NELCO Ltd's Q1FY26 Quarter Results
- 1d ago
Result Summary
- NELCO Ltd reported a 8.5% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1FY26). On a year-on-year (YoY) basis, it witnessed a growth of 1.6%.
- Its expenses for the quarter were down by 1.5% QoQ and up 7.4% YoY.
- The net profit decreased 70.5% QoQ and decreased 60.5% YoY.
- The earnings per share (EPS) of NELCO Ltd stood at 0.8 during Q1FY26.
Financial Statments for Q1FY26
| (₹ crores) | Q1FY26 | Q4FY25 | Q1FY25 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 75.36 | 82.34 | 74.19 | -8.5% | 1.6% |
Total Expenses | 73.15 | 74.28 | 68.13 | -1.5% | 7.4% |
Profit Before Tax | 2.21 | 8.06 | 6.06 | -72.6% | -63.5% |
Tax | 0.60 | 2.11 | 1.55 | -71.6% | -61.3% |
Profit After Tax | 1.80 | 6.10 | 4.56 | -70.5% | -60.5% |
Earnings Per Share | 0.80 | 2.70 | 2.00 | -70.4% | -60.0% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
NELCO Ltd is a well-established company operating primarily in the telecommunications sector. It provides a range of services including satellite communication solutions, managed network services, and system integration. NELCO Ltd is part of the Tata Group, one of India's largest conglomerates, which positions it advantageously within the industry. The company is focused on delivering high-quality communication services to both corporate and individual clients. As of the most recent quarter, there have been no major developments publicly announced that could significantly alter the company's operational trajectory or market position. However, it is important to monitor the industry closely for any emerging trends or regulatory changes that might impact NELCO's operations.
Revenue
In the first quarter of fiscal year 2026, NELCO Ltd reported a total income of ₹75.36 crores. This represents a slight year-over-year increase of 1.6% compared to the same quarter in the previous fiscal year, where total income was ₹74.19 crores. However, there was a quarter-over-quarter decline of 8.5% from the fourth quarter of fiscal year 2025, where the company recorded a total income of ₹82.34 crores. This fluctuation in revenue could be indicative of seasonal variations or other operational factors affecting the company's income streams. It is crucial for the company to address such variations to maintain a steady growth pattern in its revenue generation.
Profitability
NELCO Ltd's profitability in Q1FY26 experienced a significant decline compared to both the previous quarter and the same quarter last year. The profit before tax (PBT) for Q1FY26 was ₹2.21 crores, showing a substantial decrease of 72.6% from Q4FY25, where PBT was ₹8.06 crores. Similarly, compared to Q1FY25, where the PBT was ₹6.06 crores, there was a 63.5% decrease. The profit after tax (PAT) also mirrored this trend, falling to ₹1.80 crores in Q1FY26 from ₹6.10 crores in Q4FY25, and from ₹4.56 crores in Q1FY25, marking declines of 70.5% and 60.5% respectively. These reductions in profitability reflect increased challenges in maintaining cost efficiencies or revenue margins, which have impacted the earnings per share, dropping from ₹2.70 in Q4FY25 to ₹0.80 in Q1FY26.
Operating Metrics
The total expenses for NELCO Ltd in Q1FY26 were ₹73.15 crores, showing a slight decrease of 1.5% from Q4FY25's ₹74.28 crores but a 7.4% increase from Q1FY25's ₹68.13 crores. This indicates a rise in operational costs year-over-year, which could be attributed to various factors such as inflationary pressures, increased cost of goods sold, or expanded operational activities. Notably, the tax expense for Q1FY26 was ₹0.60 crores, down from ₹2.11 crores in Q4FY25 and ₹1.55 crores in Q1FY25, reflecting reductions of 71.6% and 61.3% respectively. These operating metrics suggest a need for NELCO Ltd to closely monitor and manage its operational expenditures to optimize profitability in upcoming quarters.