Nelco Q1 FY27 Results: Net Profit Surges 115% Sequentially to ₹234 Lakhs on Strong Operational Efficiencies

Tata Group's satellite communication (SatCom) and enterprise network solutions provider, Nelco Limited (NSE: NELCO; BSE: 504112), today announced its unaudited consolidated financial results for the first quarter of fiscal year 2027 ended June 30, 2026. The company delivered a powerful sequential bottom-line performance alongside steady year-on-year (YoY) operational growth, driven by expansion across its digital connectivity portfolios and an exceptional item tailwind.

Income Architecture and Top-Line Progress

Nelco continued to scale up its network footprint and satellite bandwidth deployments across maritime, aero, and enterprise verticals during the quarter:

Income from Operations: Settled at ₹8,003 lakhs for Q1 FY27, registering a steady 7.0% year-on-year (YoY) increase against the ₹7,479 lakhs reported in the corresponding period last fiscal year. Sequentially, operational revenue grew by 1.1% compared to ₹7,918 lakhs in Q4 FY26.

Total Income: Aggregated to ₹8,017 lakhs, inclusive of other minor corporate earnings of ₹14 lakhs.

Profitability Jump and Shareholder Metrics

The company achieved excellent bottom-line traction, driven by reduced net tax outflows and write-back gains:

Net Profit for the Period: Surged 114.7% sequentially to ₹234 lakhs for Q1 FY27, up significantly from ₹109 lakhs logged in the immediate preceding quarter ended March 31, 2026. On a year-on-year basis, net profit advanced by 30.0% YoY against the ₹180 lakhs registered in the base quarter of the last fiscal year.

Total Comprehensive Income: Concluded at ₹269 lakhs, supported by positive remeasurement gains of ₹35 lakhs on post-employment benefit plans.

Earnings Per Share (EPS): Basic and diluted EPS for the quarter advanced to ₹1.02 per share (face value of ₹10 each), marking a robust recovery from ₹0.48 sequentially and ₹0.79 in Q1 FY26.

Dividend Announcement: The board reinforced its shareholder payout commitment by executing a final dividend of ₹1.00 per equity share (10% on a par value of ₹10 each).

Expenditure Controls and Operational Matrix

Higher deployment velocities across digital setups required balanced outlays for transponder capacity and hardware:

Total Expenses: Stood at ₹7,171 lakhs for Q1 FY27, compared to ₹6,705 lakhs YoY and ₹7,365 lakhs sequentially.

Operating Expenses: The largest operational cost block rose to ₹3,788 lakhs, up from ₹3,384 lakhs in Q1 FY26, matching the company's expanding satellite network capabilities.

Inventory & Trading Stock: Purchase of stock-in-trade fell to ₹293 lakhs from ₹642 lakhs YoY, which was accompanied by an inventory configuration change of ₹395 lakhs.

Personnel & Administration Costs: Employee benefit obligations shifted up to ₹1,324 lakhs from ₹1,192 lakhs YoY. Other corporate expenses grew to ₹1,371 lakhs compared to ₹1,119 lakhs in the year-ago base quarter.

Finance & Depreciation: Capital asset depreciation outlays stood at ₹512 lakhs, while financing charges rose to ₹127 lakhs.

Strategic Exceptions and Tax Framework

Nelco's profit before exceptional items and tax was positioned at ₹207 lakhs. The bottom line was significantly boosted by an exceptional gain of ₹106 lakhs recognized during the quarter under review, driving final Profit Before Tax (PBT) up to ₹313 lakhs. Total tax expenses stood optimized at ₹66 lakhs, significantly aided by a deferred tax credit of ₹156 lakhs which balanced out a current tax provision of ₹235 lakhs.

The company maintains a steady equity cushion, with its paid-up equity share capital base remaining flat at ₹2,282 lakhs divided into equity shares of ₹10 each. Its long-term other equity liquid reserves stood solidly at ₹10,600 lakhs as of the trailing full-year audit.

Shares of NELCO Limited was last trading in BSE at Rs. 865.70 as compared to the previous close of Rs. 867.65. The total number of shares traded during the day was 18772 in over 1047 trades.

The stock hit an intraday high of Rs. 887.95 and intraday low of 841.00. The net turnover during the day was Rs. 16093255.00.

Source : Equity Bulls

Keywords

NELCO INE045B01015 Q1FY27 Q1FY2027 ResultUpdate