PACRA Maintains Broker Entity Ratings of Ismail Iqbal Securities (Pvt.) Limited

Ismail Iqbal Securities (Pvt.) Limited (“IISPL” or “the Company”) is a well-established participant in Pakistan’s equity brokerage landscape, offering a comprehensive suite of services encompassing brokerage, investment advisory, portfolio management, research, and margin trading. The Company caters to a diversified clientele of institutional investors, corporates, and high-net-worth individuals. During 1QFY26, IISPL’s client base expanded by 10%, reflecting its growing market presence and sustained investor confidence. The Company’s ownership remains family-concentrated, providing continuity, strategic alignment, and long-term stability supported by a defined succession framework. The Board comprises two seasoned professionals, Chief Executive Officer Mr. Ahfaz Mustafa and Non-Executive Director Mr. Muhammad Taufique. IISPL operates with a streamlined organizational structure encompassing Finance, Compliance, IT, Research, Business Development, and Equity Sales. All departmental heads report directly to the CEO, ensuring cohesive decision-making and operational agility. During 1QFY26, Pakistan’s brokerage industry experienced heightened trading momentum as the KSE-100 Index surpassed the 130,000 mark. Leveraging this favorable environment, IISPL delivered a significant improvement in financial performance. Commission income rose to PKR 84.09 million from PKR 41.03 million in the same period last year, representing a 104% increase, while net profit after tax surged to PKR 48.79 million from PKR 7.55 million, translating into an EPS of PKR 1.41 compared to PKR 0.22. This performance was underpinned by strong brokerage activity, trading gains, and disciplined cost management. As of September 2025, the Company’s proprietary investment portfolio increased to PKR 44 million from PKR 20 million, representing 9% of equity. IISPL continues to demonstrate financial strength, with current assets of PKR 1,192.89 million against current liabilities of PKR 737.86 million, resulting in a sound current ratio of 1.62:1. The Company’s equity base rose to PKR 491.08 million, supported by profit retention, while liquid capital of PKR 1,225.69 million comfortably exceeds regulatory requirements. With an adequate capital base, sound governance practices, and a steadily expanding client franchise, Ismail Iqbal Securities remains well-positioned to sustain its growth trajectory and capitalize on emerging opportunities within Pakistan’s evolving capital markets.
The assigned rating reflects IISPL’s established market position in the equity brokerage industry, supported by a diversified client base and improving financial performance. The Company’s capitalization and liquidity indicators remain sound, while market risk is contained owing to limited proprietary exposure. The governance framework is considered adequate, with experienced management and defined control processes. Sustained profitability, maintenance of capitalization levels, and continued strengthening of operational and risk management practices will remain important for the rating going forward.

About the Entity
Ismail Iqbal Securities (Pvt.) Limited (IISPL) is a private company incorporated under the Companies Ordinance, 1984 (superseded by the Companies Act, 2017) and holds a Trading Right Entitlement Certificate (TREC) of the Pakistan Stock Exchange Limited. IISPL operates through two branches in Karachi and is a family-owned business, with 65% held by CEO Mr. Ahfaz Mustafa, and 17.4% each by his sister, Ms. Ayesha Naseem, and brother, Mr. Azhar Iqbal; Mr. Muhammad Taufique holds a nominal stake. M/s Baker Tilly Mehmood Idrees Qamar, Chartered Accountants, serves as external auditor and is ranked in the 'A' category by the State Bank of Pakistan. With strong family ownership, regulatory compliance, and a diverse clientele, IISPL is well-positioned for sustainable growth in Pakistan’s capital markets.