Orient Rental Modaraba Reports FY2026 Results, Recommends Rs1.20 Per Certificate Dividend

Orient Rental Modaraba has announced its financial results for the year ended June 30, 2026, reporting a profit after tax of Rs106.74 million and recommending a final cash dividend of Rs1.20 per certificate, equivalent to 12%.

The financial results were approved by the Board of Directors of EMAN Management (Private) Limited, the management company of Orient Rental Modaraba, at a meeting held on September 25, 2026. The company has also scheduled its Annual Review Meeting for October 27, 2026.

Profit declines during FY2026

According to the financial statements, Orient Rental Modaraba generated total income of approximately Rs2.49 billion during FY2026, compared with Rs2.46 billion in the previous year.

However, higher operating and other costs affected the bottom line. Profit before taxation stood at Rs230.74 million, compared with Rs376.69 million in FY2025. After taxation, profit for the year amounted to Rs106.74 million, down from Rs213.99 million a year earlier. Earnings per certificate also declined to Rs1.42 from Rs2.85.

The company’s financial performance was supported by its core rental and financing activities. Ijarah rentals net amounted to approximately Rs1.28 billion, while operation and maintenance income stood at around Rs1.20 billion during the year.

Dividend recommendation

Despite the decline in annual earnings, the Board recommended a final cash dividend of Rs1.20 per certificate, representing a 12% payout. No bonus shares, right shares or other corporate actions were recommended in the announcement.

The dividend will be payable to shareholders whose names appear in the Register of Members on October 19, 2026. The certificate transfer books will remain closed from October 20 through October 27, 2026, both days inclusive.

Asset base remains substantial

The statement of financial position shows total assets of approximately Rs2.53 billion as of June 30, 2026, compared with Rs2.66 billion at the end of FY2025.

The company’s non-current assets stood at around Rs1.39 billion, while current assets were approximately Rs1.14 billion. Cash and bank balances increased significantly during the year, reaching approximately Rs353.39 million, compared with Rs194.41 million a year earlier.

Total equity stood at approximately Rs1.54 billion at June 30, 2026, compared with Rs1.52 billion in the previous year.

Cash generation improves

Orient Rental Modaraba’s cash-flow statement indicates that the company generated approximately Rs313.99 million in net cash from operating activities during FY2026, compared with a net cash outflow of around Rs168.40 million in FY2025.

After investing and financing activities, cash and cash equivalents increased from approximately Rs194.41 million at the beginning of the year to Rs353.39 million at year-end.

The improvement in operating cash flow provides an important element of the FY2026 financial picture, even as reported profit declined year on year.

Annual Review Meeting scheduled for October 27

The company’s Annual Review Meeting will be held on October 27, 2026, at 10:00 a.m. at the registered office of Orient Rental Modaraba.

The company stated that its Annual Report will be transmitted through PUCARS at least 21 days before the Annual Review Meeting.

Overall, Orient Rental Modaraba’s FY2026 results show a combination of lower reported profitability and stronger operating cash generation. The recommended Rs1.20 per certificate cash dividend remains a key feature of the company’s latest financial announcement, while shareholders will look toward the upcoming Annual Review Meeting for further discussion of the year’s performance.