Karachi: First Al-Noor Modaraba, managed by Al-Noor Modaraba Management (Private) Limited, has reported a challenging financial period for the nine months ending March 31, 2026, marked by significant losses and market volatility. The unaudited financial statements reveal a net loss after taxation of Rs. 14.368 million, a stark increase from the Rs. 5.451 million loss recorded during the same period last year.
According to the financial performance report, the Modaraba’s loss before taxation stood at Rs. 12.52 million, up from Rs. 2.01 million in 2025. With levies and taxation at Rs. 1.848 million, the overall loss after taxation was compounded by an additional Rs. 4.038 million in other comprehensive losses. The unappropriated loss carried forward now totals Rs. 62.00 million.
Despite these setbacks, the Modaraba’s operational performance showed signs of improvement. It reported a gross profit of Rs. 3.527 million before valuation adjustments, compared to Rs. 1.312 million in the previous year. This represents a 169% increase, driven by stronger core operations and portfolio contributions. However, adverse mark-to-market valuation adjustments led to a decline in listed equity investments by over Rs. 16 million. These valuation adjustments were primarily influenced by a transition in the Pakistan Stock Exchange (PSX) settlement mechanics, shifting from T+2 to T+1. This change disrupted market liquidity and institutional positioning.
Additionally, escalating geopolitical tensions following the US-Israel conflict with Iran, which began on February 28, 2026, further affected regional risk sentiment, resulting in widespread selling pressure across equity markets. According to information available from the Pakistan Stock Exchange (PSX), this period saw a substantial correction in the KMI All Share Index and broader PSX indices.
In terms of market outlook, since February 2026, there has been a significant surge in global oil prices due to concerns over disruptions in the Strait of Hormuz. Despite these challenges, the Pakistan equity market experienced a strong recovery following a two-week ceasefire announcement and subsequent talks in Islamabad, with benchmark indices gaining over 9% in a single session.
Looking ahead, the management of First Al-Noor Modaraba remains cautiously optimistic. They anticipate that continued diplomatic progress and stabilization in the regional environment will support further recovery in the capital markets. The Board expects the Modaraba to regain its growth trajectory, leading to improved financial performance during the remainder of the current financial year.