Nelco Q1 profit rises 30% on exceptional gain
Consolidated net profit of ₹2.34 crore includes ₹1.06 crore one-off reversal; revenue up 7% to ₹80.03 crore.
— 2 earlier stories on Nelco Ltd. →What's new
- Net profit ₹2.34 crore versus ₹1.80 crore YoY.
- Revenue ₹80.03 crore, up 7% from year ago.
- Exceptional gain of ₹1.06 crore from reversal of provision for retirement benefits.
Why this matters
The one-off reversal accounts for a large share of reported profit; without it, earnings would be far lower. With a trailing P/E of 593x, the stock prices in a growth trajectory that this quarter's core business does not support.
What we're watching
- Whether organic earnings can improve without one-time boosts.
- If revenue growth can accelerate from the current 7% pace.
- How the valuation adjusts if profitability fails to catch up.
The full read
Nelco reported a consolidated net profit of ₹2.34 crore for Q1 FY27, up from ₹1.80 crore a year ago. Revenue rose 7% to ₹80.03 crore. The profit figure includes an exceptional gain of ₹1.06 crore from the reversal of a retirement-benefit provision tied to new labour codes. Excluding that, underlying profit was lower. The result is broadly in line with prior trends and carries no new guidance or strategic shifts. The re-appointment of cost auditor P.D. Dani & Associates is procedural. For a company valued at ₹1,969 crore with a trailing P/E of 593x, the stock already prices in far faster growth than mid-single-digit revenue and one-off earnings.
Questions answered
- What was the exceptional gain?
- A ₹1.06 crore reversal of a provision for retirement benefits originally booked in anticipation of new labour codes, now reversed.
- What was the revenue figure?
- Revenue from operations grew 7% year-on-year to ₹80.03 crore.
- Was there any material non-financial news?
- Nelco re-appointed P.D. Dani & Associates as cost auditors for FY27, a routine governance item.
- How does this quarter compare to the prior year?
- Net profit rose from ₹1.80 crore to ₹2.34 crore, but the increase is largely due to the exceptional gain.
- Why is the P/E so high?
- At 593x trailing earnings, the stock price implies expectations of aggressive future growth that the current core results do not yet reflect.
Nelco Ltd.
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All notes on NELCO →- 16 Jul 2026 · 6:03 PM IST Nelco Q1 profit rises 30% on exceptional gain
- 12d ago Nelco Q1 profit up 30% to ₹2.34 cr, but exceptional gain aids
- 12d ago Nelco Q1 profit up 30% to ₹2.34 cr, exceptional gain lifts bottom line