Jagdamba Hire Purchase Financials Show Strong Growth in FY 2081/82
4th February 2026, Kathmandu
Jagdamba Hire Purchase Limited, a specialized financial institution licensed by Nepal Rastra Bank, has reported a year of robust growth and significantly improved profitability for the fiscal year 2081 2082. According to the audited financial statements released on February 4, 2026, the company successfully doubled its net profit, driven by aggressive loan portfolio expansion and enhanced operational efficiency. As a subsidiary of the Shanker Group, one of Nepal’s largest multidimensional conglomerates, the company has leveraged its corporate lineage to solidify its position in the hire purchase and consumer financing market.
Jagdamba Hire Purchase Financials
The financial results reflect a period of strategic transition, following the company’s name change from Jagdamba Credit and Investment Limited to Jagdamba Hire Purchase Limited in early 2024 to better align with its core business functions.
Profitability and Revenue Streams
The most striking feature of the Jagdamba Hire Purchase financials is the surge in net profit. For the fiscal year ending Ashadh 32, 2082, the company earned a net profit of 44.69 million rupees, a 104 percent increase compared to the 21.91 million rupees recorded in the previous fiscal year.
This profitability was fueled by several key income drivers:
Net Interest Income: Higher lending volumes in the automotive and heavy equipment sectors led to a rise in interest earnings.
Operating Income: Total operating income grew to 151.36 million rupees, up from 120.46 million rupees.
Fee and Commission Income: The company saw increased revenue from loan processing fees and service charges associated with its expanding customer base.
Asset Expansion and Portfolio Quality
The statement of financial position reveals a strong asset base of 1.73 billion rupees. Jagdamba Hire Purchase has focused its capital on high yield hire purchase agreements, particularly for vehicles and industrial machinery, which are essential for Nepal’s recovering construction and transport sectors.
Key asset highlights include:
Core Loan Portfolio: The majority of the 1.73 billion rupees in assets is concentrated in loans and advances to customers.
Asset Quality: Impairment charges showed a declining trend, suggesting that the company’s risk management and credit appraisal processes have become more stringent.
Liquidity Management: The company maintains 30.34 million rupees in cash and cash equivalents, ensuring it can meet its immediate financial obligations and fund new loan disbursements.
Capital Structure and Shareholder Value
Jagdamba Hire Purchase financials indicate a healthy capital adequacy ratio, supported by a solid equity base. The net worth per share has reached 180.57 rupees, providing a strong cushion for depositors and lenders.
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Earnings Per Share (EPS) and Equity:
Basic and Diluted EPS: 14.90 rupees, reflecting efficient use of shareholder capital.
Total Liabilities: 1.19 billion rupees, primarily consisting of borrowings from commercial banks used to fund the lending pipeline.
Statutory Reserves: Consistent allocation to reserves has strengthened the company’s ability to withstand potential economic shocks.
Operational Efficiency and Cost Control
The company has demonstrated an ability to scale its operations while keeping overheads in check. Personnel expenses and administrative costs remained proportionate to the growth in income. This disciplined approach to cost management allowed a larger portion of the operating income to flow down to the bottom line as net profit.
The decline in impairment charges is particularly noteworthy, as it suggests that the company is successfully navigating the challenges of credit risk in a competitive market where interest rates have shown some volatility.
Market Outlook and Strategic Positioning
As a member of the Shanker Group, Jagdamba Hire Purchase benefits from a captive market, providing financing for the groups diverse interests in automotive (Jagdamba Motors) and construction materials. This synergy allows the company to offer competitive “one stop” financing solutions for buyers of commercial vehicles and heavy machinery.
Looking ahead to the remainder of 2082 and 2083, the company is well positioned to capitalize on:
Economic Recovery: Increased demand for hire purchase loans as infrastructure projects in Nepal regain momentum.
Digital Integration: Potential for adopting fintech solutions for loan applications and payment collections to further reduce operational costs.
Diverse Funding: Strengthening relationships with commercial banks to ensure a steady supply of low cost capital for lending.
Conclusion
The Jagdamba Hire Purchase financials for 2081 2082 depict a company in a strong growth phase. With profit doubling and assets reaching 1.73 billion rupees, JHPL has proven its resilience and strategic clarity. For stakeholders and potential investors, the improvement in EPS to 14.90 rupees and a net worth per share of 180.57 rupees signal that the company is managing its capital effectively while expanding its footprint in Nepal’s specialized lending sector.
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