Intermarket Securities Posts Strong FY2026 Results, Strengthening Its Position in Pakistan’s Capital Market

Intermarket Securities Limited (IMS) has reported a strong financial and operational performance for the year ended June 30, 2026, supported by higher market activity, stronger foreign institutional business and benefits from its integration with EFG Hermes Pakistan. The company’s latest annual report highlights not only improved profitability but also continued investment in governance, technology, sustainability and client-focused services. 284068

Revenue and Profitability Show Significant Growth

Intermarket Securities recorded operating revenue of approximately Rs.1.87 billion during FY2026. The company reported profit before taxation of Rs.904.64 million, while profit after taxation reached Rs.544.45 million, with earnings per share standing at Rs.0.42. 284068

The financial statements show that investment income also contributed positively to overall results. Total income before administrative and other expenses reached approximately Rs.2.00 billion, while the company maintained a strong operating profit of more than Rs.1.0 billion before finance costs, levies and taxation. 284068

Market Share Expands

A key highlight of the year was the improvement in IMS’s market position. The company’s market share increased to 7.75% from 7.58% in the corresponding period, reflecting stronger market participation and foreign activity. 284068

The annual report notes particularly strong growth across major client segments. During the second half of FY2026, revenues from retail clients, financial institutions and foreign institutions increased by 47%, 59% and 2.3 times year-on-year, respectively. The increase in foreign institutional revenue was attributed primarily to the benefits of the EFG merger. 284068

EFG Hermes Merger Continues to Deliver Benefits

The integration following the merger with EFG Hermes Pakistan has become an important part of IMS’s growth story. The company says synergies from the transaction are already producing tangible benefits, particularly through stronger institutional relationships and expanded business capabilities.

The merger, effective July 2024, resulted in the listed entity being renamed Intermarket Securities Limited. Today, the company provides equity brokerage, research and corporate access, IPO underwriting, financial advisory, consultancy and investment-related services.

Pakistan’s Improving Market Environment Supports Growth

The company’s performance also benefited from a more supportive macroeconomic environment. According to the annual report, declining inflation, lower interest rates, stronger remittances and relatively stable currency conditions helped improve investor confidence and market participation.

The KSE-100 Index gained 44% during FY2026, while traded value reached a record level of approximately PKR57 billion, up 48% year-on-year. Banks, fertilizer and exploration and production companies were among the sectors contributing to the broader market rally. 284068

Although foreign investors continued to record net selling during the year, the report notes that local companies, mutual funds and individual investors absorbed much of this selling, demonstrating increasing depth and resilience within Pakistan’s equity market. 284068

Focus on Governance and Sustainability

Alongside financial growth, IMS has placed greater emphasis on corporate governance and sustainability. The company has established an ESG Implementation & Sustainability Committee, while its sustainability assessment identified areas for further improvement in environmental, social and governance practices.

The FY2026 sustainability framework focuses on issues including market and business risks, regulatory compliance, cybersecurity, employee wellbeing and environmental responsibility. The company also says it intends to strengthen ESG screening, client protection, data management, climate resilience and sustainability reporting over the coming years.

The FY2026 performance snapshot reports 96 employees, seven reported offices and 100% of client complaints resolved within the applicable service standard. It also records the introduction of a Shariah-compliant brokerage window during the year. 284068

No Cash Dividend Recommended

Despite the strong earnings performance, the Board decided not to recommend a cash dividend for FY2026. The company explained that cash reserves would be retained to support working capital requirements and future operational needs, taking into account prevailing economic conditions and market uncertainties. 284068

Outlook Remains Constructive

Looking ahead, Intermarket Securities intends to consolidate its market position and capitalize on elevated trading activity at the Pakistan Stock Exchange. Management remains constructive on the medium-term outlook, supported by stronger investor participation, improving trading volumes and a more stable economic environment.

However, the company recognizes that risks remain. Continued macroeconomic reforms, IMF commitments, geopolitical developments and energy prices could influence market activity and investor sentiment. 284068

Overall, FY2026 represents an important year for Intermarket Securities. Strong profitability, an expanding market share and the continuing benefits of the EFG Hermes integration have strengthened the company’s platform, while greater attention to governance, sustainability and technology provides a foundation for its next phase of growth.