Karachi: In a detailed corporate briefing session for the fiscal year 2025-26, OLP Modaraba revealed a decline in its financial performance, reflecting significant strategic shifts and market conditions. The report, dated October 27, 2026, highlighted a profit after tax of Rs. 160.7 million, marking a significant move with a 7.7% decrease compared to the previous year. Earnings per share (EPS) consequently fell to Rs. 3.54 from Rs. 3.84.

The company maintained a cash dividend of 25%, equivalent to Rs. 2.50 per certificate, consistent with the previous year's distribution. Profit before levy and tax dropped by 3.8% to Rs. 242.9 million. However, the certificate holders' equity showed a positive trajectory, increasing by 3.6% to Rs. 1,374 million.

Diminishing Musharakah, a key financing component, rose by 3.8% to Rs. 7,132 million, indicating a continued strategic focus on this area. However, disbursements faced a significant 10.3% decline, totaling Rs. 3,114 million, attributed to selective business undertakings driven by prevailing economic conditions. Total assets also saw a contraction, decreasing by 4.7% to Rs. 8,457 million.

According to information available from the Pakistan Stock Exchange (PSX), the company's gross revenue fell sharply by 21.1% to Rs. 1,491 million, impacted by lower Karachi Interbank Offered Rate (KIBOR) during the year. Financial charges saw a very large move with a 26.7% reduction, aligning with decreased benchmark rates and effective liquidity management.

The gross margin improved by 6.3% to Rs. 561 million, primarily due to revenue net of charges and Ijarah depreciation. Administrative and operating expenses increased moderately by 2.3% to Rs. 281 million, which was maintained below inflation levels.

The VIS ratings for OLP Modaraba were maintained at AA / A1+, reflecting stability despite the financial challenges faced during the year.