Nelco's Q1FY26 net profit slumps over 60%, expenses rise 8.5%
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% to ₹1.80 crore, compared to ₹4.56 crore in the same period previous year (Q1 FY25).
Profit before tax (PBT) also dropped significantly by 60.70% to ₹2.40 crore during the quarter, according to its stock exchange filing.
Total expenses rose by 8.56% to ₹67.05 crore from ₹61.76 crore a year ago, driven largely by a 15.67% jump in the purchase of stock-in-trade, which reached ₹6.42 crore.
Operating performance was also under pressure. EBITDA (earnings before interest, taxes, depreciation and amortisation) declined 36% YoY to ₹7.8 crore from ₹12.2 crore in Q1 FY25.
As a result, the company's operating margin contracted sharply to 10.4% from 16.5% in the same quarter previous year.
However, the company's revenue from operations slightly rose to ₹74.79 crore, compared to ₹74.08 crore.
Additionally, the company's total income grew marginally by 1.57% YoY to ₹75.36 crore in Q1 FY26.
Following the earnings announcement, Nelco shares closed 5.28% or ₹50 lower on Monday at ₹897 on the National Stock Exchange (NSE).
The stock has fallen over 20% in the past one month and is currently down over 40% from its recent high of ₹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.
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