HUB Power Company Limited (PSX: HUBC) reported a profit after tax (PAT) of Rs. 48.6 billion for fiscal year 2026, up 8 percent from Rs. 46 billion a year earlier, with higher contributions from BYD/Prime helping support earnings.
The company’s fourth-quarter profit rose to Rs. 16.5 billion, up 39 percent year-on-year (YoY) and 53 percent quarter-on-quarter (QoQ).
HUBC’s share of profit from associates stood at Rs. 13 billion during 4QFY26, compared with Rs. 11 billion in the same quarter last year. According to Arif Habib Limited (AHL), the increase was driven by higher contributions from BYD/Prime.
The strong quarterly performance was driven mainly by a 22 percent increase in gross profit, supported by a higher period-weighting factor for the Lalpir Energy Limited (LEL) plant.
A lower effective tax rate also supported earnings as tax obligations were largely recognised in the previous quarter.
HUBC declared a cash dividend of Rs. 5 per share for the quarter. The payout is likely to be supported by dividend income, with the company’s dividend income during the quarter standing at Rs. 0.55 billion, compared with Rs. 0.42 billion in the same quarter last year.
HUBC’s consolidated revenue increased 10 percent YoY to Rs. 20.5 billion, mainly due to higher plant utilisation.
NEL’s utilisation rose to 17 percent in 4QFY26 from 3 percent in 4QFY25, while CHPGC also operated at a higher 29 percent utilisation rate following disruptions and seasonal demand.
Meanwhile, TEL and TNPL maintained utilization levels of 83 percent and 79 percent, respectively. LEL’s utilization also increased sharply to 75 percent from 52 percent in the same quarter last year.
Finance costs declined 18 percent YoY during the quarter, supported by continued loan repayments related to CPEC investments and the impact of lower interest rates.
The company’s effective tax rate (ETR) was recorded at 1.4 percent in 4QFY26, compared with 18.8 percent in the same period last year.
HUBC currently trades at 5.2 times AHL’s FY27 estimated earnings.
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