Optimus Capital Management (Pvt.) Limited | BMR

RATING REPORT | Sep-26

Logo
Rating History
Dissemination Date Rating Outlook Action Rating Watch
25-Sep-26 BMR2 Stable Maintain -
25-Sep-25 BMR2 Stable Maintain -
25-Sep-24 BMR2 Stable Maintain -
25-Sep-23 BMR2 Stable Maintain -
28-Oct-22 BMR2 Stable Maintain -
About the Entity

Optimus Capital Management (Pvt.) Limited ('OCM') is a PSX-licensed brokerage firm regulated by the Securities & Exchange Commission of Pakistan (SECP). Originally incorporated in 2004 as Millennium Capital Management (Pvt.) Limited, the Company was rebranded to OCM in 2011. It operates as a wholly-owned subsidiary of Optimus Holdings (Pvt.) Limited, with ownership split between Mr. Jawad Amjad (74%) and Mr. Yasin Iqbal Kodvani (26%). OCM’s board comprises two executive directors: Mr. Jawad Amjad and Mr. Yasin Iqbal Kodvani, who bring 28 and 7 years of financial markets expertise, respectively. The firm is well-positioned as a trusted player in Pakistan’s capital markets, leveraging its regulatory compliance, experienced leadership, and strong governance framework.

Rating Rationale

Optimus Capital Management (Pvt.) Limited ('OCM' or the 'Company') primarily focuses on equity brokerage services, with advisory services also forming part of its business profile. OCM continues to operate under an evolving management structure, with management relying on internal resources to address key functional positions. Following the departure of the Head of Research, Mr. Yasin Kodvavi has been provisionally assigned to oversee research functions alongside his responsibilities as a Board Member, while day-to-day research activities remain under the CEO's oversight. While the arrangement provides continuity, the dual-role structure increases reliance on existing resources, with further strengthening of dedicated senior-level research capacity remaining important to enhance the Company's analytical capabilities. The CFO hiring process remains on hold, with the Head of Accounts continuing to oversee the function, while management has indicated a preference for an internal appointment. Mr. Sarfaraz Khan has been appointed as Head of Compliance, providing dedicated oversight of the Company's compliance function. Management has also initiated implementation of HR policies and practices covering employee performance evaluation, leave, travel, job reassignment, office timings, and personal development, while financial controls, bookkeeping processes, and payment approval workflows are being formalized. The two-member Board remains an area for further development, with the planned induction of independent oversight expected to strengthen governance, enhance checks and balances, and align the Company's governance architecture with its strategic agenda of obtaining an SMA licence. The planned formation of Board Committees and implementation of a risk assessment framework covering ageing and provisioning are expected to further strengthen the Company's governance and control architecture. Pakistan's brokerage industry remained supported by favorable market conditions during FY26, although heightened geopolitical tensions and increased market volatility in the latter part of the period highlight the importance of management's ability to sustain business volumes while strengthening operating capabilities. Against this backdrop, OCM's principal revenue source remained equity brokerage, with brokerage revenue rising significantly to ~PKR 401mln in FY26 from ~PKR 170mln in FY25. Net income increased to ~PKR 439mln from ~PKR 227mln, while profit rose to ~PKR 146mln from ~PKR 56mln, reflecting a material improvement in earnings generation. OCM does not engage in proprietary investments, thereby limiting direct exposure to market risk from proprietary positions. Capitalization also strengthened, with equity increasing to ~PKR 345mln as at Jun'26 from ~PKR 318mln, while the liquid capital balance (LCB) stood at ~PKR 335mln compared with ~PKR 83mln previously, providing enhanced financial capacity.

Key Rating Drivers

Going forward, management's ability to convert the improvement in business volumes into sustainable earnings, while concurrently strengthening dedicated senior management resources, institutionalizing governance structures, and enhancing risk and control frameworks, will remain important to the Company's management profile.

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

Optimus Capital Management (Pvt.) Limited | BMR

rating analysis

Logo
Ownership
Ownership Structure

Optimus Holdings (Pvt.) Limited serves as the parent entity of Optimus Capital Management Limited. The ownership is concentrated with Mr. Jawad Amjad (74%) and Mr. Yasin Iqbal Kodvani (26%), who are also the principal sponsors. The sponsors maintain strategic interests in associated entities, including Optimus Markets (Pvt.) Limited and Zakheera (Pvt.) Limited, reflecting a broader business footprint.


Stability

The parent company, Optimus Holdings (Pvt.) Limited, maintains a strong financial footing with a diversified investment portfolio. The Group continues to demonstrate its commitment to OCM by remaining well-positioned to extend financial and strategic support as needed.


