Tata Group company Nelco Ltd achieved a significant financial turnaround in Q4 FY26, reporting a net profit of ₹1.09 crore compared to a net loss of ₹4.1 crore in the same quarter of the previous year. According to the latest financial results, this marks a complete reversal of the company's financial performance during the quarter ended March 31, 2026. The company's earnings per share improved to ₹0.48 compared to negative ₹0.52 in Q2 and negative ₹1.79 in Q3 FY25, reflecting substantial improvement in bottom-line performance.
The company demonstrated strong revenue growth with revenue increasing 17% year-on-year to ₹79.2 crore, up from ₹67.5 crore in the corresponding quarter of the previous year. As reported in the latest financial results, total income increased to ₹81.1 crore in Q4 FY26 from ₹78.9 crore in the preceding quarter and ₹70.2 crore a year ago. The sequential improvement was particularly notable, with profit before tax standing at ₹1.75 crore versus a loss of ₹1.73 crore in Q2, reflecting a significant turnaround in operational performance.
Despite cost pressures, improved revenue led to margin recovery during the quarter. Total expenses rose to ₹73.7 crore from ₹70.5 crore in Q2 and ₹60.9 crore in Q3 FY25, driven by higher operating and employee costs. On a quarter-on-quarter basis, operating expenses increased to ₹39.2 crore from ₹35.0 crore, while employee benefit expenses rose to ₹13.8 crore from ₹12.9 crore. However, depreciation and finance costs declined sequentially, aiding overall profitability. The company reported tax expense of ₹0.66 crore compared to a tax credit in Q2, impacting net earnings movement.
The board of directors recommended a final dividend of ₹1 per share (10%) on equity shares with a face value of ₹10 each for the financial year ended March 31, 2026. According to the stock exchange filing, the dividend is subject to shareholder approval at the ensuing annual general meeting. The company holds VSAT License, Internet Service Provider (ISP) License, and Inflight & Maritime Communication (IFMC) license issued by the Department of Telecommunication, Government of India.
For the full year FY26, revenue from operations stood at ₹306.6 crore compared to ₹304.9 crore in FY25, showing marginal growth. However, net profit declined to ₹3.32 crore from ₹9.53 crore in the previous year, with profitability impacted by higher expenses and lower operating leverage during the year. Despite the annual decline, the Q4 turnaround demonstrates the company's operational recovery and improved financial management capabilities.
