Hub Power 's 1QFY26 profit declines 35%, yet declares Rs5/share dividend

October 30, 2025 (MLN):  The Hub Power Company Limited (PSX: HUBC) reported a profit after tax of Rs13.28bn for the quarter ended September 30, 2025, down 35% from Rs20.31bn in the corresponding quarter last year.

Earning per share declined 39% to Rs8.96 compared to Rs14.74 in 1QFY25.

The company declared dividend at Rs5 per share.

Revenue from contracts with customers declined 46% year-on-year to Rs17.4bn from Rs32.04bn, reflecting significantly lower revenue generation during the quarter. Cost of revenue decreased 30% to Rs9.81bn from Rs13.99bn.

Gross profit contracted 58% to Rs7.59bn against Rs18.05bn in 1QFY25, with the gross margin declining to 43.6% from 56.3% in the prior year quarter, indicating severe margin compression despite lower operating costs.

General and administration expenses increased 43% to Rs622.7m from Rs436.6m. Other income increased 26% to Rs1.32bn from Rs1.05bn last year. Other operating expenses stood at Rs119.5m in 1QFY26, which were absent in the prior quarter.

The company recorded a profit from operations of Rs8.16bn, down 56% from Rs18.66bn in 1QFY25.

Finance costs declined 54% to Rs2.5bn from Rs5.46bn in the previous year, providing significant relief to the bottom line.

Profit before taxation from continuing operations stood at Rs16.46bn, down 30% from Rs23.54bn in 1QFY25.

Taxation increased 7% to Rs3.18bn from Rs2.98bn in the prior period.

Profit for the period from continuing operations declined 35% to Rs13.28bn from Rs20.56bn in 1QFY25.

The company reported a loss from discontinued operations of Rs248.5m in 1QFY25, which was absent in the current quarter.

The company concluded 1QFY26 with a net profit for the period of Rs13.28bn.

The profit decline was driven by a 46% drop in revenue resulting in a 58% collapse in gross profit, which could not be fully offset by significantly lower finance costs (down 54%) and improved share of profit from associates. The absence of discontinued operation losses provided some support to the overall result.

Copyright Mettis Link News