HUBC’s Earnings Pressure Persists Despite Diversification Into EV And Autos

Posted by: Aamir Hayat Like: 0 Post Date: April 27, 2026

HUBC’s Earnings Pressure Persists Despite Diversification Into EV And Autos

Ticker: The Hub Power Company Limited HUBC
Analyst Briefing Date: February 26, 2026

This article summarizes The Hub Power Company Limited’s corporate briefing, focusing on 1HFY26 earnings decline, strong quarterly recovery, operational performance across plants, and forward outlook on diversification into EV infrastructure, automotive manufacturing, and mining. It highlights a transition phase from traditional power earnings toward new growth avenues.

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What did the management say?

Management stated that the company is actively shifting its strategic focus away from dependence on conventional power generation toward diversification in electric vehicles, automotive assembly, and mineral exploration. Key initiatives include the CKD assembly plant with Mega Motors, which has achieved financial close with a total project cost of USD 150 million. They highlighted the operational rollout of EV infrastructure through Hubco Green, with 16 DC fast chargers already active and connectivity expanding across major routes. Management also noted progress in exploration activities, including completed seismic surveys for the Zin block, with drilling expected in late 2026 or early 2027. While traditional plants continue operations, the company is optimizing post-PPA termination conditions and managing circular debt exposure.

What did the numbers say?

HUBC reported net earnings of PKR 22.8 billion in 1HFY26, down 14% from PKR 26.6 billion in the same period last year. Earnings per share declined to PKR 17.6 from PKR 20.5. However, quarterly performance showed a strong rebound, with 2QFY26 earnings rising 152% year on year to PKR 10.6 billion. Operationally, Thar-based plants (TEL & TNTPL) generated 1,700 GWh with load factors ranging from 60% to 68% and availability between 89% and 96%. Dividend income remained a key support, including PKR 4 billion from TELNOVA and PKR 1 billion from TEL. The company also reported approximately USD 116 million in foreign exchange savings from local coal usage during the period.

What should investors expect going forward?

Investors should expect earnings to increasingly reflect a mix of traditional power generation and emerging non-power businesses. The CKD plant and EV charging network expansion are expected to become key drivers of future revenue diversification. These projects will be important in reducing reliance on regulated power returns over time. However, circular debt exposure, particularly at CPHGC, remains a structural risk with PKR 68 billion outstanding. Future performance will depend on recovery improvements, optimization of legacy power assets, and execution of diversification projects. The transition toward EV infrastructure and mining will be critical in shaping long-term growth.

What are analysts saying about HUBC stock?

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According to the KSEStocks Database, HUBC is covered by 11 analysts in Pakistan and they have an average price rating of PKR 232. This average price target suggests an upside of 1.9% from the last close of PKR 227.47. According to EPS estimates from 15 different brokers, HUBC has an average 2026 EPS expectation of 39.4. This suggests the stock is now trading at a forward PE of 5.8.

Why do we compile research firms’ forecasts? Broker research is fragmented across different houses. Compiling it in one place helps investors see consensus, identify divergence, and think independently rather than relying on a single view.

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →