Abbasi and Company (Pvt.) Limited | BMR

RATING REPORT | Jun-26

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Rating History
Dissemination Date Rating Outlook Action Rating Watch
19-Jun-26 BMR2 Stable Maintain -
21-Jun-25 BMR2 Stable Maintain -
21-Jun-24 BMR2 Stable Maintain -
23-Jun-23 BMR2 Stable Maintain -
24-Jun-22 BMR2 Stable Maintain -
About the Entity

ACPL, a SECP-regulated and PSX-recognized brokerage house, has built its market presence since 1999. Also, holds Membership of the Pakistan Mercantile Exchange (PMEX). ACPL maintains strong family stewardship, with 90.85% ownership concentrated among the Abbasi family, led by Mr. Syed Muhammad Ismail Abbasi. The Company is overseen by a three-member Board, including the CEO.

Rating Rationale

Abbasi and Company (Pvt.) Limited ("ACPL" or "the Company"), an established player in Pakistan's brokerage sector, continues to strengthen its market position through management's focus on revenue diversification, digital transformation, and prudent financial stewardship. The Company's earnings profile is supported by multiple income streams, including brokerage commissions from the Pakistan Stock Exchange (PSX) and Pakistan Mercantile Exchange (PMEX), margin financing services (MTS/MFS), returns on strategic investment portfolios, and profit-bearing bank deposits. Management's forward-looking growth agenda is reflected in its pursuit of a Separately Managed Account (SMA) license and Shariah-Compliant Brokerage License, which is expected to broaden the product suite, enhance access to new client segments, and further diversify revenues. The Company serves a diversified client franchise comprising local corporate, institutional, HNWI, retail, and foreign HNWI/retail investors. During 1HFY26, ACPL's client base expanded by 16%, reflecting management's success in client acquisition and retention initiatives, alongside growing investor confidence in the platform. The Company benefits from a stable ownership structure and established succession arrangements. While management has demonstrated effective execution capabilities and operational oversight, the governance framework would benefit from board expansion and the induction of independent directors to strengthen strategic guidance and oversight. Dedicated risk management, compliance, and disciplinary functions underscore management's commitment to sound controls, operational resilience, and regulatory compliance. The brokerage industry sustained strong momentum during 1HFY26, supported by elevated PSX trading activity and a buoyant equity market. The KSE-100 Index surpassed 170,000 points by December 2025, driven by monetary easing, improving macroeconomic indicators, and attractive market valuations. Strong investor participation continued to support sector growth. Within this operating environment, ACPL maintained a market share of approximately 0.3% on a traded-volume basis during 1HFY26. Management's execution capabilities translated into improved financial performance, with net operating revenue increasing to PKR 60.2 million (1HFY25: PKR 51.8 million), reflecting ~16% YoY growth, primarily driven by higher brokerage commissions. Gross profit rose to PKR 68.4 million (1HFY25: PKR 55.7 million), supported by stronger brokerage income and gains on the FVTPL portfolio. Despite higher administrative expenses of PKR 53.3 million (1HFY25: PKR 49.3 million), operating profit improved to PKR 15.0 million (1HFY25: PKR 6.4 million). Other income increased significantly to PKR 44.1 million (1HFY25: PKR 11.5 million), largely due to enhanced returns on bank deposits, resulting in profit after tax of PKR 53.5 million (1HFY25: PKR 14.3 million), up 274% YoY. Management continues to maintain a conservative, debt-free balance sheet, with equity strengthening to PKR 447.7 million as of December 2025 (June 2025: PKR 344.1 million), providing a strong buffer against market volatility while supporting strategic growth initiatives.

Key Rating Drivers

Going forward, the assigned rating remains dependent on management's ability to further strengthen governance practices, broaden the client franchise, and execute measured expansion initiatives. Continued diversification of revenue streams and disciplined risk management will remain critical to reducing concentration risk and enhancing business sustainability. Sustained profitability, capital preservation, and effective strategic execution by management are expected to underpin future growth and rating stability.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Abbasi and Company (Pvt.) Limited | BMR

rating analysis

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Ownership
Ownership Structure

Abbasi & Company (Pvt.) Limited ("ACPL" or " the Company") maintains strong family stewardship, with 90.85% ownership concentrated among the Abbasi family, led by Mr. Syed Muhammad Ismail Abbasi (52.59% controlling stake), Syed M. Umar Abbasi (25.31%), Ms. Yasmeen Ismail (12.90%), and Syed Awais Ali Abbasi (0.05%).


