NELCO LimitedQ1 FY27 Results & Financial Update
NELCO Limited: Q1 FY27 consolidated results and company financials – revenue ₹80.03 Cr, PAT ₹2.34 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
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Quarterly Results AnalysisExplore NELCO Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
NELCO Limited reported consolidated income from operations of INR 80.03 crore for the quarter ended June 30, 2026, alongside total income of INR 80.17 crore after accounting for other income of INR 0.14 crore.
Total expenses for the quarter stood at INR 71.71 crore, driven by operating expenses of INR 37.88 crore, employee benefits expenses of INR 13.24 crore, and other expenses of INR 13.71 crore, alongside inventory changes and purchases of stock-in-trade.
Profit before finance cost, depreciation, amortisation, share of profit from associate, exceptional items, and tax was recorded at INR 8.46 crore.
Finance costs for the quarter were INR 1.27 crore, while depreciation and amortisation expenses stood at INR 5.12 crore, resulting in a profit before exceptional items and tax of INR 2.07 crore.
The quarter's financial results include an exceptional item credit of INR 1.06 crore, reflecting the reversal of provisions for retirement benefits following the completion of payroll restructuring to align with the new Labour Codes notified by the Government of India.
After accounting for the exceptional item, profit before tax was INR 3.13 crore. Total tax expenses for the period stood at INR 0.79 crore, comprising current tax of INR 2.35 crore offset by a net deferred tax credit of INR 1.56 crore.
Consolidated net profit for the period reached INR 2.34 crore, yielding a basic and diluted earnings per share of INR 1.02 for the quarter (not annualised). Total comprehensive income for the period was reported at INR 2.69 crore after including remeasurement gains on post-employment benefit obligations.
On a standalone basis, NELCO reported income from operations of INR 54.81 crore and a net profit of INR 3.80 crore for the quarter ended June 30, 2026, supported by an exceptional item reversal of INR 0.94 crore related to the same payroll restructuring exercise.
01 · Business model
What does NELCO do?
NELCO Limited is a part of the Tata group and operates as a specialized provider of network systems and satellite communication services. The company delivers connectivity and network solutions primarily to enterprise customers across various industry verticals in India.
The company's primary operating revenue is derived from providing network systems and related communication services. Operations are conducted through its holding company, subsidiary Nelco Network Products Limited, and associate Piscis Networks Private Limited, collectively focusing on network integration and VSAT connectivity.
NELCO evaluates its operational structure under a single reportable segment, designated as Network Systems, encompassing all communication services, hub operations, and allied network infrastructure offerings.
The company's business model hinges on recurring service revenues from enterprise connectivity, VSAT hardware deployment, and managed network solutions tailored for remote and mission-critical enterprise applications.
02 · Historical context
What shaped the business before this quarter
On November 21, 2025, the Government of India notified four Labour Codes, leading to an initial incremental impact and exceptional provision of INR 3.81 crore at the consolidated level during fiscal 2026.
For the financial year ended March 31, 2026, the holding company paid a final dividend of INR 1.00 per equity share (10%), which was approved by shareholders at the Annual General Meeting held on June 24, 2026.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹80.03 Cr |
| Total income | ₹80.17 Cr |
| Profit before tax | ₹3.13 Cr |
| Profit after tax | ₹2.34 Cr |
| EPS | ₹1.02 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 2.9% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 3.9% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹0.14 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Income from operations reached INR 80.03 crore for Q1 FY27, reflecting enterprise network service delivery across its consolidated customer base.
Other income contributed INR 0.14 crore to the consolidated top line during the quarter.
What drove margins
Operating expenses formed the largest cost component at INR 37.88 crore, followed by other expenses at INR 13.71 crore and employee benefits expenses at INR 13.24 crore.
Depreciation and amortisation expenses stood at INR 5.12 crore, while finance costs accounted for INR 1.27 crore during the quarter.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The Group evaluates key financial parameters and operates in a single reportable segment, specifically Network Systems, with all financial results reported under this classification.
06 · Reported developments
What changed operationally
The company completed its payroll restructuring process to align with the new Labour Codes, resulting in the reversal of retirement benefit provisions amounting to INR 1.06 crore on a consolidated basis (INR 0.94 crore standalone) recognized as an exceptional item.
07 · Beyond the numbers
What changed beyond the numbers
Reported update
Cost Auditor Reappointment
The Board of Directors approved the reappointment of M/s. P.D. Dani & Associates as Cost Auditors of the company for the financial year 2026-27, subject to a 1-year term.
08 · Previous-quarter changes
What changed since the previous quarter
Consolidated income from operations moved from INR 79.18 crore in Q4 FY26 to INR 80.03 crore in Q1 FY27, while total income shifted from INR 81.11 crore to INR 80.17 crore.
09 · Key Q&A
The quarter, answered directly
What does NELCO do?
NELCO Limited is a part of the Tata group and operates as a specialized provider of network systems and satellite communication services. The company delivers connectivity and network solutions primarily to enterprise customers across various industry verticals in India.
What is the clearest takeaway from Q1 FY27?
NELCO Limited reported consolidated income from operations of INR 80.03 crore for the quarter ended June 30, 2026, alongside total income of INR 80.17 crore after accounting for other income of INR 0.14 crore.
What drove revenue or demand?
Income from operations reached INR 80.03 crore for Q1 FY27, reflecting enterprise network service delivery across its consolidated customer base.
What mattered most for margins or profitability?
Operating expenses formed the largest cost component at INR 37.88 crore, followed by other expenses at INR 13.71 crore and employee benefits expenses at INR 13.24 crore.
What changed operationally beyond the headline numbers?
The Board of Directors approved the reappointment of M/s. P.D. Dani & Associates as Cost Auditors of the company for the financial year 2026-27, subject to a 1-year term.
What should the next disclosure help confirm?
Monitor ongoing execution and revenue growth within the single Network Systems reportable segment.
10 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
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11 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Network Systems Execution: Monitor ongoing execution and revenue growth within the single Network Systems reportable segment.
- 02
Cost Structure Realignment: Track future employee benefit expenses following the completion of payroll restructuring under the notified Labour Codes.
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