Ghorahi Cement revenue growth reduces Q2 losses
8th February 2026, Kathmandu
Ghorahi Cement Industry Limited has demonstrated a significant shift in its financial trajectory during the second quarter of the fiscal year 2082/83. According to the latest unaudited financial statements for the period ending Poush 2082, the company achieved a revenue growth of 20.19 percent, which played a critical role in narrowing its net losses. While the cement manufacturer remains in a deficit, the latest figures suggest that the company is successfully navigating a high-interest environment and stagnant construction demand to move toward a more sustainable operational model.
Ghorahi Cement revenue growth
The reduction in net loss is a major highlight for the industry, particularly given the challenges faced by large scale manufacturers in Nepal over the last two years. Ghorahi Cement has managed to cut its losses by nearly 57 percent compared to the same period last year, marking a period of effective cost consolidation and market expansion.
Operational Turnaround and Revenue Growth
The most striking improvement in the Q2 report is the transition of the company’s operating performance. In the second quarter of the previous fiscal year 2081/82, Ghorahi Cement faced a daunting operating loss of Rs 33.67 crore. However, for the current review period ending Poush 2082, the company has reported a positive operating profit of Rs 3.907 million. This shift from red to black at the operational level indicates that the company is finally generating enough income from its core activities to cover its production and administrative costs.
Total revenue from product sales climbed to Rs 2.08 billion, a substantial increase from the Rs 1.73 billion recorded in the previous year’s second quarter. This 20.19 percent growth is a testament to the company’s increased market penetration and perhaps a slight uptick in national infrastructure projects. The revenue increase of approximately Rs 350 million was the primary driver that allowed the company to absorb a larger portion of its fixed costs.
Financial Position and Loss Mitigation
Despite the operational success, the bottom line remains impacted by heavy financial expenses, primarily interest payments on long-term loans. The net loss for the first six months of 2082/83 stands at Rs 26.49 crore, which is a marked improvement from the Rs 61.71 crore loss reported in the corresponding period last year.
Net Loss Reduction: Rs 35.22 crore (57% improvement)
Retained Earnings: Rs 68.7 crore (remains in the positive despite recent losses)
Share Premium: Rs 2.65 billion (providing a significant equity cushion)
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Paid-up Capital: Rs 5.02 billion
The company’s annualized earnings per share (EPS) remains in negative territory at Rs -5.27. However, this is a significant recovery from the much deeper negative EPS seen in 2081/82. The net worth per share currently stands at Rs 166.58, indicating that the company still maintains a strong intrinsic value despite the current earnings pressure.
Strategic Outlook and Market Challenges
Ghorahi Cement, a subsidiary of the Triveni Group, operates as one of the largest integrated clinker and cement manufacturers in Nepal with an annual capacity of over 2 million metric tons. The company’s recent recovery efforts have focused on several key areas:
Energy Efficiency: Leveraging state of the art technology to reduce the cost of clinker production, which is the most expensive part of the cement manufacturing process.
Pricing Strategy: Adjusting product pricing to remain competitive against cheaper imports and smaller local grinders while maintaining the premium image of its Sagarmatha brand.
Debt Restructuring: Utilizing its share premium and capital reserves to manage interest liabilities more effectively.
The industry at large continues to face external risks, including the volatility of raw material prices like coal and the slow pace of government capital expenditure. For Ghorahi Cement to achieve full profitability, it will need to maintain its revenue growth above the 20 percent mark while further reducing its financial overheads.
Conclusion
The Q2 report for FY 2082/83 marks a “recovery milestone” for Ghorahi Cement Industry. The return to a positive operating profit and a 20.19 percent surge in revenue are clear indicators that the company is overcoming the worst of its financial crisis. While the net loss of Rs 26.49 crore shows there is still a long way to go, the narrowing deficit suggests that the company’s turnaround strategy is yielding results. Shareholders and market analysts will be looking toward the third quarter results to see if the company can sustain its operational profit and move closer to a positive net earnings position.
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