Karachi: Sindh Modaraba has released its financial results for the year ended June 30, 2026, revealing a decrease in total comprehensive income compared to the previous year. According to the data released in the report dated September 24, 2026, the company recorded a total comprehensive income of Rs. 160.65 million, down from Rs. 180.45 million in the previous year.

The company's income from Diminishing Musharaka increased to Rs. 252.65 million from Rs. 188.68 million in 2025, while income from Murabaha rose to Rs. 60.88 million from Rs. 28.65 million. However, administrative and operating expenses also saw a rise, reaching Rs. 111.08 million from Rs. 87.44 million, which contributed to the overall decline in profitability.

According to information available from the Pakistan Stock Exchange (PSX), Sindh Modaraba's investment income witnessed a significant downturn, falling to Rs. 49.83 million from Rs. 124.47 million, and other income also decreased to Rs. 1.46 million from Rs. 7.97 million. These declines were partially offset by a reversal of provision for doubtful receivables amounting to Rs. 8.49 million, up from Rs. 4.77 million in the previous year.

The profit before income tax and levy was reported at Rs. 232.07 million, slightly lower than the Rs. 236.38 million recorded in the previous year. After accounting for income tax, which increased to Rs. 69.19 million from Rs. 56.27 million, the profit for the year after taxation was Rs. 161.35 million, down from Rs. 180.11 million in 2025. The earnings per certificate also reflected a decline, with basic earnings per certificate at Rs. 3.59 compared to Rs. 4.00, and diluted earnings per certificate at Rs. 0.66 compared to Rs. 1.24.

Sindh Modaraba's cash flows from operating activities showed a net cash usage of Rs. 896.71 million, a rise from Rs. 723.68 million in the previous year. The company also engaged in significant cash flows from financing activities, generating Rs. 939.31 million, primarily due to a Rs. 1 billion subordinated fund received from its management company, classified as a related party.

The financial data reveals a strategic focus on financing activities to balance the decline in investment income and increased operating expenses. The total certificate holders' equity as of June 30, 2026, was reported at Rs. 3.09 billion, up from Rs. 1.99 billion in 2025, driven by an infusion of subordinated funds from the management company.

In the designated market category, the financial report highlights the challenges faced by Sindh Modaraba in navigating increased expenses and decreased investment returns, while also showcasing efforts to bolster financial stability through strategic financing measures.