Karachi, February 24, 2026 — The Hub Power Company Limited (HUBCO) has reported a robust financial performance for the second quarter of fiscal year 2025-26 (2QFY26), posting a 152% year-on-year (YoY) jump in profit after tax (PAT) to PKR 10.6 billion, translating into earnings per share (EPS) of PKR 8.2, compared with PKR 4.2 billion (EPS: PKR 3.2) in the same period last year.
According to analysts at Insight Securities Limited, the earnings growth was driven by higher gross profit, rising income from associates, and a sharp decline in finance costs. However, the result came in slightly below expectations due to a higher-than-anticipated effective tax rate (ETR).
Revenue and operational performance
During the quarter, HUBCO’s revenue increased by 8% YoY to PKR 16.7 billion, supported by stable power generation operations. The company’s share of profit from associates climbed 7% YoY to PKR 10.5 billion, mainly due to improved contributions from Mega Motors.
Other income edged up 3% YoY and 2% quarter-on-quarter (QoQ), reflecting higher returns on cash and cash equivalents. Meanwhile, other expenses declined sharply by 97% YoY, mainly due to the absence of a one-off trade debt write-off that had impacted earnings in the same period last year.
Finance cost and tax
HUBCO recorded a 44% YoY and 8% QoQ decline in finance costs, benefiting from lower interest rates and reduced debt levels. The company’s effective tax rate stood at 24%, significantly lower than 39% in the same period last year, providing further support to profitability.
Dividend announcement
Along with the results, HUBCO announced a cash dividend of PKR 5 per share, in line with the previous quarter. The payout was largely supported by dividend income from its investments, particularly Thar Energy Limited (TEL) and ThalNova Power Thar Limited (TNPTL).
According to Arif Habib Limited, the company recorded PKR 7.9 billion (PKR 6.06/share) in dividend income during the quarter, mainly attributable to China Power Hub Generation Company (CPHGC). Of the PKR 58 billion dividend declared by CPHGC in September 2025, a significant portion was routed through Hub Power Holding Limited (HPHL), with the remaining amount likely recognized in the current quarter.
Outlook and associate contributions
TEL and TNPTL achieved Project Commercial Date (PCD) on October 31, 2025, paving the way for consistent dividend flows. As per Fauji Fertilizer Company’s financials, TEL declared a PKR 997 million dividend in December 2025, translating into an estimated after-tax benefit of PKR 0.35/share for HUBCO. Additionally, TEL announced a PKR 5.1 billion dividend in 2026, expected to be recognized in the March 2026 accounts, which could lift HUBCO’s total after-tax benefit to around PKR 5.9/share.
Moreover, prepayments and other receivables declined to PKR 14.7 billion from PKR 23.8 billion, indicating a positive cash flow impact of nearly PKR 7/share, likely due to the recovery of sales tax and WPPF receivables from CPPA-G.
Analysts’ view
Market analysts believe HUBCO’s strong earnings momentum, improving cash flows, and sustained dividend payouts position the company favorably for the remainder of FY26, with further upside expected from associate contributions and lower financing costs.