Karachi: AL Habib Capital Markets (Pvt.) Limited, a key player in the equity brokerage sector, has received favorable broker entity ratings from PACRA, reflecting its robust performance in Pakistan’s stock market. The company has experienced significant growth in brokerage revenue and profitability, capitalizing on the stock market’s sustained momentum, according to the Pakistan Credit Rating Agency Limited.

The positive market environment in CY25, marked by attractive market P/E multiples and easing interest rates, has bolstered investor confidence. This has led to increased trading volumes and a constructive outlook for the brokerage industry. AL Habib Capital Markets ('AHCML') reported a 36% growth in brokerage revenue during the first nine months of CY25, with profit after tax rising to approximately PKR 53 million compared to PKR 26 million in the same period of the previous year.

Despite its leveraged capital structure, with leveraging at approximately 53% as of September 2025, the company maintains a limited market risk, investing excess funds in PIBs. AHCML's equity base stood at approximately PKR 538 million at the end of September 2025. Bank Al-Habib and the Habib family, the primary sponsors, play a crucial role in the company’s governance, although the inclusion of independent board members could enhance oversight.

The company plans to upgrade its technological infrastructure for retail client onboarding and expand its geographic reach to increase market share. Looking ahead, maintaining market share, revenue, and profitability, along with strong internal controls and risk management, will be vital for AHCML's sustained success. Retention of key management personnel and continued support from sponsors will also be crucial.