Amid lower revenue, Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), saw its profit decline by nearly 1% to Rs25.62 billion in the first half of the fiscal year 2025-26 that ended December 31, 2025.
On a consolidated basis, the company registered a profit of Rs25.78 billion in the same period of the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.
Consequently, earnings per share (EPS) decreased to Rs17.16 per share in the period under review compared to Rs17.99 per share in the same period last year (SPLY).
The company announced an interim cash dividend for the half year ended December 31, 2025, at Rs5 per share i.e. 50%. This is in addition to the interim dividend already paid at Rs5 per share.
On a consolidated basis, the IPP’s revenue from contracts with customers lowered by 28% to Rs34.12 billion in 1HFY26, compared to Rs47.53 billion recorded in the prior year.
HUBCO profit declines 35% in 1QFY26
The company’s cost of revenue declined by over 17% to Rs19.1 billion in 1HFY26, compared to Rs23.1 billion in SPLY.
As a result, the gross profit of HUBCO decreased by nearly 39% to Rs15.01 billion in 1HFY26. This translates to a profit margin of 44% in 1HFY26, as compared to 51.4% in SPLY
Meanwhile, the company’s other income significantly increased by over 13%, hitting Rs2.7 billion in 1HFY26, compared to Rs2.3 billion in SPLY.
The power producer’s profit from operations clocked in at Rs16.2 billion in 1HFY26, down 27%.
HUBCO saw its cost of finance lowered to Rs4.8 billion in 1HFY26, a decrease of nearly 50%.
On the other hand, HUBCO earned Rs21.3 billion as a share of profits from associates and ventures in 1HFY26, up marginally 6%.
The company’s profit before taxation stood at Rs32.67 billion, down 1%.
The IPP paid Rs7.04 billion in taxes in 1HFY26, up 10%.
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