Business Acumen

The sponsors possess strong academic credentials and extensive experience within the financial services sector, supporting informed strategic decision-making. In addition to Optimus Holdings, their diversified shareholding across entities such as Optimus Market (Pvt.) Limited and Zakheera (Pvt.) Limited reflects broader business exposure and enhances their ability to drive sustainable growth and operational depth.


Financial Strength

The sponsors demonstrate strong financial capacity and a continued willingness to support the Company through equity injections, as required, to sustain growth and support expanding operations.


Governance
Board Structure

The Board of Directors (BOD) of OCM comprises two experienced professionals: Mr. Jawad Amjad, Chief Executive Officer, and Mr. Yasin Iqbal Kodvavi, Director. Both members serve in executive capacities. The Board may be further strengthened through the induction of certified independent directors to enhance governance oversight.


Members’ Profile

Mr. Jawad Amjad, Chief Executive Officer, has over 22 years of experience across banking, brokerage, private equity, and entrepreneurship. He has co-founded brokerage and private equity firms and led major M&A and block transactions in Pakistan, including divestments in KAPCO and HUBCO. He holds an MBA from LUMS. Yasin Iqbal Kodvavi, Director, has over seven years of experience in Pakistan’s equity market, previously working at Shell Oil Company and serving as Director at Iqbal Usman Kodvavi Securities (Private) Limited. He holds a BBA from the University of Houston and has cleared CFA Level I.


Board Effectiveness

The experience of board helps in providing useful insight into the business management and guiding the management in effectively developing optimizing the organizational procedures and policy.


Financial Transparency

Head of internal audit reports directly to the internal audit committee. Riaz Ahmad, Saqib, Gohar & Company are the external auditors of the Company. The auditor is ranked as Category B auditor on the panel of SBP auditors list.


Management
Management Team

The management team is led by Mr. Jawad Amjad, Chief Executive Officer, who brings over 22 years of experience across banking, brokerage, private equity, and capital markets. The Research function is headed by Mr. Yasin Iqbal Kodvani, Director, who has over 7 years of experience in Pakistan’s equity market. Mr. Bilal Athar heads Equities and brings 30 years of diversified industry experience. The Accounts division is headed by Mr. Maqsood Wajid, who has around 10 years of experience, while Equity Settlements are overseen by Mr. M. Ovais, who possesses over 20 years of experience in brokerage operations and settlement systems.


Organizational Structure

OCM has a lean organizational structure with experienced management team and a balanced mix of professional from finance industry. The functions of the company are mainly divided into: 1) Sales. 2) Accounts, 3) Research, 4) Settlement, 5) IT 6) Compliance 7) Online Trading and 8) Admin, An Online Sales department has recently been added to realize the Company's strategy of enhancing its retail presence.


Client Servicing

The Company has a well-developed research department comprising of five analysts including the head of research. An online trading platform and mobile application is also present.


Complaint Management

The Company maintains a clearly defined complaint management system within its Management Information System (MIS). Complaints can be submitted through email or phone calls. This system is regularly updated and undergoes quarterly reviews conducted by the compliance officer.


Extent Of Automation / Integration

The Company has developed a comprehensive IT policy that covers crucial areas such as data backup and recovery, virus protection, and control environment. Furthermore, all back-office systems have been seamlessly integrated.


Continuity Of Operations

In order to ensure uninterrupted business operations. the Company has implemented a meticulously tested disaster recovery and business continuity plan. This plan includes the creation of daily, weekly, and monthly backups. Additionally, to maintain stable connectivity, the Company has established four separate connections from distinct Internet Service Providers (ISPs).


Risk Management Framework

The Company has developed an extensive risk management policy encompassing exposure limits, margins, KYC/CDD, customer orders, as well as execution and settlement processes. The settlement department is responsible for conducting thorough KYC/CDD procedures for each customer, categorizing them into varying risk levels, ranging from low to high. High-risk customers undergo enhanced due diligence through continuous monitoring. The addition of a dedicated compliance officer has improved the regulatory framework.


Regulatory Compliance

Mr. Sarfaraz Khan leads the Company's compliance department, bringing over a decade of professional expertise. This department is responsible for ensuring timely compliance with all regulatory obligations.


