KATHMANDU: The combined net profit of 17 manufacturing and processing companies listed on the Nepal Stock Exchange (NEPSE) rose 70.34% in the last fiscal year. Their combined net profit increased from Rs3.97 billion in the previous fiscal year to Rs6.77 billion.

However, the improvement does not reflect broad-based growth across the sector. Bottlers Nepal (Balaju) and Bottlers Nepal (Terai) moved from losses to profits, significantly lifting the overall figure.

Seven companies reported higher profits, while five posted declines. Two companies moved from losses to profits, one reduced its loss, and two slipped from profit into losses.

Sonapur Minerals recorded the highest growth, with net profit surging 614.19% to Rs337.1 million. Himalayan Distillery’s profit rose 28.14% to more than Rs1.2 billion, while Nepal Lube Oil posted a 23.04% increase to Rs55 million.

Shrinagar Agritech Industries, Sarbottam Cement, Everest Color and SY Panel Nepal reported profit growth of 12.66%, 7.70%, 4.25% and 1.20%, respectively.

Bottlers Nepal (Balaju) swung from a loss of more than Rs400.1 million to a profit of over Rs878.3 million. Bottlers Nepal (Terai) also turned around from a loss of more than Rs613.9 million to a profit exceeding Rs659.2 million.

Five companies see profits decline

Palpa Cement recorded the sharpest decline, with profit falling 59.08% to Rs39.9 million. Unilever Nepal’s profit dropped 20.05% to Rs1.58 billion.

Reliance Spinning Mills reported a 16.14% decline in profit to Rs399 million, while Sarbottam Paints and Shivam Cement saw their profits fall 11.40% and 1.72%, respectively.

Despite the decline, Unilever Nepal remained the most profitable company in the group by absolute profit, followed by Himalayan Distillery and Sarbottam Cement.

Ghorahi Cement reduced its net loss by 44.43%, from Rs554.3 million to Rs308 million, but remained in the red.

Meanwhile, Sagar Distillery and Om Megashree Pharmaceuticals slipped from profit into losses. Sagar posted a loss of more than Rs572 million, while Om Megashree reported a loss exceeding Rs377 million.

The figures show that although the manufacturing and processing sector recorded strong overall profit growth, company-level performance remained uneven, reflecting differences in market demand, costs and operational efficiency.