Karachi: HUBC has announced its financial results for the first quarter of FY27, revealing a consolidated net profit after tax (NPAT) of PKR 12.8 billion, reflecting a 10% year-on-year increase. The earnings per share (EPS) stood at PKR 9.9, marking a decrease of 23% quarter-on-quarter. These results were largely anticipated, as they were driven by a higher share of profit from associates and reduced finance costs.

According to AKD Securities Limited, the unconsolidated EPS for HUBC reached PKR 6.3, showing a 3% increase year-on-year and a 14-fold increase quarter-on-quarter. In addition to reporting its financial performance, HUBC declared an interim cash dividend of PKR 5.0 per share, consistent with the same period last year.

The company's net sales rose to PKR 22.1 billion, representing a 27% year-on-year increase and an 8% quarter-on-quarter rise, attributed to higher generation off-takes across its fleet. Despite this growth in sales, gross margins declined to 36%, compared to 44% in the same period last year.

The consolidated fleet generation for HUBC surged to 2,311 GWh, with a utilization rate of 46%, up 75% from 1,321 GWh in the first quarter of FY26. This increase was driven predominantly by the China Power Hub Generation Company (CPHGC), which generated 1,044 GWh compared to 304 GWh in the same period last year, as well as continued base-load operations from Thar coal plants.

HUBC has maintained a 'BUY' stance with a target price of PKR 215 per share by December 2026. This outlook is supported by strong cash flow visibility, increasing cash payouts from coal-based assets following project completions, and a new automotive venture with Mega Motors Ltd, which HUBC holds a 50% stake in.