Stability

The Company's sponsors have a long-standing repute in the market while their sizeable net worth is a positive factor for the ratings.


Business Acumen

The CEO, Mr. Syed Muhammad Ismail Abbasi possesses diversified experience in capital markets. He is serving on the Board of Directors of ACPL as a Chief Executive since its incorporation. He is also serving as chairperson of the Board. He holds a Master’s Degree with distinction in Commerce from The University of Punjab and with over 35 years of experience in Pakistan’s financial markets.


Financial Strength

The sponsors have sizeable net worth and may inject capital in the Company with increasing quantum of operations. This also shows the sponsors commitment in case of a financial need arises.


Governance
Board Structure

ACPL has appointed three directors on board according all of whom are executive. The presence of Independent and Non-Executive directors would be an encouraging factor.


Members’ Profile

The board possesses the necessary skills and experience required for capital markets. The board members, on average, possess more than ~20 years of experience in the field of finance and capital markets.


Board Effectiveness

To ensure an effective control environment and compliance with reporting standards, the Company has constituted an Audit Committee, HR Committee and Executive Risk Management Committee. The Audit Committee conducts meetings at minimum of once every quarter and the internal auditor reports are presented along with the findings.


Financial Transparency

The external auditors of the Company are M/s Parker Randall – A.J.S and Company Chartered Accountants which are classified under the ‘B’ category of the State Bank of Pakistan panel of Auditors.


Management
Management Team

The management of ACPL is well qualified and experienced to manage the Company’s operations efficiently. The CFO Mr. Qamar Tariq is an IFMP member and a Certified Anti Money Laundering Professional. He is overseeing financial operations for more than 10 years.


Organizational Structure

The Company has well developed organizational structure. The Company operates through ten departments namely i) Operations ii) Equity iii) Transaction iv) Accounts & Finance v) Research vi) IT vii) Business Support and Service viii) Human Resource ix) Compliance and x) Business Development. All of the departmental heads directly report to the CEO. However, Head of Internal Audit reports to the Board Audit Committee.


Client Servicing

The Company has provided its customers with various channels, including a mobile app and online trading platform to facilitate them for execution and monitoring of their transactions. Furthermore, to further facilitate the customers a dedicated research department, trading facility, and a separate customer service department is also present.


Complaint Management

A complaint box has been placed in the office premise while complaints can also reach the Company through call, email, website and by post. A designated officer has been assigned the responsibility of handling and rectification of complains.


Extent Of Automation / Integration

Two database platforms are installed with full integration between back and front office. The system incorporates primary and secondary level protection. ACPL is in usual practice of daily and weekly backups.


Continuity Of Operations

ACPL has established a recovery plan for all essential infrastructure elements, systems, networks, and key business activities. The Company has assessed the possibility of potential disaster or emergency and has defined a range of parameters to cater these risks.


Risk Management Framework

ACPL has placed a separate resource specifically for risk management. Moreover, to ensure independent insight an independent Internal Auditor has been made part of the Risk Management Committee, thereby removing any conflict of interest and ensuring independence.


Regulatory Compliance

Compliance Department ensures regular monitoring of controls and systems, which ensures all functions are in-line with the applicable policies and procedures. Research analyst policy has also been formulated.


Business Sustainability
Business Risk

Operating Environment: During 1HFY26, Pakistan’s brokerage industry benefited from improving macroeconomic conditions, declining interest rates, and enhanced investor participation at the Pakistan Stock Exchange (PSX). Lower yields on fixed-income instruments encouraged a shift toward equities, resulting in higher market volumes and improved trading activity. Moreover, stabilizing inflation and renewed investor confidence supported positive momentum in the capital market during the period.


Business Profile

Abbasi and Company (Pvt.) Limited, “ACPL or The Company” was incorporated in 1999 as a private limited company. ACPL is a TREC certificate holder of the Pakistan Stock Exchange and a Member of Pakistan Mercantile Exchange Limited. ACPL is also registered as a research entity. The Company mainly provides the services of equity and commodity brokerage and research to highnetworth clientele.


