Hub Power Company Limited’s standalone dividend income surged 96 percent year over year to Rs. 29.3 billion in FY2026 from Rs. 14.9 billion a year earlier, driven by higher contributions from CPEC-linked independent power producers, according to a report by Arif Habib Ltd.
Dividend income from Thar Energy Limited (TEL) reached Rs. 10.8 billion in FY2026, while Hub Power Holdings Limited (HPHL), representing CPHGC and TNPTL, contributed Rs. 11.6 billion
The sharp increase marks a significant rise from the Rs. 1.2 billion dividend income recorded in FY2020. Based on the figures, dividend income grew at an annualized rate of about 57 percent between FY2020 and FY2026.
The increase in dividend inflows has been driven by the gradual maturation of CPEC-linked power projects and their ability to send cash upstream to HUBC.
The company’s total standalone dividend income reached Rs. 29.3 billion, equivalent to Rs. 22.59 per share, in FY2026. This was nearly twice the Rs. 14.9 billion recorded in FY2025, when dividend income stood at Rs. 11.50 per share.
The higher dividend income also supported HUBC’s own dividend payout. The company declared a dividend of Rs. 20 per share for FY2026, compared with Rs. 15 per share in FY2025.
The latest dividend income was also higher than HUBC’s own annual payout, indicating that cash distributions from its investments exceeded the dividend paid to its shareholders during the year.
TEL contributed Rs. 10.85 billion to HUBC’s dividend income in FY2026, while HPHL contributed Rs. 11.60 billion. Other contributions included Rs. 3.52 billion from LEL, Rs. 2.59 billion from SECMC and Rs. 750 million from HPSL.
Going forward, the continued cash generation of CPEC linked projects, including TEL, TNPTL and CPHGC, is expected to support HUBC’s dividend income. Their cash positions and operating performance remain key factors for future distributions to the parent company.
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