PACRA maintains HUBC's AA+ rating

June 04, 2026 (MLN): The Pakistan Credit Rating Agency (PACRA) has maintained Hub Power Company's (PSX: HUBC) long-term entity rating at AA+ and short-term rating at A1+, with a stable outlook.

The ratings reflect HUBCO's strong business profile as a diversified energy conglomerate, underpinned by investments across power generation, mining, upstream energy, and electric vehicles.

The company holds stakes in Narowal Energy Limited, Laraib Energy Limited, China Power Hub Generation Company, Thar Energy Limited, and ThalNova Power Thar, with operations and maintenance support provided through its wholly owned subsidiary, Hub Power Services Limited.

On the financial front, HUBCO reported unconsolidated net profit of Rs14.64 billion in 1HFY26, up from Rs13.60 billion in the same period last year, though consolidated profitability dipped to Rs25.62 billion from Rs 26.44 billion, primarily due to the termination of the base power plant.

The company significantly deleveraged over the period, with total borrowings falling from Rs41.53 billion in FY24 to Rs2.40 billion by December 2025, bringing leverage down to 3.3% from 36.0% in June 2024.

HUBCO has also entered the electric vehicle sector through Mega Motor Company Limited in partnership with BYD, with the first locally assembled vehicle expected by Q4FY26 following financial close in January 2026.

The company additionally established HUBCO Green (Private) Limited to develop a nationwide EV charging network.

PACRA noted that the planned EV investments are expected to materially increase group-level leverage going forward, which will remain a key consideration in assessing HUBCO's financial risk profile. The ratings will remain contingent on effective execution of new ventures, continuity of dividend flows from subsidiaries, and disciplined management of expansion-related borrowings.

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