Adam Securities Limited (“ASL” or “the Company”) is a Pakistan-based financial brokerage and investment services firm, offering advanced trading facilities in the capital markets. The Company was incorporated in 2001 as a private limited company and was subsequently converted into a public unlisted company in 2016. ASL operates through its head office in Karachi and is a Trading Right Entitlement Certificate (TREC) holder of the Pakistan Stock Exchange. The Company is also a member of the Pakistan Mercantile Exchange, enabling it to participate in commodity trading alongside its core brokerage activities.

ASL operates across various segments of Pakistan’s capital markets, with a primary focus on securities brokerage and investment in listed equities. The Company serves a diverse client base, including institutional, corporate, high-net-worth, and retail investors. ASL is registered with the Securities and Exchange Commission of Pakistan as an underwriter, book runner, and advisor, supporting capital market transactions and reinforcing its diversified presence in the financial services sector. Additionally, the Company acts as an Authorized Participant and Market Maker for multiple Exchange Traded Funds (ETFs), including those offered by UBL Fund Managers, Meezan Investment Management Limited, Mahana Wealth, and JS Investments Limited, and also participates in cash-settled future contracts.

The Company has a concentrated ownership structure, with the principal sponsor, Iqra Noman, holding a majority stake of 50.0%, while Noman (Director/Sponsor) holds a significant share of 48.87%. The remaining equity is distributed among other board members, including Samina Majeed (Director) with approximately 1.13%, along with Muhammad Aftab Haji Ghani (CEO/Director), Muhammad Umair (Independent Director), and Zafar Iqbal Hussain (Independent Director), each holding nominal shareholdings. The Company also has a defined succession planning framework in place to ensure continuity of leadership and a smooth transition of management responsibilities.

ASL benefits from a family-owned structure, with key sponsors holding a majority stake and demonstrating a strong commitment to the business.

The sponsor group is led by Mr. Noman, who serves as Director and heads the Company’s securities brokerage division. With over 10 years of experience in securities markets, international markets, and commodities, he oversees key functions including research, institutional business, compliance, and the back-office operations. He holds a graduation degree from the University of Karachi. Mr. Muhammad Aftab Haji Ghani, the Chief Executive Officer, brings over 28 years of banking experience. He holds a postgraduate degree in Islamic Banking and Finance from the University of Karachi and has previously served at United Bank Limited as Manager Islamic Window and Assistant Vice President from 2011 to 2020.

The Company is backed by financially strong sponsors who possess substantial net worth, reflecting their strong capacity to support the business and ensure its stability. This strong sponsor strength provides a solid financial foundation and reinforces confidence in the Company’s long-term sustainability and growth prospects.

The Board of the Company comprises five members, including the Chief Executive Officer. The Board includes two executive directors, one non-executive director, and two independent directors, thereby ensuring an appropriate balance between executive management and independent oversight in line with sound governance practices.

The Board of  ASL comprises experienced professionals with diverse expertise across banking, capital markets, finance, and audit. The Chief Executive Officer, Mr. Muhammad Aftab Haji Ghani, holds a postgraduate degree in Islamic Banking and Finance from the University of Karachi and brings over 28 years of banking experience, having previously served at United Bank Limited in senior roles including Manager Islamic Window and Assistant Vice President. Mr. Noman Abdul Majeed (Sponsor/Director), has over 10 years of experience in securities markets, international markets, and commodities, and leads the Company’s brokerage division overseeing research, institutional business, compliance, and back-office operations. Ms. Samina Majeed, (Non-Executive Director), has more than 18 years of experience in portfolio management within the Pakistan Stock Exchange Limited. Mr. Muhammad Umair (Independent Director), brings over 15 years of experience in finance, accounts, and internal audit and holds a commerce degree from the University of Karachi. Similarly, Mr. Zafar Iqbal Hussain (Independent Director), is an MBA graduate with over 15 years of professional experience in finance, accounts, and audit functions.

The Board demonstrates strong governance through its three key committees namely the Audit & Risk Management Committee, Human Resource & Remuneration Committee, and Investment Committee, each chaired by an independent director and comprising experienced members. These committees provide effective oversight of financial reporting, risk management, human resource policies, and investment decisions, highlighting a strong governance framework and strong board supervision.

The Company maintains a strong commitment to financial transparency, supported by the appointment of Baker Tilly as its external auditor. Baker Tilly is an A-category rated audit firm on the State Bank of Pakistan (SBP) panel, reflecting high standards of audit quality and regulatory compliance. This ensures that the Company’s financial statements are independently reviewed and presented fairly in accordance with applicable accounting and regulatory requirements.

