships with major cellular operators; the segment continues to grow but remains a modest contributor to overall revenue, at ~4.5% in CY25. Nayatel's stability is underpinned by its established business model and continuous innovation in service offerings, supporting customer retention in a technology-driven environment. As per PTA’s (Pakistan Telecommunication Authority) latest statistics, Nayatel holds a market share of ~8% among fixed broadband/FTTH operators, ranking behind PTCL (~31%) and StormFiber/Cybernet (~25%); the Company, however, maintains a dominant position within its core, more mature markets, with an estimated ~76% city-wide subscriber share in Islamabad, excluding Rawalpindi, and near-100% in select high-density areas. Nayatel now operates across 16 cities, with continued expansion into newer markets. During CY25, the Company's topline increased to PKR 11,357mln (CY24 restated: ~PKR 9,405mln), reflecting growth of ~20.8%, primarily driven by continued customer additions, house-pass expansion, and rising ARPU; this momentum continued into 1QCY26, with revenue growing further by ~15.2% year-on-year. A diversified corporate and household customer base continues to support pricing flexibility and margin resilience. The FTTH market remains competitive, with operator strength closely tied to the breadth and quality of self-laid fiber optic networks. Looking ahead, finalization of the Fixed Satellite Services framework paves the way for LEO (Low Earth Orbit) satellite entrants such as Starlink, targeted for commercial launch by late CY26; the eventual competitive impact will depend on pricing, timing, and scale of deployment, with satellite broadband expected to initially target enterprise, rural, and underserved segments rather than compete directly with urban FTTH. Governance practices are considered adequate, with room for further strengthening through the inclusion of independent directors and formally constituted board committees. The Company benefits from an experienced and cohesive founding management team. The financial risk profile is considered good, supported by comfortable cash flows and improving coverages. The capital structure, however, remains leveraged, with leverage increasing to ~56.5% in CY25 (CY24: ~51.7%), primarily reflecting higher borrowings to finance the Company’s elevated capex program.
The ratings are dependent on the Company's ability to maintain its position within its core markets amid a dynamic and increasingly competitive environment. Achieving consistent revenue growth, sustaining margins, and delivering on prudent financial management, as outlined in Company projections, will remain critical. However, adherence to maintaining debt metrics at an adequate level, particularly given the recent increase in leverage, is a prerequisite.

About the Entity
Nayatel (Pvt.) Limited, established in 2004, is owned by Micronet Broadband (Pvt.) Limited (MBL). Mr. Wahaj us Siraj is the CEO of Nayatel, possessing over two decades of experience in the broadband industry. The other two founders, Mr. Aqeel Khurshid and Mr. Saad Saleem, hold the positions of CTO and COO, respectively.