Himalayan Bullion Reports Robust Growth, Prepares for IPO Amidst Stellar Q3 FY2026 Performance

Himalayan Bullion Company Limited (HBCL), the sole organized player in Nepal's silver bullion trading market, has announced an exceptional financial performance for the first nine months of fiscal year 2026. The company reported a staggering revenue surge to Rs. 9.79 billion, a remarkable turnaround driven by a confluence of rising global silver prices, robust demand for investment-grade silver, and expanded trading volumes. This impressive growth has significantly bolstered HBCL's financial risk profile, underpinned by a strengthened capital structure and enhanced debt servicing capabilities.

According to an unaudited report by CARE Ratings Nepal Limited, HBCL's operating income for the nine-month period ending mid-April 2026 reached Rs. 9.789 billion. This figure represents a monumental leap from the Rs. 302 million recorded for the entire fiscal year 2025, underscoring the company's rapid operational scale-up. The rating agency, while acknowledging the strong performance, prudently noted that the long-term sustainability of this accelerated growth remains a key area for observation.

The company's profitability metrics have also shown a consistent upward trend. The Profit Before Interest, Lease Rentals, Depreciation, and Tax (PBILDT) margin, a crucial indicator of operational efficiency, improved to 5.64% during the first nine months of FY2026. This is a significant increase from 4.23% in FY2025 and 3.77% in FY2024. This enhancement in margins is largely attributed to strategic bulk silver imports, which have effectively reduced logistics costs and premium charges, directly contributing to higher profitability. Consequently, Gross Cash Accruals (GCA) surged to Rs. 505 million in the first nine months of FY2026, a substantial rise from Rs. 42 million in FY2025, providing the company with greater internal financial flexibility.

HBCL's capital structure has undergone a considerable transformation, reflecting improved financial health. The Overall Gearing Ratio, which measures a company's debt relative to its equity, saw a significant decline from 1.22 times in FY2024 to 1.01 times in FY2025. Following a fresh capital infusion by its promoters, this ratio further improved to an impressive 0.48 times during the first nine months of FY2026. This reduction in gearing indicates a stronger equity base and reduced reliance on debt financing, making the company more resilient to market fluctuations. The company's equity base nearly doubled to Rs. 307 million by mid-April 2026, further solidifying its financial foundation.

Moreover, HBCL's debt servicing indicators have witnessed a remarkable improvement. The Interest Coverage Ratio, a measure of a company's ability to meet its interest obligations, surged dramatically to 54.73 times in the first nine months of FY2026, from modest figures of 1.20 times in FY2024 and 1.10 times in FY2025. This exponential increase highlights the substantial growth in operating earnings and the company's robust capacity to cover its debt-related expenses. 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 an exceptional 0.55 times during the first nine months of FY2026, indicating rapid debt repayment capacity relative to cash generation.

Established in 2000 and headquartered in Kathmandu, Himalayan Bullion Company Limited holds a unique position as Nepal's only organized participant in the silver bullion trading market. The company's operations encompass the procurement of raw silver granules, their refinement into certified 99.99% pure silver bullion bars and coins, and subsequent trading. Each silver bar is accompanied by a certificate of authenticity, assuring customers of its purity and quality. The company is led by Chairman Bhisma Gautam, who brings over two decades of experience in the silver business, complemented by Director Suman Gautam's extensive background in investment management.

In recognition of its financial standing, CARE Ratings Nepal Limited has assigned an 'CARE-NP BB+ (Issuer Rating)' to HBCL. This rating signifies that entities with this assessment are considered to have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

Looking ahead, HBCL is poised for a significant milestone as it prepares to launch an Initial Public Offering (IPO) for the general public. The company plans to issue 1.25 million ordinary shares, each with a face value of Rs. 100, aiming to raise a total of Rs. 125 million. This strategic move will allow broader public participation in the company's growth story. HBCL has already formally initiated the IPO process, appointing Jyoti Capital Limited as the issue and sales manager for the proposed public offering. This IPO represents a pivotal step for HBCL, enabling it to further expand its operations, strengthen its capital base, and potentially enhance its market leadership in Nepal's precious metals sector. Investors will be keenly watching how the company leverages this capital to sustain its impressive growth trajectory.