Arif Habib Limited (PSX: AHL), one of Pakistan’s largest brokerage and investment banking firms, published its results for the first quarter of its 2027 financial year (July to September 2026). The directors’ report is dated 16 October 2026. Figures below are for the company on its own (unconsolidated) unless marked as group figures.
The headline: a profit after tax of Rs 272.8 M, or Rs 4.18 a share, up 10.7% from Rs 246.4 M (Rs 3.77) a year earlier. Group profit was Rs 268.9 M (Rs 4.12 a share). No interim dividend was announced; the company paid Rs 12.50 a share for the 2026 financial year during the quarter.
The quarter in numbers
| Rs M | Jul to Sep 2026 | Jul to Sep 2025 | Change |
|---|---|---|---|
| Equity brokerage | 334.7 | 328.9 | +1.7% |
| Inter-bank brokerage | 59.1 | 42.0 | +40.8% |
| Advisory and consultancy fees | 153.6 | 2.6 | very large rise |
| Markup on margin financing and debt securities | 30.9 | 15.0 | +106% |
| Dividend income | 2.6 | 35.3 | −92.5% |
| Operating revenue | 580.9 | 423.8 | +37.1% |
| Gains on own investments (realised and unrealised) | 56.1 | 197.6 | −71.6% |
| Administrative and operating expenses | (339.4) | (355.0) | −4.4% |
| Other operating income | 103.8 | 59.3 | +75.1% |
| Finance costs | (42.7) | (27.2) | +56.7% |
| Profit before tax | 358.4 | 298.0 | +20.3% |
| Tax and levies (effective rate 23.9% against 17.3%) | (86.0) | (52.1) | +65% |
| Profit after tax | 272.8 | 246.4 | +10.7% |
| Earnings per share, Rs | 4.18 | 3.77 | +10.9% |
What drove the result
Investment banking had a big quarter. Advisory and consultancy fees rose to Rs 153.6 M from Rs 2.6 M. The directors point to activity in IPOs, M&A and delistings; during the quarter AHL handled the IPO of Select Technologies, buy-back advisory for Liberty Daharki Power, and sukuk advice for Gillette Pakistan and Select Technologies. Fees like these depend on deals closing, so they can vary a lot from quarter to quarter.
Brokerage held up in a quieter market. Average daily traded value on the PSX fell 24% from a year earlier and the KSE-100 dropped 5.7% in the quarter, yet AHL’s equity brokerage revenue rose 1.7%. The directors credit a higher market share, more retail clients and better digital platforms. Inter-bank brokerage rose 41%. Together, brokerage and investment banking revenue was Rs 547.4 M, up 47%.
Trading gains fell sharply. Gains on the firm’s own investments, realised and unrealised, were Rs 56.1 M against Rs 197.6 M a year earlier, and dividend income fell to Rs 2.6 M from Rs 35.3 M. This is the main reason total income rose only 2.5% even though operating revenue rose 37%.
Costs were lower, tax was higher. Expenses fell 4.4%, helped by an 18% drop in salaries and remuneration and lower commission expenses. Other operating income rose 75% to Rs 103.8 M. Finance costs rose 57% to Rs 42.7 M, which the company links to higher trading activity. Pre-tax profit rose 20%, but a higher effective tax rate, about 24% against 17%, cut the after-tax growth to 11%.
The balance sheet
- Equity lower after the dividend. Shareholders’ equity fell to Rs 1.91 bn from Rs 2.45 bn in June, because the Rs 817 M dividend for 2026 (Rs 12.50 a share) was paid in the quarter. Book value per share is Rs 29.16 against Rs 37.49.
- Large cash and payables. Total assets were Rs 9.10 bn, with cash and bank balances of Rs 4.89 bn and short-term investments of Rs 2.78 bn. On the other side, trade and other payables were Rs 4.88 bn and short-term borrowing rose to Rs 1.91 bn from Rs 1.55 bn.
- Margin financing down. Money lent to clients against shares fell to Rs 265 M from Rs 475 M in June, although markup earned on it rose 48% from a year earlier.
Valuation snapshot
At the 28 October close of Rs 104.90:
| Measure | Value |
|---|---|
| Earnings per share, last 12 months (October 2025 to September 2026) | about Rs 18.4 |
| Price to earnings | about 5.7 times |
| Book value per share | Rs 29.16, so price to book of about 3.6 |
| Dividend for the 2026 financial year | Rs 12.50 a share, a yield of about 11.9% at today’s price |
| Market value (65.3 million shares) | about Rs 6.9 bn |
| Share price, last 52 weeks | low Rs 79.31, high Rs 135.79 |
The stock trades well above book value but at under 6 times earnings, a sign of how much profit the firm makes on a small equity base after paying out most of its earnings. It is about 23% below its 52-week high, and has slipped from about Rs 110 since the results.
What to watch next
- Market activity. Brokerage revenue still depends on traded value, which fell this quarter. A pickup in volumes would help directly.
- The deal pipeline. The company expects more IPOs, M&A, debt listings, sukuk and rights issues. Advisory fees of Rs 154 M a quarter would be hard to repeat without a steady flow of deals.
- Proprietary gains. Gains on the firm’s own book swing with the market; last year’s first quarter had much more of them.
- Dividend. The 2026 payout was Rs 12.50, about 69% of that year’s earnings of Rs 18.01 a share.
The bottom line
Arif Habib Limited grew profit 11% in a quarter when the market fell and trading volumes dropped. A jump in advisory fees, steady brokerage and lower costs more than made up for much smaller gains on its own investments and a higher tax rate. The quarter was below the very strong April to June 2026 period, but above the same quarter last year.
You can follow AHL’s price, Pulse Score, results calendar and off-market trades in the Market Pulse Hub dashboard under PSX.
Bilal, Market Pulse Hub
Source: Arif Habib Limited, quarterly report for the quarter ended 30 September 2026 (directors’ report and unaudited unconsolidated and consolidated condensed interim financial statements). April to June 2026 profit is derived from the 2026 annual result less the first three quarters. Market statistics as stated in the directors’ report. Prices from the PSX data portal. Twelve-month, per-share and valuation figures are our calculations. This article is for education and information only and is not investment advice.