Nelco's Q1 Profit More Than Doubles, Signaling Strong Recovery
The Tata Group satellite communications firm reported a 30% YoY jump in profit, with margins improving significantly from the previous quarter.
Nelco's first-quarter profit soared 115% sequentially to ₹2.34 crore, while revenue grew 7% year-on-year. The company's net profit margin expanded to 2.9%, showing improved operational efficiency.
Nelco has kicked off FY27 with a powerful earnings rebound, as its first-quarter profit more than doubled from the previous three months. This sharp sequential improvement points to a significant recovery in operational performance for the Tata Group's satellite communications arm.
The company's revenue for the quarter ended June 2026 came in at ₹80.03 crore, a steady 7% increase from the same period last year. However, the real story is in profitability. Net profit surged 30% year-on-year and a remarkable 115% quarter-on-quarter to ₹2.34 crore. This translated into a net profit margin of 2.9%, a notable expansion from 1.4% in Q4 FY26 and 2.4% in Q1 FY26.
A look at the recent quarterly trajectory shows a clear turnaround from a loss-making position in Q3 FY26.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 80.03YoY +7% | 79.18 | 74.79 |
| Profit (₹ Cr) | 2.34YoY +30% | 1.09 | 1.80 |
| Net Profit Margin (%) | 2.9YoY +21% | 1.4 | 2.4 |
Key Points
- The trailing-twelve-month (TTM) net profit margin stands at 1.2%, indicating the latest quarter's performance is a positive step above the recent average.
- The stock has delivered a 13.1% return over the past year, closing at ₹995.1 on the results date.
- On valuation, the stock trades at a significant premium to its industry, with a P/E of 347.6 compared to the sector average of 17.4.
While revenue growth remains measured, the dramatic profit recovery and margin expansion in Q1 suggest Nelco is successfully navigating its path back to consistent profitability.
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· NELCO
(BSE)
ISIN: INE045B01015
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