First Equity Modaraba Reports Annual Financial Results for the Year Ended June 30, 2026
First Equity Modaraba has announced its annual financial results for the fiscal year ended June 30, 2026, reporting a loss for the year on an unconsolidated basis, while its consolidated financial statements show a return to profitability.
According to the financial statements submitted to the Pakistan Stock Exchange (PSX), the company’s results reflect a challenging financial year, with significant impairment losses and operating expenses affecting its unconsolidated performance.
Unconsolidated Results Show Annual Loss
For the year ended June 30, 2026, First Equity Modaraba recorded revenue of approximately Rs42.80 million, compared with Rs21.49 million in the previous year. However, higher operating expenses and financial charges, along with impairment losses, weighed on its results.
The company reported an operating loss of approximately Rs43.99 million. After accounting for other income, financial items, taxes and other charges, the modaraba recorded a loss after tax of approximately Rs11.83 million, compared with a profit of around Rs46.01 million in the previous year.
The results highlight the impact of higher costs and impairment-related charges on the modaraba’s standalone financial performance.
Consolidated Financial Performance Improves
In contrast, First Equity Modaraba’s consolidated financial statements reported a profit after tax of approximately Rs523.55 million for FY2026, compared with a loss of around Rs163.64 million in the previous year.
Consolidated profit before taxation and other levies stood at approximately Rs426.58 million. The reported improvement in consolidated earnings represents a significant turnaround compared with the previous year.
The difference between the unconsolidated and consolidated results highlights the importance of reviewing both sets of financial statements when assessing the group’s overall performance.
No Cash Dividend Announced
The company also informed the Pakistan Stock Exchange that its board had decided not to announce a cash dividend, bonus shares or a right issue for the year ended June 30, 2026.
The annual review meeting of certificate holders is scheduled for December 22, 2026, according to the announcement.
The certificate transfer books will remain closed from December 16 to December 22, 2026, with both dates inclusive. The announcement also states that the last date for payment of cash dividends is not applicable, as no dividend has been declared.
Outlook for Investors
First Equity Modaraba’s FY2026 results present a mixed picture. While the unconsolidated statements show a loss, the consolidated accounts indicate a substantial recovery in group profitability.
Investors will likely focus on the sustainability of the consolidated earnings, the factors behind the significant difference between standalone and consolidated results, and the company’s ability to improve its underlying financial performance.
The absence of a dividend means certificate holders will not receive a cash distribution for the year. Future performance, earnings quality and the company’s financial position will therefore remain important considerations for investors.
Conclusion
First Equity Modaraba’s annual results for FY2026 reflect contrasting performance across its unconsolidated and consolidated accounts. The consolidated profit of approximately Rs523.55 million marks a notable improvement over the previous year, while the standalone loss highlights continuing challenges. Investors should review the complete financial statements and accompanying notes before drawing conclusions about the company’s future prospects.
