नेपाली
Kathmandu, Panchakanya Group has made a strong comeback in business within a year after being affected by economic slowdown and sluggish activity in the construction sector. The group, one of Nepal’s leading manufacturers of steel and plastic products, reported a consolidated operating income of nearly Rs 7 billion in 2025.
According to the latest report by CARE Ratings Nepal, the financial health and business performance of the group’s major companies have improved significantly. Following the improvement, the rating agency has placed the companies under “Credit Watch with Positive Implications.”
The group’s consolidated turnover, which had declined to Rs 5.84 billion in 2024, increased by around 14 percent in 2025. In the first nine months of fiscal year 2026 alone, the group recorded business transactions worth Rs 5.62 billion.
Despite the slowdown in the construction industry, increased sales volume and stability in raw material prices helped improve the group’s operating profit margin. The consolidated operating margin rose from 7.92 percent in 2024 to 9.64 percent in 2025, strengthening the group’s debt management and interest payment capacity.
The group’s largest company, Panchakanya Steel, recorded more than Rs 3.23 billion in business during the first nine months of the current fiscal year. The company has been producing and selling TMT steel rods under the “Panchakanya” brand since 1995.
Similarly, Panchakanya Rotomold posted over 18 percent growth in 2025, reaching business turnover of more than Rs 78 million. The company manufactures uPVC pipes and fittings and has also improved its profit margin.
Panchakanya Plastic Industry reported business worth over Rs 98 crore in 2025. The company supplies HDPE pipes and fittings for irrigation and drinking water projects across the country.
Meanwhile, Panchakanya Plast achieved a 24 percent rise in turnover in 2025. The company, which produces PPR and CPVC pipes and fittings, improved profitability through higher sales and reduced operating costs.
To support business expansion and infrastructure development, the group has secured ratings for loans exceeding Rs 8.66 billion. CARE Ratings assigned a ‘B Plus’ rating for long-term borrowing and an ‘A Four’ rating for short-term loans.
The report highlights the strong market reputation of the “Panchakanya” brand, its nationwide dealer network, and experienced management team as key strengths of the group. Under the leadership of founder chairman Prem Bahadur Shrestha, the group has expanded investments into steel, plastics, energy, and automobiles.
