The Hub Power Company (HUBC) has reported a sharp decline in earnings from its investment in the BYD project, with profits falling by 99.8% to just Rs. 0.5 million in March 2026.
According to data compiled by Arif Habib Limited, the company’s returns from the venture have steadily declined over recent quarters. HUBC posted profits of Rs. 222 million in March 2025, which dropped to Rs. 114 million in September 2025 and further to Rs. 54 million in December 2025 before collapsing to near-zero levels in the latest period.
The company also recorded a loss in June 2025, primarily due to higher marketing and administrative expenses linked to the project.
Despite the declining earnings trend, HUBC has continued to invest in the project, injecting a total of Rs. 6.6 billion (approximately $24 million) so far, against its total committed equity of $30 million.
Analysts suggest that the drop in profitability reflects early-stage operational costs and scaling challenges, which are common in developing ventures.
While the project initially delivered moderate returns, the latest figures indicate mounting pressure on margins as the business expands.
Market observers note that future performance will depend on the project’s ability to scale efficiently, manage costs, and generate sustainable demand.
The sharp decline highlights the risks associated with new investments, even as companies pursue long-term growth opportunities in emerging sectors like electric vehicles and energy.