Business Sustainability
Business Risk

The KSE-100 Index continued its strong upward trajectory in FY26, reaching successive record highs and reflecting sustained investor confidence. The market remained supported by improving macroeconomic conditions, easing interest rates, stronger foreign exchange reserves, and continued progress under the IMF program. The decline in the policy rate during FY26 further encouraged a gradual reallocation from fixed-income instruments toward equities, supporting trading activity and market liquidity. Consequently, the brokerage industry benefited from higher trading volumes, increased investor participation, and stronger transaction-based revenues. Going forward, the sector’s growth will remain dependent on the sustainability of macroeconomic stability, political developments, interest-rate direction, and the continuation of supportive economic and market policies.


Business Profile

OCM mainly offers equity services including ready and Future dealings, whereas advisory services are also offered. The Company has started dealing in Margin Trading System (MTS) transactions. The brokerage clients are divided into three broad segments; i) Foreign ii) Institutions/Corporate and iii) Retail, Currently, OCM has a minimal presence in the retail segment; however, plans are in place to enhance its retail footprint.


Revenue and Profitability Analysis

The Company's operating revenue mainly comprises equity brokerage income. During FY26 the main source of revenue stemmed from equity brokerage, so Equity brokerage revenue stood at ~PKR 401mln. At the end of Jun '26, the net income stood at ~PKR 439mln. PAT at the end-Jun '26 stood at ~PKR 144mln.


Financial Sustainability
Credit Risk

For the assessment of client's credit worthiness, the Company has formulated detailed KYC/CDD policies. These policies entail customer identification, risk assessment, due diligence and compliance function. Exposure limits are properly assigned. An automated risk management system is in place that halts transactions for a particular client if margin falls below the allocated level.


Market Risk

The Company’s market risk exposure remains primarily linked to its investment portfolio, comprising short-term investments of ~PKR 196mln, long-term investments of ~PKR 16mln, and investments in associates of ~PKR 419mln as at end-Jun ’26. The composition of the investment portfolio exposes the Company to market fluctuations.


Liquidity Profile

At end-Jun ’26, the Company’s current assets stood at ~PKR 863mln against current liabilities of ~PKR 892mln, resulting in a current ratio of ~0.97x. This indicates a relatively tight liquidity position, with current assets marginally below the Company’s short-term obligations.


Financial Risk

At end FY26, the Liquid Capital Balance (LCB) of the Company stood at ~PKR 335mln. The Company has an equity base of ~PKR 345mln at end-Jun '26.
 
 

Sep-26

www.pacra.com

Optimus Capital Management (Pvt.) Limited | BMR

financial summary

(PKR mln)

Logo

Jun-25
12M		 Jun-25
12M		 Jun-24
12M
Audited Audited Audited
A. BALANCE SHEET
1. Finances 7 3 2
2. Investments 475 416 43
3. Other Earning Assets 13 0 0
4. Non-Earning Assets 930 472 281
5. Non-Performing Finances-net 0 0 0
Total Assets 1,425 891 326
6. Funding 376 450 4
7. Other Liabilities (Non-Interest Bearing) 517 65 4
Total Liabilities 893 515 8
Equity 492 376 318
B. INCOME STATEMENT
1. Fee Based Income 413 204 99
2. Operating Expenses (295) (170) (144)
3. Non Fee Based Income 26 23 63
Total Opearting Income/(Loss) 145 58 18
4. Financial Charges 1 (1) 0
Pre-Tax Profit 146 57 18
5. Taxes (2) (1) (0)
Profit After Tax 144 56 18
C. RATIO ANALYSIS
1. Cost Structure
Financial Charges / Total Opearting Income/(Loss) -0.8% 1.2% 0.0%
Return on Equity (ROE) 38.7% 22.2% 8.7%
2. Capital Adequacy
Equity / Total Assets (D+E+F) 46.8% 58.3% 97.4%
Free Cash Flows from Operations (FCFO) / (Financial Charges + Current Maturity of Long Term Debt + Uncovered Short Term Borrowings) 129.35 ("#,##0.00") N/A
3. Liquidity
Liquid Assets / Total Assets (D+E+F) 9.6% 7.9% -11.8%
Liquid Assets / Trade Related Liabilities 26.7% 20.7% N/A
4. Credit & Market Risk
Accounts Receivable / Short-term Borrowings + Advances from Customers + Payables to Customers 11.9% 12.7% N/A
Equity Instruments / Investments 3.4% 3.9% 10.0%

Sep-26

www.pacra.com

Optimus Capital Management (Pvt.) Limited | BMR

rating scale

Logo

Sep-26

www.pacra.com

Optimus Capital Management (Pvt.) Limited | BMR

regulatory disclosure

Logo
  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.

Sep-26

www.pacra.com