First Punjab Modaraba Narrows Half-Year Loss to Rs16.4 Million

Lahore: First Punjab Modaraba has reported a significant reduction in its net loss for the half year ended June 30, 2026, according to its unaudited financial results approved by the Board of Directors on August 28, 2026.

The company recorded a net loss of Rs16.41 million during the six-month period, a substantial improvement from the Rs103.98 million loss reported in the same period of 2025. The loss per certificate also improved to Rs0.48, compared with Rs3.06 a year earlier.

Operating income declines

First Punjab Modaraba generated Rs107.27 million in total income during the first half of 2026, compared with Rs130.91 million in the corresponding period last year.

Income from operations included Rs6.78 million from Ijarah rentals, Rs327,151 from profit on Murabaha financing and Rs88.20 million from profit on diminishing Musharakah financing. The company also recorded other income of Rs11.97 million.

Despite lower overall income, the company benefited from a considerable reduction in losses and provisions compared with the previous year.

Financial position remains substantial

As of June 30, 2026, First Punjab Modaraba reported total assets of Rs1.715 billion, compared with Rs1.740 billion at the end of December 2025. Non-current assets stood at approximately Rs966.59 million, while current assets amounted to around Rs748.67 million.

The company’s issued, subscribed and paid-up capital remained unchanged at Rs340.20 million, while certificate holders’ equity stood at approximately Rs1.519 billion at the end of June 2026.

Cash position declines

The company’s cash and bank balances stood at Rs55.37 million at June 30, 2026, down from Rs81.46 million at December 31, 2025. The cash flow statement shows that net cash used in operating activities amounted to approximately Rs21.98 million during the first half.

Cash flows from investing activities also remained negative, with Rs4.11 million used during the period. Financing activities had a minimal cash impact, resulting in a net decrease of approximately Rs26.09 million in cash and cash equivalents during the six months.

No dividend announced

The Board did not recommend any cash dividend, bonus certificates, right certificates or other corporate action for the half year ended June 30, 2026.

Overall, First Punjab Modaraba’s latest results show a marked improvement in its bottom line, with the half-year loss falling sharply from the previous year’s level. However, the decline in total income and cash balances remains an area to watch as the company moves into the second half of the financial year.