Hub Power Company Limited (PSX: HUBC) reported a profit after tax (PAT) of Rs. 48.6 billion for fiscal year 2026, up 8% from Rs. 46 billion recorded a year earlier.
The company’s earnings were supported by stronger contributions from its associates, particularly BYD/Prime, according to a result review by Arif Habib Limited (AHL).
HUBC’s profit for the fourth quarter of FY26 increased to Rs. 16.5 billion, marking a 39% year-on-year (YoY) and 53% quarter-on-quarter (QoQ) increase.
The company’s share of profit from associates reached Rs. 13 billion during the quarter, compared with Rs. 11 billion in the same period last year.
According to AHL, the increase was primarily driven by higher contributions from BYD/Prime.
The strong quarterly performance was mainly supported by a 22% increase in gross profit, with AHL attributing the improvement to a higher period-weighting factor for the Lalpir Energy Limited (LEL) plant.
HUBC’s consolidated revenue increased 10% YoY to Rs. 20.5 billion, mainly due to higher plant utilization across several projects.
NEL’s utilization rose to 17% in 4QFY26, compared with 3% in the same quarter last year.
CHPGC also operated at a higher 29% utilization rate, following earlier disruptions and seasonal demand.
Meanwhile, TEL and TNPL maintained utilization rates of 83% and 79%, respectively.
LEL’s utilization also increased significantly to 75%, compared with 52% in the corresponding quarter of the previous year.
HUBC’s finance costs declined 18% YoY during the fourth quarter.
The reduction was supported by continued repayments of loans linked to CPEC investments, along with the impact of lower interest rates.
The company’s effective tax rate also fell significantly to 1.4% in 4QFY26, compared with 18.8% in the same period last year.
AHL said the lower tax rate supported quarterly earnings, as a large portion of the company’s tax obligations had already been recognized in the previous quarter.
HUBC declared a cash dividend of Rs. 5 per share for the fourth quarter.
The payout is expected to be supported partly by dividend income, which increased to Rs. 550 million during the quarter from Rs. 420 million a year earlier.
The company’s stronger earnings and improved contributions from associates highlight the growing importance of its diversified investment portfolio, including its exposure to BYD/Prime.
HUBC is currently trading at around 5.2 times AHL’s estimated FY27 earnings.
