FPJM

First Punjab Modaraba

By PSX Investors Zone · Updated October 23, 2026

First Punjab Modaraba company profile

First Punjab Modaraba (PSX: FPJM) is a Pakistani Islamic financial institution incorporated in 1991 and managed by Punjab Modaraba Services (Private) Limited. Its principal activities include Ijarah leasing, Musharakah and Murabaha financing, equity investments and related business conducted under Islamic financial principles. The modaraba was listed as Shariah-compliant in the PSX-KMI All Share Islamic Index recomposition effective June 5, 2026. Financial performance remains an important consideration: it reported a net loss of Rs. 172.92 million for the year ended December 31, 2025 and a further net loss of Rs. 16.41 million for the half year ended June 30, 2026. Investors should review its financing portfolio, credit risk, funding costs, cash flows and latest regulatory disclosures before assessing its certificates.

First Punjab Modaraba (PSX: FPJM) is a Pakistan Stock Exchange-listed Islamic financial institution formed under Pakistan's modaraba framework. Incorporated on October 19, 1991, it is managed by Punjab Modaraba Services (Private) Limited. Its principal activities include Ijarah, Musharakah and Murabaha financing, equity investment and related business conducted in accordance with Islamic financial principles.

The modaraba provides financing solutions to businesses and customers through Islamic financial structures. Its performance depends on the quality of its financing portfolio, recovery of rentals and financing receivables, funding costs, provisions, operating expenses and the overall financial condition of its customers.

Business Activities

First Punjab Modaraba operates through several Islamic financial arrangements:

  • Ijarah: Asset leasing under agreed rental and usage terms.
  • Musharakah: A partnership-based financing structure in which parties participate under agreed terms and share risk according to the applicable arrangement.
  • Murabaha: A cost-plus sale arrangement in which the cost and agreed profit are disclosed.
  • Equity investment: Investment activity subject to the applicable regulatory and Shariah requirements.

The relative contribution of these activities can change over time. Investors should refer to the latest financial statements to assess the size, performance and risk exposure of each portfolio.

Financial Performance

First Punjab Modaraba's financial reporting year ends on December 31. Its latest available interim results cover the six months ended June 30, 2026.

Financial metricYear ended Dec. 31, 2025Half-year ended June 30, 2026
Net resultLoss of Rs. 172.918 millionLoss of Rs. 16.409 million
Loss per certificateRs. 5.08Rs. 0.48
Total assets at period-endRs. 1.740 billionRs. 1.715 billion
Cash and bank balances at period-endRs. 81.461 millionRs. 55.366 million

The annual and interim figures cover different reporting periods and should not be compared as though they were equivalent full-year results.

For the half year ended June 30, 2026, total income was Rs. 107.265 million, compared with Rs. 130.915 million for the corresponding period of 2025. Income from operations was Rs. 95.300 million, while finance costs were Rs. 111.253 million. The modaraba reported a net loss of Rs. 16.409 million for the period, an improvement on the loss of Rs. 103.977 million in the corresponding prior-year half.

The smaller loss is a change in reported performance, but it does not by itself establish a sustained recovery. Investors should assess income generation, funding costs, recovery of financing receivables, provisions, cash flow and the effect of any restructuring or subordinated funding arrangements disclosed in the accounts.

Primary financial sources: PSX company page and the half-yearly report for June 30, 2026.

Shariah Compliance Status

First Punjab Modaraba was listed as Shariah-compliant in the PSX-KMI All Share Islamic Index recomposition announced on May 29, 2026, effective June 5, 2026. The assessment used accounts dated December 31, 2025.

For Islamic financial institutions, the published screening table uses specific measures, including illiquid assets and net liquid assets, rather than relying exclusively on the conventional debt, investment and income ratios applied to other businesses.

The recomposition reports the following measures for FPJM:

Screening measureReported result
Illiquid assets / total assets58.86%
Net liquid assets per certificate measureRs. 22.07
Share price used in the screening tableRs. 4.60
Final Shariah statusCompliant

These figures are from the stated review and are not a guarantee of future eligibility. Investors should verify the next official screening publication because Shariah status can change as financial information and screening requirements are updated.

PSX announced a change to the KMI screening methodology in 2026, reducing the interest-bearing debt-to-total-assets threshold from 37% to 33%, with implementation from the November 2026 recomposition based on June 2026 annual or half-yearly accounts. The June 2026 review's specialist measures for Islamic financial institutions should not be confused with a newly calculated screening outcome under that revised threshold.

Shariah compliance does not guarantee profitability, capital preservation, valuation attractiveness or liquidity.

Dividend and Corporate Actions

For the half year ended June 30, 2026, the management company's Board recommended no cash dividend, bonus certificates or right certificates.

Investors should check subsequent official announcements for any new distribution, corporate action or material development. Historical distributions, if any, should not be interpreted as a current entitlement.

Key Risks and Fundamental Analysis

First Punjab Modaraba's reported losses make it important to examine its financial condition in detail. Key areas for research include:

  1. Financing portfolio quality: Review overdue receivables, defaults, recoveries and provisions against Ijarah, Musharakah and Murabaha arrangements.
  2. Funding costs: Compare finance costs with income generated from financing activities.
  3. Cash flow: Assess whether the modaraba generates sufficient operating cash to meet its obligations.
  4. Asset quality: Review the recoverability and valuation of financing assets and investments.
  5. Capital and funding arrangements: Read the notes on subordinated funds, liabilities and any support arrangements.
  6. Earnings sustainability: Determine whether improvements in interim losses are supported by recurring income and stronger recoveries.
  7. Market valuation and liquidity: Compare the certificate price with reported financial information while considering trading volume and other risks.
  8. Shariah status: Confirm inclusion in the latest PSX-KMI All Share Islamic Index review.

These are research considerations, not a recommendation to buy or sell FPJM certificates.

Frequently Asked Questions

What is the PSX symbol of First Punjab Modaraba?

Its Pakistan Stock Exchange symbol is FPJM.

What does First Punjab Modaraba do?

It provides Islamic financing through Ijarah, Musharakah and Murabaha arrangements, along with equity investment and related activities.

Is First Punjab Modaraba Shariah-compliant?

It was listed as compliant in the PSX-KMI All Share Islamic Index recomposition effective June 5, 2026, based on December 31, 2025 accounts. Investors should check the latest official review for any subsequent change.

What were its latest reported results?

For the half year ended June 30, 2026, First Punjab Modaraba reported a net loss of Rs. 16.409 million and a loss per certificate of Rs. 0.48.

Did it announce a dividend for the June 2026 half year?

No cash dividend, bonus certificates or right certificates were recommended for that half-year period.

Does Shariah compliance mean FPJM is risk-free?

No. Shariah screening does not eliminate credit, funding, operational, market or liquidity risks. Investors should review the financial statements and regulatory disclosures before making decisions.

Official Sources

This profile is for company research and investor education. Verify the latest official financial statements, Shariah-screening status and company announcements before making an investment decision.

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This profile is for educational purposes and is not a recommendation to buy or sell any security.

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