Revenue and Profitability Analysis

The Company demonstrated strong financial performance during 1HFY26, with operating revenue increasing by approximately 16% YoY to PKR 60.2 million (1HFY25: PKR 51.8 million). The growth was primarily driven by higher brokerage income from Pakistan Stock Exchange (PSX) operations, alongside improved contribution from PMEX and Margin Trading System (MTS) activities, reflecting enhanced market participation and trading volumes. Profit after tax increased significantly to PKR 53.5 million during 1HFY26 (1HFY25: PKR 14.3 million), supported by higher operating income and gains on investments. Additionally, the Company’s liquidity profile strengthened, with cash and cash equivalents rising to PKR 404.9 million as of Dec’25 (Jun’25: PKR 232.9 million). Current liabilities also increased to PKR 308.3 million (Jun’25: PKR 214.2 million), mainly due to higher trade payables in line with increased business activity and settlement volumes.


Financial Sustainability
Credit Risk

Company has also put in place different risk mitigation measures to determine the scope of the identification and verification requirements and ongoing monitoring based on the risks posed by particular customers by setting transaction limits for higher-risk Customers.


Market Risk

ACPL has maintained a proprietary portfolio but the quantum of short-term investment is minimal; 13% of the equity at end-Dec’25. The Company has formalized a proprietary trading policy whereby limits have been defined to mitigate the risks, the compliance department will monitor the limits consistently and any breaches will be reported to the senior management.


Liquidity Profile

As of December 31, 2025, the Company reported current assets of PKR 540.8 million against current liabilities of PKR 308.3 million, resulting in a healthy current ratio of approximately 1.75x. The liquidity profile remained strong, supported by higher cash and cash equivalents and short-term investments, providing adequate coverage against short-term obligations.


Financial Risk

The Company’s equity strengthened to approximately PKR 448 million at end-Dec’25, compared to PKR 344 million at end-Jun’25, reflecting a growth of around 30%. The increase was primarily attributable to higher retained earnings and strong profitability during the period. Furthermore, the Company maintained a satisfactory capitalization profile, with a Liquid Capital Balance (LCB) of approximately PKR 150 million as of Dec’25, supporting its overall financial stability and regulatory compliance.
 
 

Jun-26

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Abbasi and Company (Pvt.) Limited | BMR

financial summary

(PKR mln)

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Mar-26
9M		 Jun-25
12M		 Jun-24
12M		 Jun-23
12M
A. BALANCE SHEET
1. Finances 0.00 0 24 0
2. Investments 0.00 72 40 49
3. Other Earning Assets 0.00 0 0 57
4. Non-Earning Assets 0.00 486 463 340
5. Non-Performing Finances-net 0.00 0 0 0
Total Assets 0.00 558 527 447
6. Funding 0.00 0 0 0
7. Other Liabilities (Non-Interest Bearing) 0.00 214 180 90
Total Liabilities 0.00 214 180 90
Equity 0.00 344 347 356
B. INCOME STATEMENT
1. Fee Based Income 0.00 93 73 34
2. Operating Expenses 0.00 (108) (99) (78)
3. Non Fee Based Income 0.00 19 23 4
Total Opearting Income/(Loss) 0.00 3 (3) (40)
4. Financial Charges 0.00 (1) (1) (0)
Pre-Tax Profit 0.00 2 (4) (40)
5. Taxes 0.00 0 (1) (1)
Profit After Tax 0.00 2 (5) (41)
C. RATIO ANALYSIS
1. Cost Structure
Financial Charges / Total Opearting Income/(Loss) N/A 34.0% -15.1% -0.1%
Return on Equity (ROE) N/A 0.7% -2.0% -11.5%
2. Capital Adequacy
Equity / Total Assets (D+E+F) N/A 61.6% 65.9% 79.8%
Free Cash Flows from Operations (FCFO) / (Financial Charges + Current Maturity of Long Term Debt + Uncovered Short Term Borrowings) N/A 194.5% -760.6% -43544.2%
3. Liquidity
Liquid Assets / Total Assets (D+E+F) N/A 54.8% 46.9% 25.6%
Liquid Assets / Trade Related Liabilities N/A 142.9% 138.5% 127.9%
4. Credit & Market Risk
Accounts Receivable / Short-term Borrowings + Advances from Customers + Payables to Customers N/A 2.5% 3.1% 4.9%
Equity Instruments / Investments N/A 94.4% 100.0% 25.5%

Jun-26

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Abbasi and Company (Pvt.) Limited | BMR

rating scale

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Jun-26

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Abbasi and Company (Pvt.) Limited | BMR

regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))
  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
  7. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

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