The Company operates under a structured framework. The Chief Executive Officer (CEO) manages overall operations, while the Head of Internal Audit and Head of Compliance report directly to the Board to ensure independent control functions. Key departments under the CEO include Settlement & CDC, Finance (CFO), Information Technology, Research, Sales, and Risk Management & Operations. The Finance function oversees Accounts & Finance activities. The Research and Sales teams are supported by dedicated operational staff, including analysts, traders, and executives. This structure ensures clear reporting lines, operational efficiency, and strong governance.

The senior management comprises a team of experienced professionals across key functional areas, reflecting a strong operational framework. Mr. Muhammad Aftab Haji Ghani, Chief Executive Officer, brings over 28 years of experience and reports to the Board of Directors. Mr. Muhammad Rizwan, Chief Financial Officer, possesses around 20 years of relevant experience and also serves as Head of Compliance, with reporting lines to both the CEO and the Board. Mr. Rehan Sultan, Chief Operating Officer, has approximately 30 years of experience, while Mr. Muhammad Riaz, Internal Auditor, brings 10–20 years of experience and reports to the Board. Mr. Muhammad Saeed Khalid, Head of Research, has around 15 years of experience. Additionally, Mr. Muhammad Sarfraz, Head of IT, and Mr. Muhammad Ayaz Kamal, Head of Sales, each possess 10–20 years of relevant experience. All functional heads report to the Chief Executive Officer, ensuring a streamlined reporting structure and effective management oversight.

To ensure structured decision-making, ASL has established multiple management committees, including the Executive Committee, IT Steering Committee and the Compliance Committee. These committees promote cross-functional coordination and effective execution of strategic objectives, reinforcing overall management effectiveness.

ASL maintains a strong control environment supported by automated front-end and back-end systems that ensure accuracy, transparency, and real-time monitoring of transactions. The Risk Management and Compliance departments closely oversee trading activities, client exposures, and regulatory compliance. In addition, the internal audit function operates independently, ensuring continuous evaluation of internal controls and adherence to SECP and PSX regulations. This framework collectively strengthens operational integrity and risk management across all business functions.

The performance of the brokerage sector remains closely linked to the macroeconomic indicators of the country. The sector continues to exhibit inherently high business risk due to its cyclical nature, fragmented structure, intense competition, and stringent regulatory oversight. During 9MFY26 (up to Mar’26), the KSE-100 Index demonstrated overall strong performance with periods of sharp volatility. The market experienced significant intra-period fluctuations, with the index trading in the range of approximately 145,000 to 155,000 levels during March 2026 trading sessions, reflecting intermittent correction phases following earlier gains. Overall, 9MFY26 performance remained positive, supported by sustained investor participation and improving liquidity conditions, although periodic corrections were observed due to profit-taking activity, geopolitical tensions, and global commodity price volatility. Market performance during 9MFY26 was supported by easing monetary expectations, relative exchange rate stability, and continued progress under Pakistan’s IMF-supported reform framework. Improvement in external account indicators, particularly remittance inflows, contributed to stabilizing investor sentiment. However, market volatility persisted due to inflationary pressures, fiscal consolidation measures, and global oil price fluctuations, which intermittently impacted risk appetite. The IPO market remained active during 9MFY26, with continued equity capital raising activity through IPOs and rights issues across multiple sectors. While issuance activity reflected improved investor participation compared to the prior year, the overall primary market remained selective, with listings primarily concentrated in financial services, energy, and corporate sectors. This indicates a gradual recovery in capital market depth, supported by improving liquidity conditions. Going forward, IPO activity is expected to remain stable to moderately strong for the remainder of FY26, supported by improving macroeconomic stability, relative attractiveness of equity valuations, and continued investor participation in Pakistan’s capital markets. However, key downside risks remain, including exchange rate volatility, inflationary pressures, and political uncertainty, which may impact market sentiment. Despite these risks, the improving macroeconomic outlook and external stability are expected to provide continued support to equity market activity over the near to medium term.

ASL commands approximately 11% market share on a volume basis within Pakistan's brokerage industry, establishing itself as a significant and steadily growing force in the country's capital markets landscape. This position reflects the Company's sustained commitment to expanding its footprint and delivering value across a competitive sector. Central to this growth trajectory is ASL's continued investment in its digital trading platform, an initiative that not only broadens accessibility for existing clients but also attracts a new generation of investors seeking seamless, technology-driven market participation.

