NELCO Q2 FY27: PAT ₹234 Cr & Rev ₹8,017 Cr

Investor Takeaways

Revenue of ₹8,017 lakhs ([amount not verified]) reported for Q1 FY2026, up from ₹74.08 Cr in Q1 FY24.

Net profit of ₹234 lakhs ([amount not verified]) for Q1 FY2026, compared to ₹4.56 Cr in Q1 FY24.

OPM of 15.09% in Q3FY25, with EPS of ₹2.17, indicating recent margin and profitability trends.

Reappointment of P.D.Dani & Associates as Cost Auditors for FY2026-27 confirmed by Board.

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	[amount not verified]	+8.2% (Q1 FY24: ₹74.08 Cr)
Net Profit	[amount not verified]	-48.7% (Q1 FY24: ₹4.56 Cr)
EBITDA	Not available	N/A
EPS	[amount context mismatch]	-4.6% (Q3FY25: [amount context mismatch] vs Q2FY25: [amount not verified])
OPM	15.09% (Q3FY25)	Down from 18.04% (Q4FY24)

What Changed

The filing reports unaudited consolidated financial results for Q1 FY2026, showing revenue of ₹8,017 lakhs ([amount not verified]) and net profit of ₹234 lakhs ([amount not verified]). This represents an 8.2% year-on-year increase in revenue but a significant 48.7% decline in net profit compared to ₹4.56 Cr in Q1 FY24. The drop in profitability appears to be driven by margin compression, as operating profit margin (OPM) declined to 15.09% in Q3FY25 from 18.04% in Q4FY24. EPS stood at ₹2.17 in Q3FY25, reflecting the current earnings trajectory. The company also announced the reappointment of P.D.Dani & Associates as Cost Auditors for FY2026-27, ensuring continuity in audit oversight. However, no new financial targets, growth projections, or strategic initiatives were disclosed in the filing. The reappointment is a routine governance update and does not alter the company’s financial outlook or performance expectations for investors.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
NELCO	77.77	Not available	Not available	1,533.17
TCS	17.17	50.36%	67.57%	8,19,135.01
Infosys	16.55	29.19%	40.82%	4,53,824.26
HCLTech	18.64	23.63%	31.85%	3,07,349.71

NELCO trades at a significantly higher P/E multiple compared to its peers, suggesting market expectations may be priced at a premium. However, peer data on ROE and ROCE is not directly comparable due to missing metrics for NELCO. The company’s market capitalization is substantially smaller than the large-cap peers, indicating a different scale and potentially higher volatility.

Risks & Concerns

Net profit declined sharply by 48.7% YoY despite revenue growth, signaling margin pressure.

OPM has been trending downward from 18.04% (Q4FY24) to 15.09% (Q3FY25), indicating potential cost or pricing pressures.

High P/E ratio of 77.77 suggests the stock may be overvalued relative to earnings and peers.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	80.72	4.95	15.09
Q2FY25	82.55	4.10	13.13
Q1FY25	74.08	4.56	16.63
Q4FY24	81.61	6.10	18.04

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About NELCO Limited (NELCO)

Information Technology · IT - Hardware · Listed on NSE

Market Cap: ₹1,533.17 Cr P/E: 77.8

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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