Karachi: The First Elite Capital Modaraba, a notable entity in the financial sector, reported a significant loss of Rs. 7.02 million for the fiscal year ending on October 26, 2026, marking a downturn from a profit of Rs. 4.70 million recorded the previous year. This substantial decline underscores the challenges faced by the company amidst fluctuating market conditions.

The company's total income decreased to Rs. 46.80 million from Rs. 52.32 million in 2025, driven by reduced returns on investments and a lack of trading income. Notably, the income from Ijarah financing rose to Rs. 41.99 million from Rs. 37.15 million, while returns from Murabaha and Musharakah financing were marginally improved, with the latter showing a presence for the first time at Rs. 0.93 million.

Despite the increase in Ijarah financing, the overall financial performance was adversely impacted by a substantial drop in fair value gains on investment properties, which plummeted to Rs. 0.27 million from Rs. 11.10 million. This decline was a contributing factor to the overall financial loss.

According to information available from the Pakistan Stock Exchange (PSX), the total expenses for the year escalated to Rs. 52.73 million from Rs. 45.77 million, exacerbated by rising depreciation costs for assets leased out under Ijarah contracts, which amounted to Rs. 31.28 million. Administrative and general expenses also increased to Rs. 20.25 million.

The report also highlighted a taxation and levy charge of Rs. 1.08 million, slightly down from the previous year's Rs. 1.19 million. Despite these challenges, the Modaraba managed to reverse provisions for doubtful receivables, contributing Rs. 0.53 million to the income.

These financial results reflect the volatile nature of the investment market and the necessary adjustments required for future stability and growth within the industry.