KARACHI: Orient Rental Modaraba (ORM) reported a sharp decline in profitability for the nine months ended March 31, 2026, as higher levies and lower operating margins weighed on its financial performance. The company announced the results following a meeting of its Board of Directors held on April 28, 2026. No cash dividend, bonus shares, right shares, or any other corporate action were declared.
According to the unaudited financial statements, the Modaraba posted a profit after tax of Rs71.72 million for the nine-month period, down 53.5% from Rs154.41 million recorded in the corresponding period last year. Earnings per certificate also declined to Rs0.96, compared with Rs2.06 a year earlier.
The company’s total revenue remained broadly stable at Rs1.84 billion, supported by higher operation and maintenance income, although net Ijarah rentals declined during the period. Gross profit fell to Rs347.64 million from Rs455.46 million in the same period last year, reflecting increased operating costs and lower margins.
Operating profitability was further impacted by administrative expenses, finance costs, and an impairment loss on financial assets. Although finance costs declined to Rs61.64 million from Rs91.10 million, the company recorded significantly higher levies of Rs82.01 million, compared with Rs34.11 million in the corresponding period, reducing profit before taxation to Rs147.53 million.
For the quarter ended March 31, 2026, Orient Rental Modaraba earned a profit after tax of Rs20.77 million, compared with Rs51.91 million in the same quarter last year. Quarterly earnings per certificate stood at Rs0.28, down from Rs0.69.
On the balance sheet, total assets stood at approximately Rs2.54 billion as of March 31, 2026, compared with Rs2.66 billion at the end of June 2025. Cash and bank balances improved to Rs224.70 million from Rs194.41 million, supported by positive operating cash flows during the period.
The Modaraba generated net cash from operating activities of Rs127.89 million, a notable improvement from the net cash outflow of Rs254.01 million reported in the corresponding period last year. Investing activities generated Rs5.51 million, while financing activities recorded a net cash outflow of Rs103.11 million, resulting in an overall increase in cash and cash equivalents during the reporting period.
Despite maintaining stable revenue and improving operating cash generation, Orient Rental Modaraba’s earnings came under pressure due to weaker gross profitability and higher statutory levies. The management did not recommend any distribution to certificate holders for the period.
