Arif Habib Corporation Delivers Strong FY2026 Performance, Profit Surges 49%
Arif Habib Corporation Limited (AHCL) has reported a significant improvement in its financial performance for the year ended June 30, 2026, with stronger earnings across several of its portfolio companies and major developments in its investment strategy.
According to the company’s annual report, consolidated profit after tax attributable to equity holders of the parent company increased to PKR 15.53 billion, compared with PKR 10.39 billion in the previous year. Earnings per share also rose to PKR 3.68 from PKR 2.46, reflecting the improved performance of the group’s investee companies.
The company’s unconsolidated results were even stronger. AHCL recorded a profit after tax of PKR 44.48 billion, compared with a restated PKR 23.67 billion in FY2025. Earnings per share on an unconsolidated basis increased to PKR 10.55 from PKR 5.61. The company attributed the improvement primarily to dividends as well as realized and unrealized gains on investments.
Dividend payout announced
Reflecting the year’s results, the board recommended a final cash dividend of 125%, equivalent to Rs. 1.25 per share on the company’s Re. 1 face value shares. Shareholders whose names appear on the register at the close of business on October 20, 2026, will be entitled to the dividend.
PIA acquisition marks a major strategic development
One of the most significant developments during FY2026 was AHCL’s participation in the privatisation of Pakistan International Airlines Corporation Limited (PIACL).
A consortium led by AHCL was declared the successful bidder for a 75% controlling equity stake in PIACL for PKR 135 billion. The consortium subsequently established PIA Equity Limited as a special purpose vehicle for the transaction.
The first completion of the transaction was achieved after the agreed conditions were fulfilled, with management control of PIACL transferred to PIA Equity Limited on June 29, 2026. The consortium also exercised its option to acquire the remaining 25% stake held by the Government of Pakistan, with the remaining transaction steps in progress according to the annual report.
AHCL said the investment is intended to support PIACL’s transformation through stronger governance, operational improvements, financial discipline and strategic initiatives.
Portfolio companies contribute to growth
The performance of AHCL’s diversified portfolio was another important factor behind the group’s results.
Fatima Fertilizer Company recorded a 12% increase in fertilizer offtake to 2,927 kMT, while sales revenue increased 10% to PKR 290.89 billion. Profit after tax rose 15% to PKR 45.56 billion. AHCL received PKR 1.91 billion in dividends from the company during the year.
In financial services, Arif Habib Limited posted a 20% year-on-year increase in unconsolidated profit after tax to PKR 1.18 billion. Operating revenue rose 46% to PKR 2.08 billion, supported by brokerage, investment banking and advisory activities.
The group’s other businesses also recorded notable developments. Sachal Energy Development maintained plant availability above 99%, while Javedan Corporation continued development activity at Naya Nazimabad. Aisha Steel Mills reported a substantial turnaround, with sales increasing 73% and the company moving from a previous-year loss before tax to a profit before tax of PKR 1.76 billion.
Power Cement also delivered a major improvement, with profit after tax increasing to PKR 3.78 billion from PKR 815 million. Net sales increased 15%, while gross profit rose 44%. The company also commenced operations of a 7.5 MW wind power project during the year.
Outlook for FY2027
Looking ahead, AHCL expects Pakistan’s economic environment to remain supportive, although it highlighted risks related to geopolitical developments and global energy prices.
The company cited the State Bank of Pakistan’s projection for real GDP growth of 3.5% to 4.5% in FY2027, while remittances are projected to exceed USD 44 billion. The annual report also notes expectations for lower external debt-servicing requirements and continued engagement under the IMF programme.
AHCL said its investee businesses are entering FY2027 on a steady footing, with continued strength in fertilizer and brokerage, stable performance in real estate and power, and improving prospects for cement and steel.
Overall, AHCL’s FY2026 results show a year of substantially higher profitability, stronger performance across several portfolio companies and a major expansion of its strategic investment activities through the PIA transaction. The company’s diversified portfolio and focus on long-term investments remain central to its stated strategy.
