HUBC: Earnings rise as business mix shifts

Hub Power Company (HUBC) posted higher consolidated earnings for FY26 even as revenue and gross profit weakened, according to Business Recorder. Consolidated turnover fell 15 percent, gross profit dropped 25 percent, and the gross margin contracted to 41.7 percent from 47.8 percent in FY25. The decline is partly attributed to the early end of the Hub Plant's power purchase agreement, which makes turnover a less complete gauge of group performance.

Operating cost came down only 5 percent, so gross profit could not keep pace. Other income surged 84 percent and other operating expenses fell about 75 percent, which cushioned the operating line. The larger contribution came further down, as associates and joint ventures rose 10 percent and made up close to 65 percent of pre-tax profit from continuing operations. Finance costs also slid 40 percent on lower interest rates and reduced project borrowings, more than making up for the gross profit shortfall.

After tax and the final-tax levy, total consolidated profit rose 9 percent, with 88 percent going to HUBC shareholders. Subsidiaries and associates delivered 5,363 GWh to the grid, roughly 21 percent above last year, with China Power Hub Generation and Narowal driving the gain. The two Thar plants produced 3,646 GWh between them. The board announced a final payout of Rs5 per share, bringing the annual dividend to Rs20 from Rs15 a year earlier.