CARE Ratings Reaffirms 'BBB (Is)' Rating for Bajeko Sekuwa Ahead of IPO

CARE Ratings Nepal has reaffirmed its 'CARE-NP BBB (Is)' issuer rating for Bajeko Sekuwa Limited (BSL), citing moderate credit risk and a moderate degree of safety on timely debt servicing.

The rating agency pointed to BSL's four-decade operating history, established brand, and expanding franchise network the company now runs 26 outlets, including 20 franchise and 6 company-owned locations in Nepal, plus 6 international franchise outlets.

In FY26 (unaudited), BSL reported operating income of Rs. 45.5 crore, a PBILDT margin of 17.95%, overall gearing of 0.22 times and interest coverage of 7.09 times.

CARE flagged profitable scaling, working-capital management and disciplined debt levels as key factors to watch going forward. The rating comes as Bajeko Sekuwa prepares for a proposed IPO, which it plans to use to fund its next phase of expansion.