Lahore: First Punjab Modaraba has disclosed its financial results for the nine-month period ending September 30, 2026, revealing a challenging fiscal environment for the company. The modaraba reported a net loss of 47.70 million rupees for the period, a significant improvement from the 126.47 million rupees loss recorded in the same period last year. The financial results were released on October 29, 2026.

The income from operations for the nine months amounted to 145.75 million rupees, down from last year's 164.86 million rupees. This decline was driven by a decrease in ijarah rentals, which fell to 9.73 million rupees, compared to 23.44 million rupees the previous year. However, there was an increase in profit from murabahah financing, which rose to 2.57 million rupees from 1.17 million rupees, and a modest improvement in diminishing musharakah financing profits, which stood at 133.46 million rupees compared to 139.03 million rupees in the previous year.

In terms of other income, First Punjab Modaraba reported 13.80 million rupees, a drop from 28.19 million rupees in the prior year. Total income for the period was 159.55 million rupees, compared to 193.05 million rupees a year earlier.

The company's expenses remained a significant burden, with administrative and general expenses amounting to 69.85 million rupees, up from 63.51 million rupees last year. Additionally, finance costs saw a decrease to 172.62 million rupees from 254.20 million rupees, a very large or significant move, indicating efforts to manage financial obligations. According to information available from the Pakistan Stock Exchange (PSX), the resulting operating loss before provisions was 82.92 million rupees, an improvement from the 124.67 million rupees loss recorded in 2025.

The modaraba benefited from a substantial reversal of provisions against various receivables, totaling 37.01 million rupees, compared to 0.91 million rupees in the previous year. This adjustment helped reduce the operating loss before management company's fees to 45.91 million rupees, compared to a loss of 123.75 million rupees recorded in the prior year.

First Punjab Modaraba did not incur any management fees during this period, leading to a loss before levy and taxation of 45.91 million rupees, a marked improvement from the previous year's loss of 123.75 million rupees. After accounting for a levy and final taxation of 1.79 million rupees, the loss before taxation was 47.70 million rupees, compared to 126.47 million rupees the previous year.

The basic and diluted loss per certificate for the nine-month period stood at 1.40 rupees, compared to 3.72 rupees in the prior year. Despite the ongoing financial challenges, the modaraba's results indicate a reduction in losses, reflecting efforts to stabilize its financial performance amidst a difficult economic environment.