KATHMANDU: Five cement companies listed on Nepal’s stock exchange collectively posted a net profit of Rs 2.27 billion in the fiscal year 2025/26, up 15.10% from a year earlier, despite continued pressure from rising production costs.

Shivam Cement, Ghorahi Cement Industry, Sonapur Minerals and Oil, Sarbottam Cement and Palpa Cement Industries reported a combined net profit of Rs 2.27 billion in FY 2025/26, compared with Rs 1.97 billion in FY 2024/25.

The improvement amounts to an increase of Rs 297.8 million. However, Ghorahi Cement remained in the red, reporting a net loss of Rs 308 million.

Sales rise, but costs remain a challenge

The five companies generated combined operating revenue of Rs 31.36 billion during the review year, up 7.90% from Rs 29.07 billion a year earlier.

At the same time, their combined cost of sales increased 6.10% to Rs 23.98 billion from Rs 22.60 billion.

The figures show that while cement manufacturers managed to expand sales, rising production and operating costs continued to weigh on margins.

Sarbottam Cement leads profit growth

Sarbottam Cement posted a net profit of Rs 1.11 billion in FY 2025/26, up 7.70% from Rs 1.03 billion a year earlier.

Its operating revenue increased to Rs 10.26 billion from Rs 9.54 billion. Cost of sales also rose to Rs 7.94 billion from Rs 7.53 billion.

The company reported other income of Rs 176.95 million. Administrative expenses stood at Rs 257.44 million, while selling and distribution expenses amounted to Rs 656.55 million.

Sarbottam has paid-up capital of Rs 5.22 billion and other equity of Rs 4.88 billion. Its earnings per share (EPS) stood at Rs 21.20, while net worth per share was Rs 199.82.

Shivam Cement sees profit decline

Shivam Cement reported a net profit of Rs 784.47 million, down from Rs 798.19 million in the previous fiscal year.

The decline came despite lower production costs. The company’s operating revenue fell to Rs 6.92 billion from Rs 7.77 billion.

Cost of sales also declined to Rs 5.33 billion from Rs 6.04 billion, while gross profit fell to Rs 1.60 billion from Rs 1.73 billion.

Other income stood at Rs 133.21 million. Administrative expenses were Rs 266.09 million, while selling and distribution expenses amounted to Rs 531.12 million.

Shivam has paid-up capital of Rs 5.59 billion and other equity of Rs 4.96 billion. Its EPS stood at Rs 14.03 and net worth per share at Rs 188.76.

Ghorahi remains loss-making

Ghorahi Cement Industry reduced its net loss substantially but remained in the red.

The company reported a net loss of Rs 308 million in FY 2025/26, compared with a loss of Rs 554.3 million a year earlier.

Its operating revenue increased to Rs 5.05 billion from Rs 4.73 billion, while cost of sales declined to Rs 3.59 billion from Rs 4.04 billion.

Gross profit increased significantly to Rs 1.14 billion from Rs 714.4 million.

The company’s other income fell 47.79%, while administrative expenses declined 21.07%.

Ghorahi has paid-up capital of Rs 5.02 billion and retained earnings of Rs 643.7 million. Its EPS remained negative at Rs 6.13, while net worth per share stood at Rs 165.72.

Sonapur posts sharp turnaround

Sonapur Minerals and Oil recorded one of the strongest improvements among the five companies.

Its net profit jumped to Rs 337.1 million from just Rs 47.25 million a year earlier.

Operating revenue surged to Rs 4.41 billion from Rs 2.59 billion, while cost of sales increased to Rs 3.13 billion from Rs 1.89 billion.

Despite the sharp increase in costs, gross profit rose to Rs 1.28 billion from Rs 701.3 million.

Sonapur has paid-up capital of Rs 3.07 billion and reserves of Rs 1.44 billion. Its EPS stood at Rs 10.96, with net worth per share at Rs 200.81.

Palpa Cement profit falls 59%

Palpa Cement Industries recorded a sharp decline in profitability despite higher revenue.

The company’s net profit fell 59% to Rs 39.9 million from Rs 97.5 million a year earlier.

Operating revenue increased 15.90% to Rs 4.76 billion from Rs 4.11 billion. However, cost of sales rose sharply to Rs 3.99 billion from Rs 3.10 billion.

As a result, gross profit fell to Rs 773.4 million from Rs 1 billion.

Palpa Cement has paid-up capital of Rs 3.75 billion and other equity of Rs 1.09 billion. Its EPS stood at Rs 1.23, while net worth per share was Rs 129.15.

Cost control emerges as key issue

The combined results indicate that Nepal’s listed cement manufacturers continued to expand sales, but profitability remained highly sensitive to production costs and operating efficiency.

The five companies increased their combined revenue by Rs 2.30 billion during the year, while their cost of sales increased by nearly Rs 1.38 billion.

Sarbottam and Sonapur recorded profit growth, while Shivam and Palpa saw their earnings decline. Ghorahi continued to report a loss, although its deficit narrowed significantly.

The results suggest that higher sales alone may not be enough to sustain profit growth in Nepal’s cement industry. Capacity utilisation, cost control, pricing power and operational efficiency are likely to remain critical factors for the sector’s earnings outlook.