Lumbini Cable Car revenue reached 12.30 crore in FY 2081/82
20th April 2026, Kathmandu
Lumbini Cable Car Limited, an ambitious project promoted by the IME Group, is integrating leisure and religious destinations.
Lumbini Cable Car revenue
In a relatively short period since its inception, the company has reported a robust financial performance, demonstrating the high demand for modern transport solutions in hilly terrains. According to recent data from ICRA Nepal, the Lumbini Cable Car revenue for the fiscal year 2081/82 reached 12.30 crore, showcasing its role as a key player in the provincial economy.
Operating from the gateway city of Butwal in Rupandehi to the serene heights of Basantapur in Palpa, the cable car has become a vital link for both pilgrims and adventure seekers. Since its commercial launch on May 29, 2023, the project has consistently contributed to the vibrancy of Lumbini Province. While the company recorded a slightly higher revenue of 13.30 crore in the previous fiscal year of 2080/81, the current earnings remain strong, especially considering the broader economic fluctuations in the region. The project is backed by an influential group led by Chandra Prasad Dhakal, the President of the Federation of Nepalese Chambers of Commerce and Industry, ensuring a high level of professional management and strategic vision.
Expanding the Horizon: A 2.25 Billion Five Star Hotel
Building on the success of the cable car service, the company is now moving forward with an even more ambitious plan to develop an integrated tourism destination at the upper station in Basantapur. This plan includes the construction of a world class five star hotel with an estimated investment of 2.25 billion. Currently in the initial design phase, the project aims to provide luxury accommodation options in an area that was previously difficult to access. To finance this massive undertaking, the company is engaging in discussions with various banks and financial institutions for loan investments. Furthermore, there are plans to raise additional capital through an upcoming Initial Public Offering, allowing the general public to become stakeholders in this landmark tourism project.
Advertisement
Lumbini Cable Car Limited has been proactive in managing its financial health to ensure long term sustainability. One of the key moves was the issuance of rights shares worth 57.70 crore, the proceeds of which were used to prepay 23 crore in existing loans. This strategic debt reduction has significantly improved the company’s balance sheet. Moreover, the business maintains an impressive operating profit margin of approximately 50 percent. This level of profitability is considered exceptionally strong in the business world, providing the company with the financial cushion needed to navigate challenges and invest in future growth.
Navigating Challenges and Competition
Despite the positive financial indicators, the company is not without its hurdles. In 2025, there was a recorded 26 percent decline in passenger flow, which had a direct impact on revenue growth. This decline can be attributed to several factors, including increasing competition from well equipped hotels in the Butwal and Bhairahawa regions. Additionally, the execution of a 2.25 billion hotel project carries inherent risks, such as large capital requirements and the need for timely completion. Managing these financing needs while maintaining service quality will be critical for the company’s long term success in a competitive market.
The destination itself, accessible via a breathtaking ten minute cable car ride, is rapidly emerging as a premier religious tourism hub. The upper station at Basantapur is home to several significant landmarks, including the Kamakhya Devi Temple and the century old Bhagwati Temple. These sites are major attractions for both domestic travelers and Indian tourists who cross the border in search of spiritual solace. The presence of the Shiv Vahan Nandi statue adds to the religious appeal, making it a comprehensive destination for those on a pilgrimage. This steady stream of religious tourists provides a consistent base for the Lumbini Cable Car revenue and justifies the investment in high end hospitality services.
Looking ahead, ICRA Nepal has reaffirmed the company’s rating at B plus, a reflection of its stable financial position and the extensive experience of its promoters. The IME Group already has a proven track record with successful projects like the Chandragiri Cable Car in Kathmandu and the Maulakali Cable Car in Gaindakot. This experience is expected to play a vital role in ensuring that the Lumbini project delivers sustainable returns. By integrating transport, religion, and luxury hospitality, the company is not just building a business; it is enhancing the entire tourism infrastructure of Nepal. As the hotel project moves from design to construction, the region of Palpa is set to become one of the most sought after destinations in the country, further boosting the potential for long term investor value.
For More: Lumbini Cable Car revenue
