First Tri-Star Modaraba Returns to Profit in FY2026 as Financial Performance Improves
Karachi, October 8, 2026: First Tri-Star Modaraba has reported a significant improvement in its financial performance for the year ended June 30, 2026, moving back into profitability after recording a loss in the previous year.
According to the financial results submitted to the Pakistan Stock Exchange, the Board of Directors of First Tri-Star Modaraba recommended no cash dividend, bonus shares, rights issue or other entitlement for the year. The results were approved at a board meeting held in Karachi on October 2, 2026. 284251
Profitability Shows Clear Improvement
The Modaraba recorded profit after taxation of Rs4.91 million during FY2026, compared with a loss of Rs15.03 million in FY2025. This represents a notable turnaround in its underlying financial performance.
The company’s profit before taxation stood at approximately Rs5.59 million, compared with a loss of Rs15.20 million in the previous year. Earnings per certificate also improved to Rs0.23, compared with a loss per certificate of Rs0.71 in FY2025. 284251
The improvement was supported by higher other income and a reduction in administrative expenses. Other income increased to approximately Rs28.92 million, compared with Rs7.71 million a year earlier, while administrative expenses declined to around Rs39.24 million from Rs56.78 million. 284251
Investment Revaluation Remains a Major Challenge
Despite the improvement in operating profitability, First Tri-Star Modaraba faced a substantial decline in the value of its investments during the year.
The company reported a net deficit of approximately Rs193.84 million on revaluation of investments classified at fair value through other comprehensive income. As a result, total comprehensive loss for the year amounted to approximately Rs188.93 million, despite the company recording a profit after taxation. 284251
This highlights an important distinction between the Modaraba’s underlying profit and changes in the market value of its investments. While its reported profit improved considerably, investment valuation movements continued to weigh heavily on overall comprehensive results.
Asset Base Contracts Sharply
The statement of financial position shows total assets of approximately Rs360.68 million as of June 30, 2026, compared with Rs586.60 million at the end of FY2025.
Long-term investments stood at around Rs342.56 million, down from approximately Rs555.98 million a year earlier. Meanwhile, cash and bank balances were approximately Rs1.05 million at the end of the financial year. 284251
Certificate holders’ equity stood at approximately Rs359.25 million, compared with Rs353.38 million in FY2025. The company’s issued, subscribed and paid-up certificate capital remained at approximately Rs211.63 million. 284251
Operating Cash Flow Under Pressure
Cash flow remained an area requiring attention. First Tri-Star Modaraba recorded net cash used in operating activities of approximately Rs13.42 million during FY2026, compared with net cash generated from operations of Rs64.02 million in FY2025.
The company, however, generated approximately Rs31.64 million from investing activities, largely supported by dividend receipts and proceeds from the disposal of fixed assets. Financing activities used approximately Rs20.17 million, mainly reflecting lease-related payments and dividend payments. 284251
As a result, cash and cash equivalents declined from approximately Rs2.99 million at the beginning of the year to Rs1.05 million at June 30, 2026. 284251
A Mixed but Improved Financial Picture
Overall, First Tri-Star Modaraba’s FY2026 results present a mixed picture. The return to profitability and improvement in earnings per certificate are positive developments, while the sharp investment revaluation loss and negative operating cash flow remain important concerns.
The company has demonstrated an improvement in its core financial performance compared with FY2025, but future results will also depend heavily on the performance and valuation of its investment portfolio.
For investors and certificate holders, the FY2026 results therefore provide both encouraging signs and areas that warrant close monitoring, particularly investment valuations, liquidity and cash generation.
The company stated that its annual report for the year ended June 30, 2026, will be transmitted separately through PUCARS within the specified time. 284251
