First Al-Noor Modaraba Reports Rs9.08 Million Loss in First Quarter of FY2026-27
First Al-Noor Modaraba has reported a net loss of Rs9.08 million for the first quarter ended September 30, 2026, compared to a net profit of Rs7.65 million recorded in the corresponding period last year.
According to the company’s unaudited quarterly financial statements, First Al-Noor Modaraba faced a challenging start to the financial year 2026-27, with its profitability affected by a decline in income from trading and investments, higher administrative expenses, and an unrealised loss on the remeasurement of investments.
The company’s income from trading operations declined significantly to Rs2.37 million during the quarter, compared to Rs10.97 million in the same period of the previous year. Similarly, income from investments fell to Rs3.31 million from Rs7.14 million.
As a result, total income from these activities decreased to Rs5.67 million against Rs18.27 million in the corresponding quarter last year.
Administrative and operating expenses increased to Rs9.67 million compared to Rs6.71 million in the previous year’s corresponding period. Consequently, the company recorded an operating loss of Rs3.79 million, reversing an operating profit of Rs11.74 million reported in the same quarter of the previous year.
Other income provided some support, rising to Rs2.88 million from Rs198,251. However, this improvement was insufficient to offset the decline in operating performance.
Another significant factor affecting the quarterly results was an unrealised loss of Rs7.00 million on the remeasurement of investments at fair value through profit or loss. In comparison, the company recorded an unrealised gain of Rs1.05 million in the corresponding period last year.
The company’s loss before taxation stood at Rs8.26 million, compared to a profit before taxation of Rs10.68 million in the same quarter of the previous year. After accounting for taxation of Rs815,459, the net loss reached Rs9.08 million.
Consequently, loss per certificate stood at Rs0.39, compared to earnings per certificate of Rs0.33 in the corresponding quarter last year.
Despite the quarterly loss, First Al-Noor Modaraba maintained total assets of Rs268.51 million as of September 30, 2026, compared to Rs274.58 million at June 30, 2026. Cash and bank balances increased to Rs125.55 million from Rs69.96 million over the same period.
The company’s total liabilities stood at Rs20.15 million, while certificate holders’ equity amounted to Rs247.33 million at the end of the reporting period.
First Al-Noor Modaraba is an Islamic financial institution offering investment opportunities through Shariah-compliant financial instruments. Its quarterly performance reflects the impact of changing investment valuations and lower income from trading and investment activities.
Going forward, the company’s ability to improve its investment income, manage operating expenses and navigate fluctuations in the value of its investment portfolio will remain important factors in its financial performance.
The latest results highlight a difficult first quarter for First Al-Noor Modaraba, as the institution moved from profitability to a net loss compared with the corresponding period of the previous financial year.
