First Elite Capital Modaraba has reported a loss after tax of Rs7.03 million for the financial year ended June 30, 2026, compared with a profit of Rs4.70 million recorded in the previous year.
According to the financial results submitted to the Pakistan Stock Exchange, the Board of Directors of Crescent Modaraba Management Company Limited, manager of First Elite Capital Modaraba, approved the financial results at a meeting held on September 25, 2026.
Revenue remains concentrated in Ijarah financing
The Modaraba generated total income of approximately Rs46.79 million during FY2026, down from Rs52.32 million in FY2025. Ijarah financing remained the largest contributor, generating Rs41.99 million, compared with Rs37.15 million a year earlier.
Income from musharakah financing stood at Rs0.92 million, while murabahah financing contributed Rs0.20 million. Return on investments amounted to Rs2.20 million. The company also recorded a Rs0.53 million reversal of provision for doubtful receivables and a Rs0.27 million fair value gain on investment properties.
Higher expenses weigh on profitability
Despite the increase in ijarah income, total expenses rose to approximately Rs52.73 million, compared with Rs45.78 million in FY2025.
Depreciation of assets leased under ijarah contracts increased to Rs31.28 million from Rs26.39 million, while administrative and general expenses reached Rs20.25 million, compared with Rs19.17 million previously.
As a result, the Modaraba recorded a loss before management company’s fee of Rs5.94 million, against a profit of Rs6.54 million in FY2025. After levy and taxation, the final loss for the year stood at Rs7.03 million, translating into a basic and diluted loss of Rs0.62 per certificate, compared with earnings of Rs0.41 per certificate in the previous year.
Assets and cash position
The financial position remained relatively stable. Total assets increased to Rs236.36 million as of June 30, 2026, from Rs232.35 million a year earlier.
Assets leased out under ijarah contracts increased to Rs122.17 million, while investment property stood at Rs65.82 million. Cash and bank balances also improved significantly, reaching Rs23.52 million, compared with Rs8.27 million at the end of FY2025.
Total liabilities increased to Rs99.54 million from Rs95.65 million, while net assets stood at Rs136.82 million, compared with Rs136.69 million previously.
Comprehensive loss narrows after other income
The statement of comprehensive income shows that the Modaraba recorded a loss of Rs7.03 million for FY2026. However, other comprehensive income of approximately Rs3.51 million reduced the overall comprehensive loss to Rs3.52 million.
The other comprehensive income included remeasurement gains on the defined benefit plan of Rs0.89 million and a Rs2.62 million change in the fair value of short-term investments.
Operating cash flow improves
One positive feature of the results was the improvement in operating cash flow. Net cash generated from operating activities rose to Rs15.13 million in FY2026 from Rs2.67 million in FY2025.
After investing activities, the net increase in cash and cash equivalents was Rs15.25 million, taking cash and cash equivalents at year-end to Rs23.52 million, compared with Rs8.27 million at the end of the previous financial year.
No dividend announced
The Board recommended no cash dividend, bonus certificates or right certificates for the year ended June 30, 2026. No other entitlement or corporate action was recommended.
The Annual Review Meeting is scheduled for October 28, 2026, at 1:30 p.m. at 182-A, Garden Block, New Garden Town, Lahore. The certificate transfer books will remain closed from October 22 to October 28, 2026, with certificate holders registered as of October 21 eligible to attend the meeting.
