PACRA Upgrades Entity Ratings of Multinet Pakistan (Pvt.) Limited

The rating upgrade of Multinet Pakistan (Pvt.) Limited ("Multinet" or "the Company") reflects its expanding network footprint, strengthened business profile, and robust position within Pakistan’s telecommunications infrastructure sector. Incorporated in 1996, Multinet serves as a critical connectivity partner for telecom operators, financial institutions, corporates, SMEs, and international carriers across 87 cities. The strategic importance of Multinet’s network infrastructure is highlighted by its transmission of approximately 25% of cellular traffic and 50% of financial market traffic nationwide. The Company continues to capitalize on favorable structural tailwinds across Pakistan’s digital economy, including surge in data consumption, rapid enterprise digitization, heightened demand for cloud and cybersecurity solutions, and the initial structural shift toward 5G deployment. During 1HCY26, Multinet maintained top-line momentum, generating net revenue of PKR 2.87bln an increase of 10.3% compared to PKR 2.60bln in 1HCY25. Revenue growth was anchored by an extensive, recurring customer base and long-standing relationships with tier-1 sector participants. Profitability margins demonstrated positive progression, gross profit margin expanded to 40.2% in 1HCY26 (1HCY25: 38.0%), while operating profit margin remained resilient at approximately 15.0%. Multinet’s financial risk profile remains sound, characterized by low leverage metrics, healthy cash flow generation, and comfortable debt service capacity. Free Cash Flow from Operations (FCFO) rose to PKR 637mln during 1HCY26 (1HCY25: PKR 567mln), propelling the coverage ratio higher to 4.6x (1HCY25: 4.4x). The assigned upgrade fundamentally incorporates the Company's expanding fiber network reach, demonstrated capability to capture increasing data traffic, continuous investment in infrastructure capacity, and sound balance sheet structure.
The ratings remain dependent on the management’s ability to sustain top-line growth trajectory, uphold operational and gross profit margins, and maintain sound debt coverage indicators. Effective working capital management and disciplined execution of future capital expenditures are essential to preserving the financial profile.

About the Entity
Multinet Pakistan (Private) Limited was incorporated in Pakistan on November 04, 1996, as a Private Limited Company under the repealed Companies Ordinance, 1984, now superseded by the Companies Act, 2017. The Company operates as an unlisted private entity. Major shareholding (99%) resides with Mr. Adnan Asdar Ali. The Company provides end-to-end digital connectivity and technology solutions, including high-speed broadband, cloud computing, managed IT, cybersecurity, IoT, and data analytics. Utilizing a robust long-haul and metropolitan optical fiber network, it delivers infrastructure and capacity services to telecom operators, alongside international voice termination and fixed-line telephony.