What was the exceptional gain of ₹1.06 crore?

It was a reversal of a labour-code provision, meaning a previous liability was no longer required. This one-time item boosted net profit.

What would core profit be without the exceptional gain?

Core net profit would be around ₹1.28 crore (₹2.34 cr minus ₹1.06 cr), which is lower than last year's ₹1.80 crore.

How did revenue perform in Q1?

Revenue from operations grew 7% year-on-year to ₹80.03 crore.

What else did the board approve?

The board re-appointed P.D. Dani & Associates as cost auditors for FY 2026-27. This is a routine governance item.

Earnings · IT - Hardware · Small cap

Nelco Q1 profit up 30% to ₹2.34 cr, but exceptional gain aids

Revenue rose 7% to ₹80 cr, but excluding a ₹1.06 cr provision reversal, core profit slipped. Routine filing, no surprises.

— 2 earlier stories on Nelco Ltd. →

NELCO By Tipsheet Editorial 16 Jul 2026 · 6:07 PM IST Verify on BSE · NSE

Mkt cap₹1,969 cr

ROE2.58%

Debt / eq.0.46

Div yld0.12%

₹2.34 crore Q1 FY27 net profit (including ₹1.06 cr exceptional gain)

What's new

Consolidated net profit rose to ₹2.34 cr from ₹1.80 cr a year ago.
Revenue grew 7% to ₹80.03 crore.
Exceptional gain of ₹1.06 cr from labour-code provision reversal.

Why this matters

The profit jump is flattered by a one-time gain. Strip it out, and core profit fell. No guidance, no strategic shift. For a stock with a P/E of 593, this won't move prices.

What we're watching

Whether cost control can lift core profit without exceptional items.
Any management commentary on demand trends in the hardware segment.

The full read

Nelco's Q1 profit of ₹2.34 crore looks decent. But the 30% year-on-year jump is all exceptional gain — strip out the ₹1.06 crore labour-code provision reversal and core profit actually fell. Revenue grew 7% to ₹80.03 crore, in line with recent trends. Not a catalyst. The board reappointed P.D. Dani & Associates as cost auditors, a routine governance item. The analyst rationale confirms the results contain no surprising strategic shifts or material surprises that would drive analyst model revisions, so the filing carries standard market relevance. For a stock trading at a P/E of 593, this won't move the needle.

Questions answered

What was the exceptional gain of ₹1.06 crore?: It was a reversal of a labour-code provision, meaning a previous liability was no longer required. This one-time item boosted net profit.
What would core profit be without the exceptional gain?: Core net profit would be around ₹1.28 crore (₹2.34 cr minus ₹1.06 cr), which is lower than last year's ₹1.80 crore.
How did revenue perform in Q1?: Revenue from operations grew 7% year-on-year to ₹80.03 crore.
What else did the board approve?: The board re-appointed P.D. Dani & Associates as cost auditors for FY 2026-27. This is a routine governance item.

Mentioned: P.D. Dani & Associates · ₹1.06 cr exceptional gain

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Nelco Ltd.

Software Services

₹1,975 cr

P/E 511.76×

Latest quarter · Jun 2026

Sales₹80 cr

Net profit₹2 cr

Op. margin+10.4%

EPS₹1.03

Strength & growth

Debt / equity0.46×

Current ratio0.91×

Sales CAGR+8.5%

EPS CAGR−7.7%

Story so far

All notes on NELCO →

16 Jul 2026 · 6:07 PM IST Nelco Q1 profit up 30% to ₹2.34 cr, but exceptional gain aids
12d ago Nelco Q1 profit rises 30% on exceptional gain
12d ago Nelco Q1 profit up 30% to ₹2.34 cr, exceptional gain lifts bottom line