UDL International Limited (PSX: UDLI) was formed after a successful merger of First UDL Modaraba into UDL International Limited. UDLI got listed on the Pakistan Stock Exchange in July 2024.
The company is engaged in providing legally permissible financial services and also trading in products under the compliance of law. The company also provides Islamic financial services through its services, UDL Financial services Limited. The company has also recently announced its entry into skin care market.
Pattern of Shareholding
As of June 30, 2025, UDLI has a total of 35.121 million shares outstanding which are held by 3209 shareholders. Local general public has the majority stake of 40.19 percent in the company followed by Directors, CEO, their spouse and minor children holding 27.70 percent shares.
Around 26.14 percent of UDLI’s shares are held by associated companies, undertakings and related parties and 1.13 percent by Modarabas & Mutual Funds. The remaining ownership is distributed among other categories of shareholders.
Historical Performance (2024-25)
UDLI’s total income grew in both the years under consideration. However, it posted net loss in 2024 and net profit in 2025. The detailed performance review of the period under consideration is given below.
In 2024, UDLI recorded total income of Rs.2.73 million.
This came on the back of Rs.4.47 million from investment and other income (particularly dividend income) and Rs.1.74 million worth unrealized loss recorded on the re-measurement of investments at FVTPL.
Post merger, the company’s lending business was de-merged into a wholly owned subsidiary. Operating expense clocked in at Rs.10.82 million in 2024 which largely comprised of payroll expense, listing fee and merger related expenses incurred during the year. This translated into operating loss of Rs.8.09 million in 2024.
After accounting for financial charges of Rs.0.01 million and taxation of Rs.0.55 million, UDLI posted net loss of Rs.8.65 million in 2024. This translated into loss per share of Rs.0.25 in 2024.
In 2025, UDLI’s total income grew by 2710.26 percent to clock in at Rs.76.72 million.
Investment and other income (which comprised of realized gain on listed securities through FVTPL and FVTOCI, dividend income and profit on bank balances and debt securities) grew by 1098 percent to clock in at Rs.53.55 million.
The company also registered unrealized gain worth Rs.23.17 million on the re-measurement of investments at FVTPL. Operating expense mounted by 385 percent in 2025 mainly on the back of higher payroll expense, rent, rates and taxes, depreciation expense, legal & professional charges as well as repair & maintenance charges incurred during the year.
UDLI recorded operating profit of Rs.24.24 million in 2025. This translated into OP margin of 31.60 percent in 2025. After accounting for finance cost and taxation, the company posted net profit of Rs.16.90 million in 2025. This culminated into EPS of Rs.0.48 and NP margin of 22 percent in 2025.
Recent Performance (1QFY26)
During the first quarter of the ongoing fiscal year, UDLI recorded 309.71 percent year-on-year improvement in its total income which clocked in at Rs.40.81 million.
Investment and other income progressed by 315.69 percent to clock in at Rs.34.36 million. This mainly comprised of gain on sale of listed securities at FVTPL as well as dividend income.
Unrealized gain on the re-measurement of investments at FVTPL also grew by 280.52 percent to clock in at Rs.6.45 million in 1QFY26.
Operating expense ticked up by 2 percent during the period under consideration. This resulted in operating profit of Rs.28.82 million in 1QFY26 versus operating loss of Rs.1.79 million recorded in 1QFY25. OP margin was recorded at 70.62 percent in 1QFY26.
After accounting for financial charges and tax expense, UDLI registered net profit of Rs.27.25 million in 1QFY26 versus net loss of Rs.2.52 million recorded in 1QFY25. EPS stood at Rs.0.78 in 1QFY26 versus loss per share of Rs.0.07 posted in 1QFY25. NP margin was recorded at 66.79 percent in 1QFY26.
Future Outlook
The company has already commenced the commercial production of its skin care line through outsourcing arrangements with reputed manufacturers. UDLI plans to instigate the commercial sales of its skin care products before the end of the ongoing fiscal year.
The company also intends to diversify in other market segments and is undertaking rigorous market research for the same. In the meanwhile, UDLI is in the process of obtaining external financing to expand its financial services portfolio.
All these measures are expected to widen the company’s topline and profitability.
Comments