HUBC declares Rs5 per share dividend for 3QFY26

April 22, 2026 (MLN): 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 Rs37.75bn compared to Rs38.15bn in the corresponding period last year.

Earning per share for the company came at Rs25.49, lower than Rs26.4 in SPLY.

The company also declared dividend at Rs5 per share.

The company faced substantial top-line pressures, but a stellar performance from its associates and slashed debt-servicing costs helped shield the final bottom line from a steeper decline.

HUBC’s net revenue from contracts with customers contracted significantly by 22% year-on-year, falling to Rs50.57bn from Rs64.60bn. The cost of revenue also decreased, but at a slower pace of 13%, dropping to Rs28.96bn. This top-line contraction and margin compression caused the gross profit to plunge by 31%, settling at Rs21.61bn down from Rs31.41bn.

At the operational level, the company witnessed mixed trends. General and administration expenses grew by 14% to Rs1.40bn, and exploration and evaluation expenses spiked by 447% to Rs456.68m. However, HUBC secured massive relief as "other operating expenses" plummeted 90% to just Rs344.10m, while "other income" surged 68% to Rs6.62bn. Despite these favorable non-core operational movements, the significant gross profit erosion pulled the profit from operations down by 14% to Rs26.03bn.

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 Rs6.86bn from a heavy Rs12.45bn in the previous year.

Most importantly, the company's share of profit from associates and joint ventures grew by 6% to a massive Rs32.31bn eclipsing the core operating profit.

Driven by these slashed finance costs and robust associate earnings, the profit before taxation actually recorded a 6% increase, reaching Rs51.47bn.

However, a substantially heavier tax hit erased these pre-tax gains. Taxation surged by 46% to Rs13.72bn from Rs9.37bn last year.

Ultimately, with no drag from discontinued operations this year (compared to an Rs823.85m loss last year), the final net profit was contained to a very slight 1% decline, closing at Rs37.75bn.

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