Hub Power Company Limited (HUBC) reported a profit after tax (PAT) of Rs14.6 billion in the first quarter of FY27, up 10 percent year-on-year, while profit attributable to shareholders rose to Rs12.7 billion, translating into earnings per share (EPS) of Rs9.86 compared to Rs8.96 in the same period last year, according to a report by AHL Research. The research house noted that HUBC also announced an interim cash dividend of Rs5 per share for 1QFY27, unchanged from the corresponding quarter of FY26.
According to AHL Research, the company’s power generation rose 76.7 percent year-on-year to 2,318 GWh during the quarter, driven largely by a sharp rise in output from China Power Hub Generation Company (CPHGC), while generation at other operating plants also improved.
The brokerage reported that HUBC’s net revenue rose 27 percent to Rs22.1 billion, while gross profit increased by the same margin to Rs8 billion. Gross margins improved to 36.2 percent from 33.8 percent a year earlier, reflecting stronger operational performance.
AHL Research highlighted that profit from associated companies and joint ventures rose 18 percent to Rs12.7 billion, remaining a major contributor to overall earnings. Meanwhile, finance costs fell 13 percent to Rs2.1 billion on lower borrowing costs, while other income rose 12 percent to Rs1.4 billion.
As a result, profit before tax surged 18 percent year-on-year to Rs19.4 billion, supported by higher revenues, improved profitability, increased contributions from associates and lower finance charges.
However, the research house pointed out that attributable profit declined 23 percent quarter-on-quarter, mainly owing to a substantial rise in taxation. Tax expenses jumped to Rs4.8 billion during the quarter, significantly increasing the effective tax burden and weighing on profitability compared to the preceding quarter.
Looking ahead, AHL Research said HUBC’s CKD assembly plant could be a key medium- to long-term growth catalyst by supporting greater electric vehicle localization, expanding new-energy vehicle offerings, and boosting vehicle sales volumes. The brokerage also expects the company’s expanding charging network and dealership footprint to further strengthen future earnings prospects.