PACRA Maintains Entity Ratings of Ktrade Securities Limited

KTrade Securities Limited (“KTrade” or “the Company”) primarily focuses on equity brokerage services, complemented by advisory and research-driven income streams. The Company’s client base remains predominantly retail, with ongoing efforts to increase penetration in institutional and corporate segments. Pakistan’s macro landscape showed improved stability through FY25 and 1QFY26, marked by controlled inflation, a steady exchange rate, and continued progress under IMF reforms. Real GDP grew by ~2.7% in FY25, while inflation averaged ~4.5%, enabling the SBP to reduce the policy rate to 11%. Stabilization persisted in 1QFY26, supported by contained inflation (~4.2%), modest PKR appreciation, and stronger external flows. These developments helped sustain investor confidence, increase trading activity at the PSX, and encourage expectations of upcoming IPOs. Against this backdrop, KTrade’s financial performance improved considerably. Operating revenue increased to PKR 615mln in FY25 (FY24: PKR 206mln), up ~198% YoY, driven by growth in brokerage and advisory income. Profit after tax rose to PKR 227mln (FY24: PKR 36mln), reflecting ~530% YoY growth. The equity base rose to PKR 804mln, by the inclusion of non-convertible, non-cumulative preference shares amounting to PKR 150mln, supporting an improved capital buffer. KTrade’s liquidity position remains adequate, with current assets of PKR 2,876mln against current liabilities of PKR 2,195mln. Short-term investments of PKR 162mln remain within the Company’s defined market risk limits and aligned with its risk appetite framework, ensuring financial flexibility while keeping exposure at a manageable level. The ownership profile remains stable, led by Oxford Frontier Capital Limited (~60%), followed by Ms. Mubashira Bukhari Khwaja (~20%) and Mr. Mahmood Ali Shah Bukhari (~15%). The Board comprises experienced members, including three independent directors, supported by four board-level committees that strengthen oversight and timely decision-making. Key functional areas include Research, Sales, Customer Support, Compliance, Risk Management, HR, Finance, Corporate Finance, Product Development, and Marketing. The Company recently integrated its platform with JazzCash, enabling seamless wallet-based fund transfers for clients. This initiative is expected to improve accessibility, promote digital inclusion, and help expand the retail investor base. KTrade holds a market share of ~3.5% (value traded basis), reflecting its position as a notable player within the brokerage industry. The control environment is considered adequate, with defined procedures, segregation of duties, and consistent compliance monitoring.
Going forward, maintaining diversified income streams, strengthening market presence, and ensuring stable revenue and profitability will be crucial. Simultaneously, it remains important to uphold sound internal controls, retain key management personnel, and effectively manage potential risks to sustain long-term growth.

About the Entity
KTrade Securities Limited was incorporated on April 25, 2013, as a public unlisted company. The Company operates through seven branches across major cities, including Karachi (Head Office), Lahore, Islamabad, and Multan, serving a diverse retail and institutional clientele. KTrade offers a comprehensive range of financial services, including equity brokerage, advisory, and research, supported by a strong digital presence through its mobile application “KASB KTrade.” The majority shareholding (~60%) is held by Oxford Frontier Capital Limited, primarily owned by Mr. Muhammad Ali Farid Khwaja (Chairman). Other key shareholders include Ms. Mubashira Bukhari Khwaja (~20%), Mr. Mahmood Ali Shah Bukhari (CEO, ~15%), and minor shareholders. The Company’s governance framework is overseen by an experienced Board, while day-to-day operations are managed by a qualified team focused on innovation, client servicing, and sustainable growth.