Karachi: The First Paramount Modaraba (FPM) has reported a substantial increase in profitability for the financial year ending June 30, 2026, as outlined in its annual report dated November 6, 2026. The Modaraba, managed by Paramount Investments Limited, achieved a profit before levy and taxation of Rs. 162.78 million, marking a significant increase of 409% from the previous year's Rs. 31.98 million. Profit after taxation surged by 555% to Rs. 156.62 million, up from Rs. 23.90 million the previous year, a remarkable 6.55-fold increase in profit levels.
The financial results were largely driven by a strategic acquisition completed on April 1, 2026. FPM acquired a 60% controlling interest in an AML/CFT Solution Business through a Musharaka arrangement, a move that significantly enhanced its business operations. This acquisition contributed a bargain purchase gain of Rs. 194.40 million, playing a crucial role in the Modaraba's robust financial performance.
According to information available from the Pakistan Stock Exchange (PSX), FPM's earnings per certificate rose to Rs. 11.53, up from Rs. 1.73 in the prior year, reflecting the business's impressive growth trajectory. The acquisition, recognized as a business combination under IFRS 3, involved a comprehensive valuation process, establishing the business's fair value at Rs. 324 million.
In addition to its AML/CFT ventures, the Modaraba expanded its financing portfolio notably through increased Murabaha financing, thereby strengthening its income-generating asset base. Despite a decline in sales within its FPM Petro Services division due to reduced demand, the Modaraba remains optimistic about future prospects in this segment, anticipating improvement in business conditions in the coming months.
Further, Paramount Compliance (Private) Limited, a wholly owned subsidiary, is pursuing international expansion, exploring opportunities in South Asia, Southeast Asia, Africa, and the Middle East. These efforts are part of a broader strategy to leverage technology and regulatory expertise to drive future growth.
The Modaraba has also developed a Shariah-compliant, blockchain-based asset fractionalisation platform, which is under regulatory review before its commercial launch. This innovative platform could potentially open new market segments and revenue streams for the Modaraba.
FPM's compliance with regulatory requirements remains a priority. Following the successful completion of a right issue of its Ordinary Certificates, the Modaraba's equity now stands at Rs. 629.06 million, meeting the minimum equity requirements for deposit-taking Modarabas as per the SECP regulations issued on August 15, 2022.
The Board of Directors remains committed to strategic financial management and compliance measures to sustain FPM's competitive edge and enhance long-term value for its certificate holders amidst a challenging global economic environment.