Yashoda Foods, a popular instant noodle manufacturer, has seen a sharp rise in revenue over the past few years, driven by increased production capacity and product diversification.

According to a credit rating report issued by Care Rating Nepal, the company's operating income jumped by 18.45 percent to Rs 5.869 billion in Fiscal Year 2023/24. The report was prepared as part of the company’s effort to secure a loan of Rs 2 billion. Notably, Yashoda Foods had already generated Rs 5.2 billion in operating income within the nine first month of the current fiscal year, 2024/25.

The company’s growth trajectory has been strong. In FY 2021/22, its revenue reached Rs 3.432 billion—an increase of nearly 71 percent compared to the previous fiscal year. The Nepal Rastra Bank mandates credit ratings for companies seeking loans of over Rs 500 million from banks and financial institutions.

Established in 2017, Yashoda Foods has been expanding rapidly. The report highlights a 1.5-fold increase in snack sales last fiscal year, reflecting robust market demand. The company has also broadened its product line, launching cheese balls, potato crackers, potato sticks, onion rings, millet-based snacks, roasted butter, white chips among others—all under the same brand.

Located in Tilottama-15 of Rupandehi district, the company’s factory operated at a capacity utilization rate of 69.19 percent in FY 2023/24. While instant noodles still dominate production, their share dropped from 79 percent in FY 2022/23 to 75 percent last year, as the company pushed diversification.

In July, Yashoda Foods merged with its fully owned subsidiary, Yashoda Noodles and Snacks Pvt. Ltd. The merger has expanded production capacity, with partial operations of the subsidiary’s facility beginning in August. Full operations are expected by 2026.

The company uses a variety of domestic ingredients, including gundruk, timur, akbare chillies, millet, buckwheat, and all-purpose flour. However, the report notes that around 79 percent of the company’s revenue is spent on raw materials—meaning fluctuations in input costs could impact profitability.

While 90 percent of Yashoda Foods’ income comes from the domestic market, exports are gradually increasing, with 10 percent of revenue now coming from international sales, including to India.