PACRA Maintains the Broker Entity Ratings of Aba Ali Habib Securities (Pvt.) Limited

Aba Ali Habib Securities (Pvt.) Ltd. ('AAH' or the 'Company') is a prominent brokerage house offering integrated financial services within Pakistan’s capital markets. AAH operates a multi-asset class platform, offering equity brokerage, commodity trading, debt market transactions, IPO facilitation, and Margin Trading System/Margin Financing System, serving a diversified client base of institutional investors, corporates, high-net-worth individuals, retail investors, and Roshan Digital Account holders. Pakistan’s macroeconomic environment continued to improve during 1HFY26. Inflation eased, as average CPI declined to ~5.15% in 1HFY26 compared to ~7.22% in 1HFY25. Additionally, the policy rate was reduced to 10.50% in December 2025 amid contained inflationary pressures. These developments supported investor confidence, strengthened market trading activity, and improved expectations for future IPOs. Against this backdrop, AAH reported a relatively moderate financial performance. During 1HFY26, the Company reported an operating revenue of ~PKR 118mln (SPLY: ~PKR 159mln), primarily driven by core brokerage income of ~PKR 67mln (SPLY: ~PKR 59mln). Profit from MTS/MFS stood at ~PKR 40mln (SPLY: ~PKR 84mln), while dividend income was reported at ~PKR 11mln (SPLY: ~PKR 16mln). Operating expenses increased by ~55% to ~PKR 93mln (SPLY: ~PKR 60mln), reflecting higher operational costs. Resultantly, the Company reported a profit after tax of ~PKR 321mln (SPLY: ~PKR 359mln). AAH's balance sheet profile remained sound, with equity base strengthened to ~PKR 1,639mln, reflecting an increase of ~24% compared to ~PKR 1,318mln in SPLY, primarily supported by the accumulation of unappropriated profits. The Company maintains a healthy liquidity position, with current assets reported at ~PKR 2,363mln against current liabilities of ~PKR 761mln, translating into a comfortable liquidity ratio of ~3.1x. Short-term investments increased to ~PKR 1,315mln (SPLY: ~PKR 1,008mln). The investment portfolio includes ~PKR 470mln allocated for hedging purposes, ~PKR 49mln invested in TFCs/Sukuks, and ~PKR 157mln placed in strategic investments. The remaining portion represents the Company’s proprietary trading book amounting to ~PKR 639mln, which accounts for approximately ~39% of the equity base and exposes the Company to market risk. Additionally, the Company reported a Liquid Capital Balance of ~PKR 850mln, providing sufficient regulatory and operational buffers to support its trading activities. The governance and organizational framework of AAH remains stable, supported by a family-concentrated ownership with a defined succession framework. The Board comprises six members, including the Chief Executive Officer, Zahid Ali Habib. The Company operates with a streamlined organizational structure covering key functions such as Sales, Operations, Finance, Compliance, IT, and Research, with departmental heads reporting directly to the CEO to support efficient decision-making.
Looking ahead, the assigned rating will remain contingent upon the Company’s ability to maintain diversified income streams, strengthen its market presence, and sustain stable revenue and profitability trends. At the same time, upholding strong internal control systems, retaining key management personnel, and effectively managing potential risks will remain important for supporting the Company’s long-term growth.

About the Entity
Aba Ali Habib Securities (Pvt.) Limited is registered with the Securities and Exchange Commission of Pakistan under the Securities Brokers Regulations, 2016. The Company is a TREC holder and a member of the Pakistan Mercantile Exchange, operating under the trading and self-clearing category. Established in 1996 with operational roots dating back to 1970, the Company is predominantly owned by Mr. Aba Ali Habib (99.99%). The Board comprises six members, including the Chief Executive Officer, Zahid Ali Habib, who possesses extensive experience in capital markets.