Hub Power FY26 Profit Hits Rs. 50 Billion on Stronger BYD Contribution

Hub Power Company Limited (HUBC) announced a fiscal year 2026 profit after tax (PAT) of Rs. 48.6 billion, marking an 8 percent increase from the previous year's Rs. 46 billion. The company's fourth-quarter profit surged to Rs. 16.5 billion, a 39 percent rise year-on-year and a 53 percent quarter-over-quarter increase. HUBC's earnings from associates grew to Rs.

13 billion for the fourth quarter of fiscal year 2026, up from Rs. 11 billion in the same period last year. The rise in profits was primarily attributed to higher contributions from BYD/Prime. Gross profit increased by 22 percent, aided by a larger period-weighting factor for the Lalpir Energy Limited (LEL) plant. The effective tax rate decreased significantly to 1.4 percent in the fourth quarter of fiscal year 2026 from 18.8 percent in the same period last year.

HUBC declared a cash dividend of Rs. 5 per share for the quarter, supported by a dividend income of Rs. 0.55 billion, up from Rs. 0.42 billion in the same quarter last year. The company's consolidated revenue climbed 10 percent year-on-year to Rs. 20.5 billion, driven by higher plant utilization. NEL's utilization rose to 17 percent in the fourth quarter of fiscal year 2026 from 3 percent in the same period last year, while CHPGC operated at a 29 percent utilization rate following disruptions and seasonal demand.

TEL and TNPL maintained utilization levels of 83 percent and 79 percent, respectively. LEL's utilization increased sharply to 75 percent from 52 percent in the same quarter last year. The stock currently trades at 5.2 times AHL's FY27 estimated earnings.