Nelco Reports 4% Revenue Growth In Q3 FY26, Posts ₹119 Lakh Loss On Labour Code Hit

Mumbai: Nelco Ltd, a Tata Group company offering satellite communication services, reported a consolidated net loss of Rs 119 lakh for the third quarter ended December 31, 2025, reversing from a profit of Rs 162 lakh in the previous quarter. The dip was mainly due to a one-time expense arising from changes in labour laws.

Revenue inches up sequentially

Nelco’s total income rose to Rs 7,888 lakh in Q3 FY26 from Rs 7,561 lakh in the September quarter. This reflects a mild quarter-on-quarter growth of 4.3 percent, driven by steady operational income from its network services business.

Exceptional cost dents profit

Despite maintaining operating margins, Nelco posted a loss before tax of Rs 173 lakh due to an exceptional item of Rs 381 lakh. This was attributed to the estimated cost impact of India’s new Labour Codes, which the company recognized upfront in the quarter. Without this, pre-exceptional profit before tax stood at Rs 208 lakh.

Management explains hit

Managing Director and CEO P.J. Nath said the cost provision for labour regulation changes was made conservatively as per guidance from accounting standards. He added that Nelco continues to monitor updates on the final implementation of these codes and will adjust as required.

Nine-month performance remains stable

For the April–December 2025 period, Nelco posted a net profit of Rs 223 lakh, down from Rs 1,361 lakh a year ago. Revenue for the same period stood at Rs 22,985 lakh versus Rs 23,989 lakh in the previous year, reflecting flat performance amid macro headwinds. Earnings per share for the nine months came in at Rs 0.98, compared to Rs 5.96 in the previous year.

Nelco’s Q3 results reflect a one-off regulatory adjustment, while its operational performance remained steady.

Disclaimer: This article is based on unaudited financial results filed with stock exchanges and does not constitute investment advice.