Hub Power Company Limited (HUBC) is expected to report earnings per share (EPS) of Rs9.64 for the first quarter ended September 30, 2026, up 7.5 percent year-on-year, according to a preview from AHCML Research. The brokerage house expects the company to announce a cash dividend of Rs5.25 per share along with its financial results, scheduled to be released on October 28, 2026.
AHCML Research said anticipated earnings growth is driven primarily by improved operational performance across HUBC’s power generation portfolio, supported by higher plant utilization amid elevated summer electricity demand and temporary disruptions in RLNG-based generation that increased reliance on alternative thermal power sources.
However, on a quarter-on-quarter basis, earnings are projected to decline 24.5 percent due to lower gross margins and a higher effective tax rate than the previous quarter.
According to the research report, China Power Hub Generation Company (CPHGC) recorded a significant improvement in utilization, reaching 36 percent during 1QFY27 compared with 10 percent in the corresponding period last year. Similarly, Thar Energy Limited (TEL) and ThalNova Power Thar Limited (TNPTL) are expected to achieve utilization rates of 88 percent and 83 percent, respectively, versus 75 percent and 71 percent a year earlier.
Laraib Energy Limited (LEL) also recovered, with utilization improving to 31 percent from 10 percent, supported by better water flows and seasonal demand. Hub Narowal’s utilization increased to 18 percent from 4 percent in the same period last year.
AHCML Research further noted that HUBC’s profitability is likely to benefit from easing finance costs and lower taxation. The report estimates finance costs will decline 15.3 percent year-on-year and 6.7 percent quarter-on-quarter, supported by lower interest rates and reduced long-term borrowings, while the tax charge is expected to fall 20.3 percent year-on-year.
The share of profit from associates is projected to remain largely stable, up 10.1 percent year-on-year.
The report also highlighted HUBC’s growing exposure to the automobile sector through BYD Pakistan. AHCML Research estimates that BYD Pakistan sold around 3,000 vehicles during the quarter, including deliveries from a shipment of 2,500 vehicles received in July 2026. Consequently, the venture is expected to contribute approximately Rs423 million to HUBC’s earnings during 1QFY27.
Despite the expected sequential decline in quarterly earnings, AHCML Research believes improved plant utilization, lower financing costs and contributions from associated businesses will continue to support HUBC’s overall earnings outlook.