Higher plant utilisation, stronger associate earnings and lower finance costs support HUBCO’s quarterly performance
ISLAMABAD: The Hub Power Company Limited (HUBCO) reported a 39% year-on-year (YoY) increase in net profit to Rs16.5 billion during the fourth quarter of fiscal year 2025-26 (4QFY26), with earnings per share (EPS) reaching Rs12.77.
On a quarter-on-quarter basis, the company’s earnings increased 53%, supported by a 22% rise in gross profit and a lower effective tax rate. The decline in the tax burden was mainly attributed to the recognition of a substantial portion of super tax obligations in the previous quarter.
HUBCO declared a cash dividend of Rs5 per share for 4QFY26, with the payout likely supported by dividend inflows. Standalone dividend income during the quarter amounted to Rs0.55 billion, equivalent to Rs0.42 per share.
Consolidated revenue rises 10%
HUBCO’s consolidated revenue rose 10% YoY to Rs20.5 billion in 4QFY26, primarily due to higher plant utilisation across several projects.
NEL’s plant utilisation increased significantly to 17% during the quarter from 3% in the same period last year. CPHGC also recorded higher utilisation of around 29%, despite RLNG supply disruptions and seasonal fluctuations in demand.
Meanwhile, TEL and TNPTL maintained strong utilisation levels of 83% and 79%, respectively. LEL’s utilisation also climbed sharply to 75% from 52% in the corresponding period last year.
Associate earnings remain strong
HUBCO’s share of profit from associates stood at Rs13 billion in 4QFY26, compared with Rs11 billion in the third quarter and Rs10.9 billion in 4QFY25.
The contribution was slightly above expectations and was likely supported by higher earnings from BYD and Prime, although further details are awaited.
Finance costs decline
Finance costs declined 18% YoY during the quarter and also improved sequentially.
The reduction was attributed to continued repayments of loans linked to China-Pakistan Economic Corridor investments, along with the impact of lower interest rates.
Lower tax rate boosts earnings
The effective tax rate (ETR) stood at just 1.4% in 4QFY26, compared with 18.8% in the same quarter last year, providing additional support to bottom-line growth.
The substantially lower tax burden was a key contributor to the company’s strong quarterly earnings growth.
HUBCO trades at 5.2 times estimated FY27 earnings
Based on current market valuations, HUBCO is trading at around 5.2 times its estimated FY27 earnings.
Its sum-of-the-parts (SOTP)-based valuation has been assessed at Rs220 per share.
The latest quarterly performance reflects stronger plant utilisation, improved associate contributions, lower financing costs and a significantly reduced tax burden, which collectively supported HUBCO’s earnings growth in the final quarter of FY26.