HUBC posts Rs10.6bn profit in 2QFY26

Hub Power Company Limited (HUBC) reported consolidated profit of Rs10.6 billion for the second quarter of FY26, translating into earnings per share (EPS) of Rs8.19, up 152 percent year-on-year but down 9 percent on a sequential basis, with the result falling short of industry expectations due to a higher-than-anticipated effective tax rate. The sharp year-on-year increase in earnings was primarily attributed to amendments in the company’s Power Purchase Agreement (PPA) implemented in 2QFY25, which improved base profitability. However, quarter-on-quarter decline in profit was mainly driven by a rise in the effective tax rate (ETR). The company’s ETR stood at 23.8 percent in 2QFY26, compared to 38.7 percent in the same quarter last year and 19.3 percent in 1QFY26. Cumulatively, the effective tax rate for 1HFY26 was recorded at 21.6 percent, compared to 19.7 percent in the corresponding period last year.