Karachi: The Board of Directors of First Capital Equities Limited (FCEL) has announced a strategic shift from stock brokerage to real estate, as outlined in their Annual Report 2026, released on October 6, 2026. This decision marks a significant pivot for the company, which has surrendered its trading right entitlement certificate (TREC) of the Pakistan Stock Exchange Limited and is in the process of fulfilling the necessary formalities to complete this transition.
Currently, FCEL is in a transitional phase with no active business operations while it prepares to implement its revised business plan. The company aims to settle outstanding financial obligations with a financial institution before fully embracing its new direction in the real estate sector.
The financial summary for the year ended June 30, 2026, indicates mixed results. According to information available from the Pakistan Stock Exchange (PSX), FCEL reported a profit after tax from continuing operations of Rs. 44.62 million, a significant decline from Rs. 171.36 million in the previous year, reflecting a very large or significant move. Conversely, the loss from discontinued operations increased to Rs. 90.99 million from Rs. 0.45 million, also indicative of a very large or significant move. The company's earnings per share (EPS) from continuing operations improved to Rs. 0.316 from Rs. 0.121, while the EPS from discontinued operations was recorded at a negative Rs. 0.644, compared to a negative Rs. 0.003 in the prior year, resulting in a total EPS of negative Rs. 0.328, down from 1.21.
The company recognized an unrealized gain of Rs. 113.14 million from the remeasurement of investments at fair value, a notable increase from the Rs. 62.34 million gain recorded the previous year. This increase in unrealized gain has positively contributed to the company's overall financial performance, highlighting favorable movements in the fair value of its investments.
Despite the company's accumulated losses amounting to Rs. 936.24 million as of June 30, 2026, up from Rs. 889.88 million in 2025, the management remains optimistic. They are actively negotiating outstanding loan facilities and are hopeful of settling a loan with UBL against investment property. The board is confident that the change in principal activity, coupled with the overall expertise of the group in the real estate sector, will positively impact the company's financial performance.
While material uncertainty exists regarding FCEL's ability to continue as a going concern, the board and management assert that these conditions are temporary and anticipate a reversal in the near future. Consequently, the financial statements have been prepared on the assumption that the company will continue as a going concern.