Himalayan Bullion’s Revenue Soars to Rs. 9.79 Billion in First Nine Months of FY2026

Himalayan Bullion Company Limited (HBCL), Nepal’s only organised participant in the silver bullion trading market, has reported a sharp improvement in its business performance during the first nine months of the fiscal year 2026, with revenue soaring to Rs. 9.79 billion, driven by rising global silver prices and strong demand for investment-grade silver.

The company's operational scale expanded significantly during the first nine months of FY2026 (unaudited period ended mid-April 2026), leading to a marked improvement in its financial risk profile, supported by a stronger capital structure and enhanced debt servicing indicators.

According to a recent report by CARE Ratings Nepal Limited, the company generated Rs. 9.789 billion in operating income during the first nine months of FY2026, a substantial increase from Rs. 302 million recorded in the entire FY2025. The rating agency, however, noted that the sustainability of this strong operational performance remains to be seen.

Despite the decline in FY2025, HBCL reported a remarkable turnaround during the first nine months of FY2026, with operating income soaring to Rs. 9.79 billion. The sharp growth was primarily driven by a significant rise in global silver prices and higher demand for investment-grade silver, along with increased trading volumes.

The company's operating profitability showed gradual improvement over the review period. The Profit Before Interest, Lease Rentals, Depreciation and Tax (PBILDT) margin increased to 4.23% in FY2025 from 3.77% in FY2024. During the first nine months of FY2026, the margin further improved to 5.64%, supported by bulk silver imports that reduced logistics costs and premium charges. The improvement in profitability significantly boosted the company's Gross Cash Accruals (GCA), which increased to Rs. 505 million during the first nine months of FY2026 from Rs. 42 million in FY2025.

HBCL's capital structure improved considerably during the review period. The company's Overall Gearing Ratio, which measures debt relative to shareholders' equity, declined from 1.22 times in FY2024 to 1.01 times in FY2025. Following fresh capital infusion by promoters, the ratio further improved to 0.48 times during the first nine months of FY2026. The company's equity base nearly doubled to Rs. 307 million by mid-April 2026, strengthening its financial position.

HBCL's debt servicing indicators also witnessed notable improvement. The Interest Coverage Ratio remained modest at 1.10 times in FY2025 compared to 1.20 times in FY2024. However, the ratio surged to 54.73 times during the first nine months of FY2026, reflecting the substantial increase in operating earnings.

Similarly, the Total Debt to Gross Cash Accruals Ratio improved significantly from 45.88 times in FY2024 to 2.84 times in FY2025 and further to 0.55 times during the first nine months of FY2026. CARE Ratings Nepal noted that while the company has achieved a significant scale-up in operations and profitability, the sustainability of this performance remains to be seen.

Established in 2000, Himalayan Bullion Company Limited is headquartered in Kathmandu and is the only organised participant in Nepal's silver bullion trading market. The company procures raw silver granules, refines them into silver bullion bars and coins, and trades certified 99.99% pure silver products.

Its silver bars are backed by certificates of authenticity, assuring customers of their purity and quality. HBCL is chaired by Bhisma Gautam, who has over two decades of experience in the silver business. Director Suman Gautam also brings extensive experience in investment management.

CARE Ratings Nepal Limited has assigned 'CARE-NP BB+ (Issuer Rating)' to Himalayan Bullion Company Limited. According to the rating agency, entities with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

The company is also preparing to launch an Initial Public Offering (IPO) for the general public. HBCL plans to issue 1.25 million ordinary shares with a face value of Rs. 100 per share, amounting to a total issue size of Rs. 125 million. The company has already formally initiated the IPO process and has appointed Jyoti Capital Limited as the issue and sales manager for the proposed public offering.