Kathmandu. Himalayan Builders and Engineers Pvt. Ltd. HBE Inc. (HBE) has shown an improvement in its financial performance in recent years. Established in 1985, the company focuses on private sector projects.

According to ICRA Nepal’s report, the operating income from operations has increased from Rs 1.53 billion in 2021 to Rs 1.87 billion in 2025. In the first six months of the current fiscal year 2026, it has earned Rs 65.60 crore. The OPBDITA margin, an indicator of profit, has also been gradually improving. The index rose from 4.5 per cent in 2021 and 2022 to 6.5 per cent in 2025 and 7.5 per cent in the first half of the current year.

However, the company’s external liabilities to net worth ratio has been declining, indicating that financial risks are declining. This ratio has dropped from 3.5 times in 2023 to 3.0 in 2025 and 1.7 in the first six months of 2026. Similarly, the working capital index has also improved. Net working capital has increased from 32 percent in 2021 to 2 percent in the first six months of 2026. The current ratio has also increased from 0.9 to 1.2. The company, which has worked with clients such as banks, hospitals, hotels and educational institutions, has been expanding its presence in residential and commercial building construction, design, build and renovation services.

However, the company’s revenue assurance is weakening. By mid-2025, the order book will be limited to about 0.9 times annual revenue, up from 1.1 times the previous year. Short project duration, limited geographical expanse and competitive market have put pressure on the acquisition of new work. According to the report, there are some challenges on the liquidity side as well. The net working capital is limited to -4 percent and the external liabilities to net worth ratio is about 3 times. Cash reserves have been depleted due to higher dividend distributions (about 80 per cent), which could add to liquidity pressures in the future.

Meanwhile, the company’s audit report has pointed out that it has not followed the rules related to employee facilities and violated the Nepal Accounting Standards on Recognition of Income. This has shown the risk of creating potential liability.