HUBCO FY26 briefing: Thar cash flow meets EV ambition
HUBCO's FY26 briefing shows a changing earnings mix: legacy power contracts are fading, while Thar dividends, EV infrastructure, oil & gas and mining add new opportunities—and new execution risk.
The short version
HUBC is moving from a legacy independent-power-producer model toward a wider portfolio of contracted power assets, electric mobility, oil & gas and early-stage mining. FY26 still shows the importance of cash distributions from subsidiaries and associates, but the briefing provides clearer milestones for the next set of businesses.
| FY26 highlight | Reported figure | Why it matters |
|---|---|---|
| Consolidated profit attributable to HUBCO | PKR 49.6bn, +8% | Earnings held up despite lower revenue. |
| Consolidated EPS | PKR 38.26 | Profit attributable to HUBCO divided by its outstanding shares. |
| Unconsolidated profit | PKR 24.5bn, +28% | Dividend income/share of profit rose to PKR 29.3bn, +97%. |
| Thar generation | 3,646 GWh | The two 330MW plants both paid maiden dividends. |
| Gharo EV assembly plant | $150m investment | Planned annual capacity of 25,000 vehicles; target COD in 2H 2026. |
The central question is therefore less about whether legacy generation can sustain past revenue, and more about whether management can turn operating cash flow into durable returns from a more complex set of businesses.
A portfolio in transition
HUBCO group footprint
Operating power assets and diversified businesses
| Business | Group company / asset | Briefing detail |
|---|---|---|
| Power generation | Thar Energy | 330 MW |
| Power generation | ThalNova Power Thar | 330 MW |
| Power generation | China Power Hub Generation | 1,320 MW |
| Power generation | Laraib Energy | 84 MW |
| Power generation | Narowal Energy | 225 MW |
| Oil & gas | Prime International Oil & Gas | 602 MMscfd E&P operating capacity, including JV partners |
| Mining | Sindh Engro Coal Mining | 7.6 MTPA mining capacity |
| Electric mobility | Mega Motor | EV assembly plant under construction |
| Electric mobility | Hubco Green | EV charging infrastructure |
FY26 earnings: less revenue, more cash income
| Metric | FY26 | YoY change | Briefing explanation |
|---|---|---|---|
| Consolidated revenue | PKR 71.1bn | -15% | Early termination of the Hubco PPA and renegotiation of Narowal Energy's PPA reduced revenue. |
| Consolidated profit attributable to holding company | PKR 49.6bn | +8% | Higher share of profit from associates and lower finance cost. |
| Consolidated EPS | PKR 38.26 | +8% | Profit growth despite the lower-revenue base. |
| Unconsolidated profit | PKR 24.5bn | +28% | Higher dividend income from subsidiaries/associates and lower finance cost. |
This matters because it changes how the numbers should be read. The fall in revenue does not, by itself, signal a collapse in profitability: the group is increasingly relying on dividends and associates’ earnings rather than sales from legacy power purchase agreements. That can support cash generation, but it also makes the quality and timing of upstream distributions more important.
Thar is becoming a cash-returning investment
HUBCO’s Thar Energy Limited and ThalNova Power Thar have a combined 660MW capacity. The briefing reported 3,646 GWh delivered to the national grid in FY26, availability above contractual minimums, and maiden dividends from both entities after their Project Completion Dates.
- Management estimates those plants saved roughly $90m of foreign exchange during FY26 through domestic-coal generation.
- China Power Hub Generation Company, the 1,320MW imported-coal asset, also paid a sizeable dividend during the year.
- HUBCO’s reported group power footprint is 2,289MW; this remains the cash-generating base from which the newer initiatives are being funded.
The constructive interpretation is that earlier development spending is beginning to convert into parent-company cash receipts. The counterpoint is concentration: contracted power remains foundational while the newer businesses are still being built.
Electric mobility is the largest visible growth project
HUBCO’s EV strategy is broader than vehicle imports. The group is building a linked assembly, retail and charging model around the BYD brand.
- Demand ambition: management targets 30% of Pakistan’s combined EV/PHEV market; its largest-ever RoRo shipment brought more than 2,000 units in July 2026.
- Manufacturing: the Gharo new-energy-vehicle plant carries a $150m investment, was financially closed in January 2026, and is designed for 25,000 vehicles a year, scalable to 50,000. Commercial operations are targeted in the second half of 2026.
- Distribution: five company-owned experience/care centres are operating in Karachi, Lahore and Islamabad, while two third-party dealerships have opened and eight more dealerships are at various development stages.
- Charging: Hubco Green reported 24 DC fast chargers nationwide, with further sites identified alongside oil-marketing-company partners for FY27.
This is the portfolio’s clearest near-term execution test. Assembly commissioning, consumer demand, dealer economics, charging utilisation and working-capital discipline will matter more than the headline market-share target.
Oil, gas, mining and FESCO add optionality—not base-case earnings yet
Prime International Oil & Gas acquired the Sukhpur II and Naing Sharif onshore blocks, plus working interests in four offshore blocks including operatorship of Sapat Bandar. Management frames the additions as a way to offset decline from existing fields and create further drilling opportunities.
Ark Metals has completed geological and geophysical work in Chaghi, Balochistan; its first resource report identified mineral potential and a lithium scoping study has been completed. These remain exploration-stage activities, where geological, funding, permitting and execution risk are material.
The FESCO opportunity should also be read carefully. HUBCO’s wholly owned subsidiary Hub Power Holdings leads a consortium with Metro Ventures, Lucky Cement and Kohat Cement that has been prequalified by the Privatisation Commission Board. Prequalification is a gateway to a process, not a transaction award or an earnings contribution.
What to watch next
- Cash upstreaming from the power portfolio. Maiden Thar dividends are a useful proof point; their consistency and the scale of future CPHGC distributions will matter.
- Gharo’s 2H 2026 commissioning milestone. The project has financial close and a stated date, but construction, ramp-up and demand still need to validate the investment case.
- Capital intensity and leverage. New mobility, exploration and any distribution investment must be balanced against dividend capacity and financing needs.
- The mix of realised versus optional value. Thar and CPHGC are operating assets; EVs are in build-out; oil, gas, mining and FESCO remain earlier in their respective value chains.
Bottom line
The FY26 briefing gives a more credible bridge between HUBCO’s legacy power business and its next phase. Thar’s maiden dividends and continued distributions from established assets provide evidence of cash generation, while the Gharo project supplies a tangible near-term EV milestone. The trade-off is a company with more possible earnings engines—but also more capital-allocation, operational and regulatory risk.
Source: HUBCO analyst briefing for the year ended 30 June 2026, published through the Pakistan Stock Exchange Data Portal on 2 September 2026. This post is informational only and is not investment advice.