Karachi: HUBC has reported a significant increase in earnings for the fourth quarter of fiscal year 2026, with a consolidated profit after tax of PkR16.6 billion, marking a 45% year-on-year and 53% quarter-on-quarter rise. This growth was driven by a higher than expected share of profit from associates. The company's earnings per share for the quarter stood at PkR12.77.

According to AKD Securities Limited, the cumulative profit for the fiscal year 2026 reached PkR49.6 billion, reflecting an 8% increase from the previous year's PkR45.8 billion. Despite the rise in earnings, the company announced a final dividend per share of PkR5.0, which is a 50% decline year-on-year but remains unchanged quarter-on-quarter. The total dividend per share for the fiscal year increased by 33% to PkR20.0.

Net sales for the quarter rose to PkR20.6 billion, representing a 10% year-on-year and 25% quarter-on-quarter increase, attributed to higher generation. However, gross margins compressed to 39.3% compared to 44.9% in the same period last year. The consolidated fleet generation surged to 2,038 GWh, with a utilization rate of 40.8%, up from 1,204 GWh and 24.1% utilization in the same quarter of the previous year. The China Power Hub Generation Company, in which HUBC holds a 46% stake, generated 758 GWh, a significant increase from 133 GWh in the same period last year, driven by gas and RLNG supply disruptions that shifted dispatch towards coal-based capacity.

AKD Securities Limited maintains a 'HOLD' stance on HUBC, with a target price of PkR215 per share by December 2026, noting that current valuations already reflect expected cash flow growth and potential benefits from the company's involvement in the automotive sector through its BYD venture.