City Express Money Transfer Operating Income Declines 32 Percent, Secures A2 Plus Rating for NPR 1 Billion Debt

27th October 2026, Kathmandu

City Express Money Transfer Private Limited has experienced a significant contraction in its operating revenue over a four-year period, driven by intensifying competition in the remittance sector, regulatory restrictions on domestic money transfers, and a structural shift toward direct bank account deposits.

City Express Operating Income Declines

Operating Revenue Contraction and Income Composition

According to an Infomerics Credit Rating Nepal Limited evaluation report, the remittance company’s operating performance has faced persistent margin pressure.

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• Four-Year Revenue Drop: Operating income declined by 32.1 percent from NPR 826 million in the fiscal year 2078/79 down to NPR 561 million in the fiscal year 2082/83.
• Annual Revenue Trajectory: Income fell to NPR 768 million in 2079/80, NPR 664 million in 2080/81, and NPR 567 million in 2081/82, before stabilizing near NPR 561 million in 2082/83.
• Revenue Composition Shift: Commission income accounts for approximately 26 percent of total operating revenue in 2082/83, while foreign exchange gains constitute the remaining 74 percent, highlighting increased reliance on currency conversion earnings.
• Profitability Metrics: Earnings before interest, tax, depreciation, and amortization (EBITDA) margin recovered to 27.65 percent in 2082/83, up from a low of 23.79 percent in 2081/82, though remaining below the 36.38 percent peak recorded in 2079/80.
• Debt Coverage Indicators: The debt service coverage ratio stood at 4.29 times and the interest coverage ratio at 4.0 times in 2082/83, reflecting pressure from rising financial costs compared to the previous year.

Market Position, Shareholding, and Credit Rating

Despite top-line pressures, City Express maintains an established footprint across the domestic remittance ecosystem.

• Market Share and Network: Established on July 11, 2007, the company commands approximately a 14 percent market share of inward remittances to Nepal, operating through a network of over 25,000 agents nationwide.
• Capital Structure and Promoters: Paid-up capital stood at NPR 500 million as of mid-July 2083. Promoters Dolraj Sharma, Chandra Tandan, Hem Bahadur Gurung, and Mahesh Kumar Shrestha each hold 20 percent stakes, alongside Sunil Pani Gautam (15.50 percent) and Krishna Raj Poudel (4.50 percent).
• Subsidiary Investments: The company holds strategic equity investments, including NPR 87.2 million in Smart Choice Technologies and NPR 100 million in City Wallet.
• Credit Rating Assignment: Infomerics Credit Rating Nepal assigned an “IRN A2 Plus” rating to the company’s short-term bank loan facilities amounting to NPR 1 billion, supported by its long operating history, extensive agency network, and low leverage profile.

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