. Kailash Helicopter Service Limited, which is preparing to launch a preliminary public offering (IPO), has seen a significant decline in its earnings in the first nine months of the current fiscal year.
The company’s operating income declined by 26 percent to Rs 394 million compared to the same period last year.
ICRA Nepal has reassigned Triple ‘B’ rating to the company following its review of the company’s credit rating. Along with this, the ‘Watch with Developing Implications’ category imposed on the company has also been removed.
According to ICRA, although the protests and unrest in September 2025 had an impact on the tourism sector, its financial impact was limited to the company’s overall creditworthiness.
ICRA has rated the company’s debt-free capital structure, strong liquidity position and expectations that the capital base will be further strengthened by the proposed IPO.
However, the company’s operating profit margin (OPM) has also come under pressure due to a decrease in flight hours and a decline in revenue per flight hour following the strike.
The operating profit margin fell from 42 percent in 2025 to 35 percent in the first nine months of the current fiscal year.
The company had posted a net profit of Rs 81.
70 crore in FY2025. It earned Rs 79.40 crore in 2024, Rs 70.20 crore in 2023 and Rs 40.40 crore in 2022. Although the business has expanded in recent years, the current decline has added to the company’s operational challenges.
Established in 2017 and incorporated into a public company in 2023, KHSL is one of the leading rotor-wing (helicopter) service providers in Nepal.
The airline currently has three Airbus helicopters in operation. Its main business is chartered flights, rescue, sling operations, adventure tours and cargo services.
Adventure tourism accounts for about 50 percent of the company’s revenue structure.
Of this, 48 percent of the income comes from flights from Everest Base Camp and 2 percent from Annapurna Base Camp. According to the company, around 30 percent of its revenue comes from rescue operations and 20 percent from cargo service.
According to ICRA, about 58 percent of the company’s total revenue in 2025 came from the top 10 customers.
This indicates that the company’s revenue is focused on a limited number of destinations and customers. Due to the high dependence on tourism, rescue and cargo services, there is also a risk of impact on income due to various factors such as social unrest, adverse weather conditions or travel restrictions. The increase in the price of aviation turbine fuel, foreign currency fluctuations and maintenance costs of helicopter parts have also been pointed out as major risks affecting the company’s profitability. According to ICRA, Nepal’s remote geographical location, weather-related challenges and limited availability of skilled manpower will also increase the operational risk.
But the company’s financial position remains strong. As of mid-April 2026, the company is fully debt-free, working capital requirements are under control and working capital loan facility of Rs. 81 million is yet to be utilized.
The current
paid-up capital of the company stands at Rs 34.70 crore. The chairman and managing director of the company jointly own 40 percent of the company. The company plans to expand its business by raising additional capital through the proposed IPO. According to ICRA, the company’s ability to revive its operating income and profit levels in the coming days and the ability to raise capital on time through IPOs will be the main monitoring point of the rating.
प्रतिक्रिया दिनुहोस्
