HUB Power Company Limited (PSX: HUBC) posted a profit after tax (PAT) of Rs. 48.6 billion for FY2026, marking an 8% increase from Rs. 46 billion recorded in the previous fiscal year.
The company’s earnings received support from stronger contributions from its associates, including Prime, which has a stake in BYD’s Pakistan operations.
HUBC delivered a particularly strong performance in the final quarter. Profit after tax climbed 39% year-on-year (YoY) to Rs. 16.5 billion in 4QFY26, while quarterly earnings increased 53% compared with the previous quarter.
The company’s share of profit from associates reached Rs. 13 billion during the quarter, up from Rs. 11 billion a year earlier. According to Arif Habib Limited (AHL), the increase was primarily supported by higher contributions from BYD/Prime.
HUBC’s quarterly gross profit increased 22%, helped by a higher period-weighting factor for Lalpir Energy Limited (LEL).
Earnings were also supported by a significantly lower effective tax rate. The company’s effective tax rate fell to 1.4% in 4QFY26 from 18.8% in the same quarter last year, as a larger portion of its tax liability had already been recognised in the preceding quarter.
HUBC declared a cash dividend of Rs. 5 per share for the quarter. Dividend income rose to Rs. 0.55 billion from Rs. 0.42 billion in 4QFY25.
Consolidated revenue increased 10% YoY to Rs. 20.5 billion during the quarter, mainly due to improved plant utilisation.
Several power plants recorded higher utilisation during the period. NEL’s utilisation rose to 17% from 3% a year earlier, while CHPGC operated at 29% following earlier disruptions and seasonal demand changes.
TEL and TNPL maintained relatively high utilisation rates of 83% and 79%, respectively. LEL also recorded a notable improvement, with utilisation rising to 75% from 52% in the corresponding quarter of FY25.
HUBC’s finance costs declined 18% YoY, benefiting from continued repayments of loans linked to its CPEC investments as well as lower interest rates.
The company currently trades at 5.2 times AHL’s estimated FY2027 earnings.
