Karachi: Next Capital Limited (NCL) has released its un-audited condensed interim financial statements for the quarter ending September 30, 2026, revealing a challenging period for the company. The report, dated October 28, 2026, highlights a 36.4% increase in the loss after tax, amounting to Rs. 17.8 million, compared to Rs. 13.1 million in the same quarter of the previous year.
The macroeconomic environment during the quarter presented significant hurdles. Driven by ongoing tensions in the Middle East, oil prices surged, contributing to an average Consumer Price Index (CPI) inflation rate of 10.2%, up from 4.2% in the first quarter of FY26. The State Bank of Pakistan maintained the policy rate at 11.5%. Against this backdrop, the KSE-100 index fell by 5.7%, closing at 169,969 points on September 30, 2026, impacting market volumes and activity.
Financial performance indicators for NCL reflected these challenging conditions. Net operating revenue fell by 10.7% to Rs. 72.3 million, a decline from Rs. 81.0 million in the previous year. Gross brokerage income experienced a significant reduction of 19.1%, totaling Rs. 71.7 million. However, this was partially mitigated by an increase in advisory fees, which rose to Rs. 11.5 million from Rs. 4.5 million.
Operating and administrative expenses increased by 11.4% to Rs. 112.3 million, driven primarily by higher staff costs. Other income nearly doubled, reaching Rs. 30.2 million, due to increased profits on bank balances. According to information available from the Pakistan Stock Exchange (PSX), the financial sector, categorized under the designated market category, experienced volatility during the quarter, affecting companies like Next Capital Limited.
On a consolidated basis, the company's loss after tax was Rs. 22.7 million, compared to Rs. 18.9 million in the previous year. Of this loss, Rs. 20.8 million is attributable to the company's owners, equating to a loss per share of Rs. 0.36, up from Rs. 0.33. The consolidated results differ from the unconsolidated figures mainly due to the amortization of the technology platform held by the subsidiary.
The financial outcomes for the quarter illustrate the impact of broader economic pressures on Next Capital Limited, as the company navigates a complex and challenging market environment.