Popular Islamic Modaraba Corporate Briefing Session Presentation FY2026

Key takeaways

• Popular Islamic Modaraba recorded a total income of Rs. 28.77 million for the year ended June 30, 2026, representing a 31% decline from Rs. 41.74 million in the previous year.
• Profit after taxation for FY2026 closed at Rs. 15.04 million, down 41.5% from Rs. 25.71 million, translating to an Earnings Per Certificate (EPC) of Rs. 0.75.
• Profit before taxation fell by 36.9% to Rs. 17.92 million compared to the previous year.
• Operating expenses decreased by 15% to Rs. 7.55 million down from Rs. 8.88 million through stringent cost discipline.
• Depreciation on Ijarah assets saw a significant reduction of 48.4%, coming down to Rs. 2.35 million.
• Operating profit stood at Rs. 18.38 million, representing a 35.1% reduction.
• Total assets for FY2026 stood at Rs. 230,470,941, while certificate holders' equity was recorded at Rs. 214,376,361.
• The Management Company voluntarily reduced its Modaraba Management Fee from 10% to 5% for the year.
• The board approved a cash dividend or profit distribution of Rs. 0.70 per certificate, representing 7% on a face value of Rs. 10 for the year ended June 30, 2026.
• Portfolio position as of June 30, 2026, comprised 93% Diminishing Musharakah, 5% Murabahah, and 2% Ijarah financing.
• Future business strategy involves cautiously moving forward with existing and new business engagements for new asset booking and financing, with a special focus on SMEs.
• The company aims to enhance risk management tools, appraisal and evaluation of credit proposals, and internal controls.
• Future plans include strengthening the compliance culture, particularly regarding regulatory and AML/CFT related compliances, and enhancing team capacity building.