OLP Modaraba Reports Strong Nine-Month Earnings as Profit Reaches Rs120.5 Million
OLP Modaraba has announced its financial results for the nine-month period ended March 31, 2026, reporting a healthy profit after tax of Rs120.47 million, reflecting stable operational performance despite a challenging economic environment. The company’s earnings per certificate (EPS) improved to Rs2.65, compared with Rs3.05 in the corresponding period last year. The Board of Directors also confirmed that no cash dividend, bonus certificates, right certificates, or any other corporate action has been recommended.
The company’s total income continued to be driven primarily by diminishing Musharaka arrangements, Ijarah rentals, dividend income, and profit earned on bank balances. Although finance costs and operating expenses remained significant, OLP Modaraba successfully maintained profitability through disciplined financial management and steady revenue generation.
For the three-month quarter ended March 31, 2026, the company recorded a profit after tax of approximately Rs45.01 million, demonstrating consistent earnings during the final quarter of the reporting period. Operating income remained supported by financing and leasing activities, while management continued to control administrative expenses.
On the balance sheet, total assets stood at Rs8.18 billion as of March 31, 2026. The company maintained a solid financial position with investments spread across diminishing Musharaka, Ijarah assets, short-term investments, and cash balances. Certificate holders’ equity increased to Rs1.33 billion, reflecting the addition of current period earnings.
The cash flow statement showed that OLP Modaraba generated positive cash flows from operating activities during the nine-month period, although financing activities resulted in a net cash outflow due to repayments of redeemable capital, lease liabilities, and term finance arrangements. The company closed the period with cash and cash equivalents of approximately Rs645.3 million, providing a comfortable liquidity position.
Overall, the latest financial results highlight OLP Modaraba’s ability to remain profitable while maintaining a strong balance sheet and healthy liquidity. Despite a cautious economic environment and higher financing costs, the company continues to demonstrate resilience through its diversified Islamic financing portfolio and prudent financial management.
