⚡ Flash Summary

First Al-Noor Modaraba (FANM) reported a net profit of Rs. 7.651 million for the quarter ended September 30, 2025, a significant turnaround from the Rs. 6.917 million loss in the same period last year. This positive shift resulted in earnings per certificate of Rs. 0.33 compared to a loss of Rs. (0.30) per certificate last year. The company’s improved performance is attributed to improving macroeconomic conditions. Management is optimistic about sustaining profitability and growth for the remainder of the financial year ending June 30, 2026.

📌 Key Takeaways

• ✅ FANM reports a net profit of Rs. 7.651 million for Q1 2025, compared to a loss of Rs. 6.917 million in Q1 2024.
• 📈 Earnings per certificate improved to Rs. 0.33, up from a loss of Rs. (0.30) in the previous year.
• 🌍 Management attributes the turnaround to improving macroeconomic conditions.
• 🏦 Cash and bank balances increased to Rs. 199.295 million from Rs. 133.917 million.
• 📊 Short term investments increased to Rs. 51.121 million from Rs. 42.357 million.
• 💪 Total assets increased to Rs. 288.351 million, compared to Rs. 275.015 million.
• 💰 Gain from trading operations increased to Rs. 10.974 million from a loss of Rs. (3.747) million.
• 📜 Modaraba certificates issued remain constant at Rs. 231 million.
• Reserves increased slightly to Rs. 78.095 million from Rs. 77.845 million.
• 📉 Accumulated losses decreased to Rs. (40.741) million from Rs. (49.828) million.
• 📊 Book value per share is improved from prior period.
• 💼 Management maintains confidence in sustainable profitability and continued growth in the remaining fiscal year ending June 30, 2026.
• 🗓️ The report is for the first quarter ended September 30, 2025.
• 🏢 Company headquarters are located in Karachi.

🎯 Investment Thesis

I recommend a HOLD position for FANM. The company has demonstrated a significant improvement in its financial performance, but it needs to sustain this positive trend over a longer period. Further monitoring of macroeconomic conditions and the company’s performance is necessary to confirm its long-term sustainability and growth potential. My price target for the next 12 months is based on steady cash flows and profitability.