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

MG News | October 30, 2025 at 11:30 AM GMT+05:00

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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.

STATEMENT OF PROFIT OR LOSS FOR THE QUARTER ENDED SEPTEMBER 30, 2025 (Rs.000)
Description	2025	2024	change%
CONTINUING OPERATIONS
Revenue from contracts with customers - net	17,397,174	32,037,743	-46%
Cost of revenue	(9,810,888)	(13,988,681)	-30%
GROSS PROFIT	7,586,286	18,049,062	-58%
General and administration expenses	(622,706)	(436,608)	43%
Other income	1,318,646	1,049,387	26%
Other operating expenses	(119,487)	-
PROFIT FROM OPERATIONS	8,162,739	18,661,841	-56%
Finance costs	(2,501,433)	(5,460,732)	-54%
Share of profit from associates and joint ventures - net	10,794,486	10,338,069	4%
PROFIT BEFORE TAXATION FROM CONTINUING OPERATIONS	16,455,792	23,539,178	-30%
Taxation	(3,176,975)	(2,980,902)	7%
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS	13,278,817	20,558,276	-35%
DISCONTINUED OPERATIONS
Loss from discontinued operations	-	(248,536)
NET PROFIT FOR THE PERIOD	13,278,817	20,309,740	-35%
Earning per share	8.96	14.74	-39%

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