Khajuriko Nepal Pvt. Ltd., the company behind the well-known biscuit and confectionery brand “Khajuriko,” has intensified its market expansion strategy, resulting in steady growth in business performance. Recent financial data show notable improvements in both revenue and capital structure.
In the fiscal year 2024/25, the company recorded nearly 20 percent growth in turnover, reaching NPR 2.045 billion. Over the past five years, Khajuriko’s business has maintained a consistently upward trend. The company posted revenues of NPR 1.286 billion in 2021, NPR 1.64 billion in 2022, NPR 1.701 billion in 2023, and the same level in 2024.
This growth momentum has further accelerated in the first four months of the ongoing fiscal year 2025/26, during which the company achieved a 32 percent increase compared to the same period last year.
However, fluctuations in raw material prices have put pressure on operating profitability. The operating profit margin declined from 18 percent in 2024 to 12 percent in 2025.
Despite this, the company has significantly improved its capital structure. The debt-to-net-worth ratio, which stood at 4.0 times in 2023, improved to 1.59 times by 2025. This improvement was largely driven by an additional equity infusion of NPR 150 million.
Reflecting the stronger financial position and solid market presence, credit rating agency ICRA Nepal upgraded Khajuriko’s credit rating. The long-term loan rating for NPR 1.2697 billion was upgraded from LB+ to LBB, while the short-term loan rating of NPR 230.3 million was maintained at A4.
ICRA Nepal has also removed the company from its list of non-cooperative entities after Khajuriko provided the required information and disclosures.
Nonetheless, some financial and operational challenges remain. Due to high principal repayment obligations relative to cash flow, the debt service coverage ratio declined to 0.94 times in 2025 from 1.37 times in 2023, indicating some liquidity pressure.
Additionally, around 78 percent of the company’s total revenue is generated from just two key products, highlighting product concentration risk. Intense competition from domestic and multinational brands, along with international price volatility of key raw materials such as wheat, sugar, and palm oil, could also impact profitability.
Founded in 1995 as a small proprietorship firm and incorporated as a company in 2004, Khajuriko Nepal Pvt. Ltd. currently operates manufacturing facilities in Lalitpur, Chitwan, and Makwanpur. The company produces biscuits, cookies, and puffs, which are marketed nationwide under the “Khajuriko” brand.
