Nelco's Q1 net profit slumps over 60 pc, expenses rise 8.5 pc

Mumbai, July 14 (IANS) Tata Group-backed Nelco Limited on Monday reported a sharp decline in its consolidated net profit year-on-year (YoY) for the first quarter (Q1) of FY26, with profits plunging 60.52 per cent to Rs 1.80 crore, compared to Rs 4.56 crore in the same period previous year (Q1 FY25).

Profit before tax (PBT) also dropped significantly by 60.70 per cent to Rs 2.40 crore during the quarter, according to its stock exchange filing.

Total expenses rose by 8.56 per cent to Rs 67.05 crore from Rs 61.76 crore a year ago, driven largely by a 15.67 per cent jump in the purchase of stock-in-trade, which reached Rs 6.42 crore.

Operating performance was also under pressure. EBITDA (earnings before interest, taxes, depreciation and amortisation) declined 36 per cent YoY to Rs 7.8 crore from Rs 12.2 crore in Q1 FY25.

As a result, the company’s operating margin contracted sharply to 10.4 per cent from 16.5 per cent in the same quarter previous year.

However, the company's revenue from operations slightly rose to Rs 74.79 crore, compared to Rs 74.08 crore.

Additionally, the company’s total income grew marginally by 1.57 per cent YoY to Rs 75.36 crore in Q1 FY26.

Following the earnings announcement, Nelco shares closed 5.28 per cent or Rs 50 lower on Monday at Rs 897 on the National Stock Exchange (NSE).

The stock has fallen over 20 per cent in the past one month and is currently down over 40 per cent from its recent high of Rs 1,502.

Nelco, established in 1940 and now a part of Tata Power, focuses on satellite-based communication services.

It offers VSAT connectivity, Satcom project implementation, and integrated security and surveillance solutions for enterprise and government clients.

The company holds key licenses such as VSAT, ISP, and IFMC, and caters to sectors like banking, oil and gas, education, and renewable energy.

--IANS

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