Sindh Modaraba Reports Rs112.1 Million Profit for Nine Months Ended March 2026
Sindh Modaraba recorded a profit after tax of Rs112.1 million for the nine months ended March 31, 2026, according to its condensed interim financial statements. The result, however, was lower than the Rs142.8 million profit reported during the same period last year, reflecting a decline of around 21.5%.
The Modaraba generated total income of approximately Rs248.7 million during the nine-month period. Its income streams included diminishing musharaka, morabaha, sukuk investments, bank deposits and term deposit receipts. Diminishing musharaka remained the largest contributor, generating about Rs186.8 million, while morabaha income stood at approximately Rs23.5 million.
At the same time, administrative and operating expenses increased to around Rs81.0 million, compared with Rs66.4 million in the corresponding period of the previous year. The company also recorded a reversal of provision against diminishing musharaka receivables amounting to approximately Rs9.4 million.
Quarterly Performance Remains Stable
On a quarterly basis, Sindh Modaraba reported a profit of Rs36.6 million for the quarter ended March 31, 2026, broadly in line with the Rs36.7 million recorded in the same quarter last year.
Basic earnings per certificate for the nine-month period stood at Rs2.49, down from Rs3.17 a year earlier, while diluted earnings per certificate were reported at Rs0.46, compared with Rs0.99 in the previous year.
Assets and Equity Expand Significantly
Despite the decline in profitability, the Modaraba’s balance sheet expanded considerably. Total assets reached Rs3.22 billion as of March 31, 2026, compared with Rs2.06 billion at June 30, 2025.
Current assets stood at around Rs2.41 billion, with morabaha finance accounting for approximately Rs939.4 million and cash and bank balances totaling nearly Rs633.6 million.
Certificate holders’ equity also increased to Rs3.04 billion, compared with Rs1.99 billion at the end of June 2025. A key factor behind the increase was the addition of a Rs1 billion subordinated fund received from the management company, taking the total subordinated fund to Rs2 billion.
Cash Position Strengthens
Sindh Modaraba ended the nine-month period with Rs633.6 million in cash and cash equivalents, compared with Rs552.7 million at March 31, 2025. The company received Rs1 billion in subordinated funding during the period, while dividend payments amounted to approximately Rs60.6 million.
Overall, Sindh Modaraba’s latest financial results present a mixed picture. While profitability declined compared with the previous year, the institution recorded substantial growth in its asset base, equity and liquidity position. The stable quarterly profit and stronger balance sheet provide important context as the Modaraba moves into the final quarter of the financial year.
