KARACHI: Popular Islamic Modaraba has announced a final cash dividend of Rs0.70 per certificate, equivalent to 7%, for the financial year ended June 30, 2026, according to a notice submitted to the Pakistan Stock Exchange. The dividend was approved by the Board of Directors at its meeting held on September 30, 2026.
The company reported profit after taxation of Rs15.04 million for FY2026, compared with Rs25.71 million in the previous financial year. This represents a decline of about 42% year-on-year. Earnings per certificate also decreased to Rs0.75, from Rs1.39 in FY2025.
The decline in earnings came despite the Modaraba remaining profitable during the year. Income stood at approximately Rs28.77 million, compared with Rs41.74 million a year earlier. Operating expenses were reported at Rs7.55 million, while depreciation of property and equipment-Ijarah amounted to Rs2.35 million. After other income of about Rs1.06 million, profit before management-related charges was reported at Rs19.43 million.
Following management fees, sales tax on management fees and provisions, the Modaraba posted profit before tax of Rs17.92 million. Taxation amounted to Rs2.88 million, resulting in the reported profit after tax of Rs15.04 million.
Balance Sheet and Cash Position
Popular Islamic Modaraba’s total assets stood at Rs230.47 million as of June 30, 2026, compared with Rs238.08 million at the end of FY2025. Non-current assets were reported at Rs106.84 million, while current assets amounted to Rs123.63 million.
The company’s cash position improved substantially during the year. Cash and bank balances increased to Rs15.37 million, compared with Rs3.93 million a year earlier. The statement of cash flows shows that the Modaraba generated Rs17.08 million in net cash from operating activities during FY2026.
The company also reported Rs19.13 million in dividend payments during the year. Net cash used in financing activities therefore stood at the same amount. Overall, cash and cash equivalents increased by Rs11.43 million during FY2026.
Annual Review Meeting Set for October 23
The Modaraba has scheduled its Annual Review Meeting (ARM) for Friday, October 23, 2026, at 10:00 a.m. at its office at Chapal Plaza, Hasrat Mohani Road, Karachi. The meeting will review the Modaraba’s performance for the year ended June 30, 2026.
The certificate transfer books will remain closed from October 16 to October 23, 2026, both days inclusive. Transfers received by the close of business on October 15 will be considered in time for the relevant entitlements.
The financial statements indicate that while Popular Islamic Modaraba experienced a notable decline in annual profitability, it continued to generate positive operating cash flow and maintained a cash dividend for certificate holders. The company’s FY2026 results and the approved dividend will be among the key matters for certificate holders at the upcoming Annual Review Meeting.
