Karachi, April 24, 2026: Popular Islamic Modaraba has reported a profit after tax of Rs10.24 million for the nine-month period ended March 31, 2026, compared with Rs17.06 million recorded in the corresponding period last year.
According to the financial results approved by the company’s Board of Directors on April 24, 2026, the Modaraba’s earnings per certificate stood at Rs0.51, down from Rs1.00 a year earlier. The company did not announce any cash dividend, bonus shares, right shares or other entitlement for the period.
Revenue and profitability
Popular Islamic Modaraba posted income of Rs22.28 million during the nine months ended March 31, 2026, compared with Rs32.92 million in the same period of the previous year.
Operating expenses declined to Rs5.40 million from Rs6.00 million, while depreciation of Ijarah assets fell to Rs1.83 million from Rs3.48 million. As a result, operating profit stood at Rs15.05 million, compared with Rs23.45 million last year.
Other income amounted to Rs753,738, taking profit before management fee to Rs15.80 million. After management fee and sales tax on management fee, the figure stood at Rs14.89 million before taxation.
The Modaraba recorded a tax expense of Rs4.65 million, resulting in profit after taxation of Rs10.24 million.
Quarterly performance also weaker
For the three months ended March 31, 2026, Popular Islamic Modaraba reported profit after tax of Rs2.51 million, compared with Rs3.95 million in the same quarter of the previous year.
Quarterly income declined to Rs5.95 million from Rs8.41 million, while operating profit stood at Rs3.27 million against Rs5.64 million a year earlier. Earnings per certificate for the quarter were Rs0.13, compared with Rs0.23 in the corresponding period.
Assets and cash position
Despite the decline in earnings, the Modaraba’s total assets increased to Rs264.26 million as of March 31, 2026, compared with Rs238.08 million as of June 30, 2025.
Cash and bank balances also improved significantly, reaching Rs41.41 million at the end of March 2026, compared with Rs3.93 million at June 30, 2025.
The balance sheet shows certificate holders’ equity of Rs209.58 million, while accumulated loss stood at Rs19.40 million. Total liabilities increased to Rs50.88 million from Rs14.61 million at the end of June 2025.
Stronger operating cash generation
The cash flow statement shows that Popular Islamic Modaraba generated Rs29.42 million in net cash from operating activities during the nine-month period, substantially higher than Rs11.53 million generated in the same period last year.
After investing and financing activities, net cash increased by Rs37.47 million, taking cash and cash equivalents to Rs41.41 million at March 31, 2026, compared with Rs22.88 million a year earlier.
Overall, Popular Islamic Modaraba remained profitable during the nine-month period, although earnings declined compared with the previous year. At the same time, the company recorded a stronger cash position and higher total assets, providing an important counterpoint to the year-on-year reduction in profitability.
