Hansraj & Hulas Group Earns Rs 26 Billion in Nine Months, Dividend Payout Reaches 186%

KATHMANDU: Golchha Group’s flagship automotive companies, Hansraj Hulaschand & Company Pvt. Ltd. and Hulas Auto Craft Pvt. Ltd., reported combined operating revenue of nearly Rs 25.98 billion during the first nine months of fiscal year 2025/26 (FY 2082/83).

According to company disclosures, Hansraj Hulaschand generated Rs 16.46 billion in operating revenue, while Hulas Auto Craft posted Rs 9.52 billion, reflecting strong growth in Nepal’s two- and three-wheeler market.

Hansraj Hulaschand Revenue Rises

Established in 1959, Hansraj Hulaschand is Nepal’s authorized distributor of Bajaj, KTM, Triumph motorcycles and Servo lubricants. The company attributed its revenue growth to expanding business operations and lower borrowing costs.

Revenue increased by 46.77 percent compared to the previous fiscal year. The company noted that around 59 percent of total revenue comes from Bajaj’s Pulsar motorcycle range, although it has been diversifying through products such as Triumph motorcycles and the Chetak electric scooter.

Despite higher sales, operating profit margins declined to 4.2 percent during the review period from 5.7 percent a year earlier, reflecting continued pressure on profitability.

The company has a history of strong shareholder returns, distributing 78 percent dividend last year and an impressive 186 percent dividend in the preceding year.

Hansraj Hulaschand currently has outstanding borrowings of Rs 6.22 billion, including Rs 5.93 billion in short-term loans, highlighting the working-capital-intensive nature of the automobile dealership business.

Hulas Auto Craft Posts Strong Growth

Founded in 2013, Hulas Auto Craft operates Bajaj’s two- and three-wheeler assembly facility in Ramgram, Nawalparasi. The company assembles vehicles that are sold exclusively to its sister company, Hansraj Hulaschand.

During the first nine months of FY 2025/26, Hulas Auto Craft recorded Rs 9.52 billion in operating revenue, representing a 77.86 percent increase compared to the previous fiscal year.

The company remains heavily dependent on the Pulsar brand, which accounted for approximately 72 percent of total revenue during the review period.

Hulas Auto Craft distributed 47 percent dividend last year and 75 percent dividend in the preceding year. The company has total borrowings of Rs 3.94 billion, including Rs 3.17 billion in short-term debt.

Key Risks

Both companies face intense competition from major motorcycle brands including Honda, Yamaha, Hero and TVS, many of which now operate local assembly plants in Nepal, increasing pricing pressure in the market.

Hulas Auto Craft also noted that its assembly business relies heavily on imported components and customs-duty incentives. Any future reduction or withdrawal of government tariff concessions could increase costs and affect profitability.

The performance underscores the continued strength of Nepal’s automotive sector, with the Golchha Group maintaining a dominant position in the country’s motorcycle distribution and assembly market despite rising competition and margin pressures.