Total revenue for 9MFY26 stood at PKR 554.9 million, reflecting a strong increase from PKR 423.0 million in the comparable period last year, primarily driven by higher capital gains and brokerage income. Profit after tax reached PKR 328.3 million, while profit before tax stood at PKR 331.6 million, indicating solid profitability despite market volatility. Administrative and finance costs aggregated to PKR 251.1 million, translating into a cost-to-income ratio of ~45%, showing improved operational efficiency. Brokerage income increased to PKR 169.7 million (9MFY25: PKR 121.4 million), reflecting heightened trading activity and improved client flows. Capital gains contributed PKR 374.2 million, remaining the dominant revenue driver. Overall profitability improved on a YoY basis due to stronger market performance and higher trading volumes. Return indicators remain strong, with ROAE and ROAA (annualized) estimated at strong levels, reflecting efficient utilization of equity and assets.

For 9MFY26, ASL's total administrative expenses amounted to Rs. 225.75 million, reflecting a 57% increase over the same period last year. The cost base is primarily driven by Staff Salaries & Allowances (Rs. 93.98 million) and Service & Transaction Charges (Rs. 91.41 million), which together account for approximately 82% of total administrative expenses, both directly correlated with the Company's growing business volumes. Finance costs stood at Rs. 25.32 million, showing a healthy decline from Rs. 29.26 million in Mar'25, reflecting improved liquidity management. While the overall cost structure has expanded, this growth is a function of scaling operations rather than inefficiency, as evidenced by the Company's profit after taxation of Rs. 328.29 million for Mar'26, demonstrating that revenue growth continues to outpace cost escalation and affirming ASL's commitment to sustainable and profitable expansion.

Going forward, the Company plans to expand its client base through digital onboarding initiatives, particularly by leveraging the Central Depository Company of Pakistan platform Asaan Connect, which is expected to streamline account opening and enhance customer acquisition. In parallel, the Company intends to further strengthen its investment portfolio by increasing exposure to ready future transactions and expanding allocations toward mutual funds, aiming to optimize returns while maintaining a balanced risk profile.

As of Mar'26, trade receivables increased significantly to PKR 243.3 million (Mar’25: PKR 70.0 million). This rise is primarily due to clearing house receivables of PKR 193.5 million, representing settlement balances linked to trading activity. These exposures are considered low-risk given their association with regulated institutional counterparties. Client receivables stood at PKR 49.8 million, which remain manageable relative to the Company’s equity base.

Short-term investments stood at PKR 1,468.6 million as at Mar’26, comprising: Listed equity securities: PKR 755.4 million Investment in Mutual Funds: PKR 254.6 million Investments in MF & MTS: PKR 458.6 million A significant portion of equity exposure is linked to ready future transactions, which are typically hedged, thereby reducing net directional market risk. Additionally, mutual fund investments are largely tilted toward fixed-income instruments, providing stability. Margin financing exposure remains limited, indicating low leverage-driven risk. Overall, despite sizeable exposure to equities, the risk is mitigated through hedging and asset allocation, and the market risk profile is assessed as moderate to contained.

The Company maintains a strong liquidity profile. As of Mar'26, liquid assets, including cash, bank balances and short term investments, amounted to approximately PKR 1,689.3 million, excluding certain deposits, while total liquid resources including deposits exceed PKR 2.1 billion. Cash and bank balances increased to PKR 220.7 million compared to PKR 140.2 million in the corresponding period last year. The current ratio improved to approximately 6.0x based on current assets of PKR 2.42 billion versus current liabilities of PKR 404.2 million, reflecting significant liquidity headroom. Overall, liquidity remains a key rating strength, supported by no reliance on external borrowings and strong asset coverage.

The Company’s equity base strengthened materially to PKR 2,068.7 million as at Mar’26, compared to PKR 1,598.2 million in Mar’25, driven primarily by retained earnings of PKR 1,065.8 million. Paid-up capital remains at PKR 1,000.0 million, indicating strong internal capital generation. The Company’s Liquid Capital Balance (LCB) stood at PKR 1,324 million as at Mar’26, reflecting a comfortable cushion above regulatory requirements and supporting its overall financial strength. Leverage remains low and conservative, with total liabilities at PKR 404.2 million, translating into a leverage ratio of approximately 0.20x, significantly improved from last year. Notably, short-term running finance has been fully repaid, with a nil balance compared to PKR 313.7 million in Mar’25, reflecting prudent financial management. The revaluation surplus remains minimal at PKR 2.9 million and does not materially impact capital quality.