Kathmandu: Bhagawati Steel Industries, a long-established player in Nepal’s steel fabrication sector, has reported a steep 46 percent drop in revenue for 2025, with turnover falling to just Rs 1.67 billion from Rs 3.13 billion in 2024 and a healthier Rs 3.58 billion in 2023.
The company blamed sharply lower sales of finished products and extremely weak demand, with plant utilization crashing to a mere 14 percent of capacity in the last fiscal year, down from 33 percent in 2024.
The 59,000-metric-ton facility, which produces pipes, sheets, window and door frames, shutter profiles, trusses, poles, and telecom towers, has been running far below potential amid a prolonged slowdown in construction and infrastructure spending.
Net profit also took a heavy blow, shrinking to Rs 6 million from Rs 48 million the previous year. A notable shift in product mix saw telescopic and tubular poles – once the backbone of revenue at 70 percent in 2024 – fall to just 40 percent of total sales, reflecting reduced orders from the telecom and power transmission sectors.
Founded in 1991 and chaired by Sumit Kumar Agarwal with a compact three-member board, Bhagwati Steel has secured fresh credit ratings totalling Rs 2.32 billion for long- and short-term banking facilities (Rs 97.2 million long-term and Rs 2.23 billion short-term), signalling that lenders still see viability despite the sharp downturn.
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