HUBC profit rises 9% to Rs56bn, declares Rs5 dividend

August 27, 2026 (MLN): The Hub Power Company Limited (PSX: HUBC) recorded a 9% increase in its consolidated net profit for the year ended June 30, 2026, with net profit for the year climbing to Rs56.26bn from Rs51.77bn in the corresponding period last year.

Showing this steady bottom-line growth, the company's basic and diluted earnings per share (EPS) attributable to owners of the holding company expanded to Rs38.26 from Rs35.56 in FY25, while EPS from continuing operations rose to Rs38.26 from Rs35.44.

The Board of Directors has declared a final cash dividend of Rs5.00 per share (50%) for the financial year ended June 30, 2026. This is in addition to interim dividends of Rs15.00 per share (150%) already paid during the financial year.

The top-line came under pressure, with net revenue from contracts with customers declining 15% year-on-year to Rs71.13bn from Rs83.35bn in the prior year.

Cost of revenue fell at a slower pace of 5% to Rs41.44bn from Rs43.53bn, causing gross profit to contract by 25% to Rs29.69bn from Rs39.82bn showing the impact of lower revenue on overall margins.

On the expenditure side, general and administration expenses rose 12% to Rs2.01bn. Other operating expenses, however, declined sharply by 75% to Rs997.32m from Rs4.02bn a significant saving.

Other income surged 84% to Rs7.38bn from Rs4.02bn, providing a strong boost. These combined movements resulted in profit from operations declining 10% to Rs34.07bn from Rs38.04bn.

Below the operating line, the two most consequential developments of the year unfolded. Finance costs fell sharply by 40% to Rs9.14bn from Rs15.23bn a substantial reduction that meaningfully cushioned the earnings line.

More significantly, share of profit from associates and joint ventures net grew 10% to Rs45.32bn from Rs41.31bn, emerging as the single largest contributor to profitability and the primary driver of the year's earnings.

These combined factors pushed profit before levy and taxation from continuing operations up 10% to Rs70.25bn from Rs64.12bn.

A levy final tax charge of Rs647.10m was recorded in the current year, absent in the prior period, bringing profit before taxation from continuing operations up 9% to Rs69.60bn from Rs64.12bn.

Taxation rose 7% to Rs13.34bn from Rs12.50bn a proportionally smaller increase than pre-tax profit growth providing an additional tailwind.

Profit for the year from continuing operations grew 9% to Rs56.26bn. No profit from discontinued operations was recorded in the current year, against Rs161.98m in FY25, with net profit for the year at Rs56.26bn, up 9%.

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