PACRA maintains the Broker Management Rating of IGI Finex Securities Limited

IGI Finex Securities Limited ("IGI" or "the Company"), a wholly owned subsidiary of IGI Holdings Limited under the Packages Group, continues to benefit from strong institutional sponsorship that provides management with financial stability, strategic direction, and long-term operational support. The Company's diversified service offering, encompassing equity and commodity brokerage, advisory, and consultancy services, reflects management's strategic focus on broadening revenue streams and strengthening its competitive position. Recently, management further expanded the Company's physical footprint by establishing a new branch, increasing its nationwide network to seven branches, while the 10% YoY growth in clientele reflects the success of management's client acquisition, retention, and market expansion initiatives. The governance framework is supported by experienced leadership, specialized Board-level committees, and a recently reconstituted Board, while the induction of an independent director would further strengthen governance oversight. Pakistan's brokerage industry operated in a favorable environment during CY25, supported by improving macroeconomic fundamentals, easing inflation, and stronger investor participation. Management effectively aligned the Company's strategy with these evolving market dynamics, enabling IGI to strengthen its value-traded market share to ~3.30% during CY25 (CY24: ~3.10%). The Company's continued investment in technology, expansion of its branch network, and diversified product offering demonstrate management's ability to capitalize on favorable market conditions while reinforcing its competitive positioning and enhancing client engagement. Management's execution of business development initiatives translated into a ~59.8% YoY increase in operating revenue to PKR 560.877 million during CY25 (CY24: PKR 350.985 million), primarily driven by higher equity brokerage income, alongside growth in commodity brokerage and advisory services. While profit after tax improved to PKR 305.055 million (CY24: PKR 229.651 million), reflecting its ability to convert higher business volumes into stronger profitability. During 1QCY26, operating revenue continued its upward trajectory to PKR 157.716 million (1QCY25: PKR 107.614 million); however, profitability moderated due to higher operating and financial expenses together with lower non-core income, an area that management continues to monitor to preserve earnings quality and operating efficiency. Management continues to maintain a conservative financial and risk profile through the absence of proprietary trading activities, disciplined liquidity management, and a debt-free balance sheet, reflecting its sound approach to capital preservation and risk oversight. Equity strengthened to PKR 1,182 million at end-CY25 (CY24: PKR 867 million), supported by profit retention, while liquidity remained comfortable with a current ratio of 1.57x and a Liquid Capital Balance of PKR 867.933 million, providing ample financial flexibility to support future business expansion.
Going forward, the assigned rating remains dependent on management's ability to sustain business growth, further diversify revenue streams, strengthen governance through enhanced Board independence, and maintain sound risk management, liquidity, and capitalization while preserving the Company's competitive position in Pakistan's brokerage industry.

About the Entity
IGI Finex Securities Limited is a wholly owned subsidiary of IGI Holdings Limited, a PSX-listed investment holding company with strategic investments primarily in the financial sector. Approximately 72% of IGI Holdings is owned by the Packages Group through sponsors and associated entities. Packages Group is one of Pakistan's leading industrial conglomerates with diversified interests across paper and paperboard, packaging, financial services, food, personal care, and real estate. The Group's long-standing international joint ventures further strengthen its market position. The CEO, Mr. Syed Raza Hussain Rizvi, has over nineteen years of experience in management, corporate strategy, business development, mergers & acquisitions, and capital markets.