Nelco Swings To Profit Of ₹1.09 Crore In Q4, Revenue Rises 17% YoY

Mumbai: Nelco Limited reported a turnaround in consolidated net profit to Rs 1.09 crore in the March quarter of FY26, compared to a loss of Rs 1.19 crore in the December quarter and a loss of Rs 4.08 crore in the year-ago period. Revenue from operations rose 17 percent year-on-year to Rs 79.2 crore, up from Rs 78.3 crore in Q2 and Rs 67.5 crore in Q3 FY25, indicating steady improvement in operating performance.

Strong quarterly recovery

The company’s total income increased to Rs 81.1 crore in Q4 FY26 from Rs 78.9 crore in the preceding quarter and Rs 70.2 crore a year ago. Profit before tax stood at Rs 1.75 crore versus a loss of Rs 1.73 crore in Q2, reflecting a sequential turnaround. Total expenses rose to Rs 73.7 crore from Rs 70.5 crore in Q2 and Rs 60.9 crore in Q3 FY25, driven by higher operating and employee costs.

Sequential growth builds

On a quarter-on-quarter basis, operating expenses increased to Rs 39.2 crore from Rs 35.0 crore, while employee benefit expenses rose to Rs 13.8 crore from Rs 12.9 crore. Despite cost pressures, improved revenue led to a recovery in margins. Depreciation and finance costs declined sequentially, aiding profitability. The company reported tax expense of Rs 0.66 crore compared to a tax credit in Q2, impacting net earnings movement.

Earnings improve sharply

Net profit improved significantly to Rs 1.09 crore from a loss in both the previous quarter and year-ago period. Earnings per share stood at Rs 0.48 compared to negative Rs 0.52 in Q2 and negative Rs 1.79 in Q3 FY25, reflecting improved bottom-line performance. Other comprehensive income added Rs 0.38 crore, taking total comprehensive income to Rs 1.47 crore for the quarter.

Full-year performance remains muted

For the full year FY26, revenue from operations stood at Rs 306.6 crore compared to Rs 304.9 crore in FY25, showing marginal growth. However, net profit declined to Rs 3.32 crore from Rs 9.53 crore in the previous year. Profitability was impacted by higher expenses and lower operating leverage during the year. The company has recommended a final dividend of Rs 1 per share for FY26.

Disclaimer: This summary is based on audited financial results and is not investment advice.