The Hub Power Company Limited (PSX: HUBC) reported a marginal 1% dip in its consolidated net profit for the nine months ended March 31, 2026, recording Rs37.75 billion compared to Rs38.15 billion in the corresponding period last year. Earnings per share (EPS) came at Rs25.49 , lower than Rs26.40 in the same period last year. The company also declared a dividend of Rs5 per share.
| Metric | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| Net Profit | Rs37.75bn | Rs38.15bn | -1% |
| EPS | Rs25.49 | Rs26.40 | -3% |
| Dividend | Rs5/share | – | – |
| Revenue | Rs50.57bn | Rs64.60bn | -22% |
| Gross Profit | Rs21.61bn | Rs31.41bn | -31% |
| Operating Profit | Rs26.03bn | Rs30.44bn | -14% |
Revenue and Margin Performance
The company faced substantial top-line pressures. HUBC’s net revenue from contracts with customers contracted significantly by 22% year-on-year , falling to Rs50.57 billion from Rs64.60 billion. The cost of revenue also decreased, but at a slower pace of 13%, dropping to Rs28.96 billion. This top-line contraction and margin compression caused the gross profit to plunge by 31% , settling at Rs21.61 billion down from Rs31.41 billion.
Operating Performance
At the operational level, the company witnessed mixed trends:
| Expense Category | 9MFY26 | 9MFY25 | Change |
|---|---|---|---|
| General & Administration | Rs1.40bn | Rs1.23bn | +14% |
| Exploration & Evaluation | Rs456.68m | Rs83.45m | +447% |
| Other Operating Expenses | Rs344.10m | Rs3.60bn | -90% |
| Other Income | Rs6.62bn | Rs3.95bn | +68% |
Despite favorable non-core operational movements (other operating expenses down 90%, other income up 68%), the significant gross profit erosion pulled the profit from operations down by 14% to Rs26.03 billion.
Finance Costs and Associate Earnings
The true strength of HUBC’s financial structure was showcased below the operating line. The company nearly halved its finance costs, which dropped 45% to Rs6.86 billion from a heavy Rs12.45 billion in the previous year. Most importantly, the company’s share of profit from associates and joint ventures grew by 6% to a massive Rs32.31 billion , eclipsing the core operating profit.
Bottom Line
Driven by slashed finance costs and robust associate earnings, profit before taxation actually recorded a 6% increase , reaching Rs51.47 billion. However, a substantially heavier tax hit erased these pre-tax gains. Taxation surged by 46% to Rs13.72 billion from Rs9.37 billion last year. Ultimately, with no drag from discontinued operations this year (compared to an Rs823.85 million loss last year), the final net profit was contained to a very slight 1% decline , closing at Rs37.75 billion.
About Hub Power Company
The Hub Power Company Limited (PSX: HUBC) is one of Pakistan’s largest independent power producers, operating power generation facilities across the country. The company has a diverse portfolio of energy assets and is a key player in Pakistan’s energy sector.
