The Hub Power Company Limited, commonly known by its Pakistan Stock Exchange ticker HUBC, recorded an 8.66% increase in consolidated net profit for the financial year ended June 30, 2026, as stronger contributions from associates and joint ventures and lower finance costs helped offset weaker revenue and gross profit. The company reported net profit of Rs56.26 billion for the year, compared with Rs51.77 billion in the previous financial year.
The company’s basic and diluted earnings per share attributable to owners of the holding company increased to Rs38.26 from Rs35.56 in FY2025. Earnings per share from continuing operations also rose to Rs38.26 from Rs35.44. The increase in earnings came despite pressure on the company’s revenue and operating profit during the year.
The Board of Directors of The Hub Power Company has declared a final cash dividend of Rs5 per share, equivalent to 50%, for the financial year ended June 30, 2026. The final payout comes in addition to interim dividends of Rs15 per share, or 150%, that had already been paid during the financial year. The combined dividends reflect the company’s distribution to shareholders following its annual financial performance.
Revenue from contracts with customers declined by nearly 15% year on year to Rs71.13 billion from Rs83.35 billion in the previous year. The reduction in revenue also affected the company’s gross profitability. Cost of revenue decreased by around 5% to Rs41.44 billion from Rs43.53 billion, but the decline was not sufficient to offset the fall in revenue.
As a result, gross profit fell by 25% to Rs29.69 billion from Rs39.82 billion. The decline in gross profit represented one of the major pressures on the company’s operating performance during FY2026, as revenue contracted at a considerably faster pace than the cost of revenue.
On the expenses side, general and administration expenses increased by 12% to Rs2.01 billion from Rs1.79 billion. However, the increase was partly offset by a substantial reduction in other operating expenses. These expenses fell by 75% to Rs997.32 million from Rs4.02 billion in the previous financial year.
Other income provided another significant source of support during the year. It increased by 84% to Rs7.38 billion from Rs4.02 billion. Despite the increase in other income and the sharp reduction in other operating expenses, profit from operations declined by 10% to Rs34.07 billion from Rs38.04 billion due mainly to the reduction in gross profit.
The company recorded a major improvement below the operating profit line through lower finance costs. Finance costs declined by 40% to Rs9.14 billion from Rs15.23 billion in FY2025. The Rs6.10 billion reduction in finance costs helped cushion the impact of weaker operating profitability and contributed to the improvement in the company’s overall earnings.
Another significant contributor to the annual results was the share of profit from associates and joint ventures. The company’s share of profit from these investments increased by nearly 10% to Rs45.32 billion from Rs41.31 billion. This represented the largest individual contributor to profitability among the major income items and played an important role in driving the increase in annual earnings.
The combined impact of lower finance costs and higher contributions from associates and joint ventures pushed profit before levy and taxation from continuing operations up by 10% to Rs70.25 billion from Rs64.12 billion. The company subsequently recorded a levy and final tax charge of Rs647.10 million during FY2026, whereas no such charge was recorded in the previous year.
After accounting for the levy, profit before taxation from continuing operations increased by 9% to Rs69.60 billion from Rs64.12 billion. Taxation rose by 7% to Rs13.34 billion from Rs12.50 billion. The increase in tax expense was proportionally smaller than the growth in pre tax profit, allowing the company to retain a higher level of earnings after taxation.
Profit for the year from continuing operations reached Rs56.26 billion, representing a 9% increase from Rs51.61 billion in FY2025. No profit was recorded from discontinued operations during FY2026, compared with Rs161.98 million in the previous year. Consequently, net profit for the year stood at Rs56.26 billion, compared with Rs51.77 billion previously.
The annual results show that HUBC managed to increase profitability despite a significant decline in revenue and gross profit. The improvement was primarily supported by higher profit contributions from associates and joint ventures, lower finance costs, stronger other income and a substantial reduction in other operating expenses.
For shareholders, the company’s final Rs5 per share cash dividend adds to the Rs15 per share in interim dividends already distributed during the year. The company’s annual earnings per share also increased to Rs38.26, compared with Rs35.56 in FY2025, reflecting the improvement in net earnings attributable to owners of the holding company.
Overall, The Hub Power Company ended FY2026 with net profit of Rs56.26 billion, marking an annual increase of 8.66%. While its core revenue and gross profit remained under pressure, gains from associates and joint ventures and lower financing costs provided sufficient support to lift the company’s bottom line and enable another cash dividend for shareholders.
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