Nesco Ltd. has kicked off FY26 with a robust financial performance, reporting consolidated revenue from operations of 1.93 billion rupees and a net profit of 961.4 million rupees for the quarter ended June 2025. The results reflect a strong operational grip and efficient cost management, positioning the company as a resilient mid-cap player in the capital goods and realty segments.
Key Financial Highlights
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Revenue from operations stood at 1.93 billion rupees, up 36.5% year-on-year from 1.41 billion rupees in Q1 FY25
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Net profit surged to 961.4 million rupees, marking a 37.8% increase from 697.9 million rupees in the same quarter last year
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Net profit margin reached an impressive 49.8%, indicating strong bottom-line efficiency
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Earnings per share (EPS) rose to 13.6 rupees, compared to 9.9 rupees in Q1 FY25
Segment-Wise Performance
Nesco Realty – IT Park
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Continued to be the largest revenue contributor, driven by stable leasing and occupancy
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Revenue grew 28% year-on-year, supported by new tenant additions and rental escalations
Bombay Exhibition Centre
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Rebounded strongly post-election-related disruptions in Q4 FY25
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Revenue jumped 42%, aided by a packed event calendar and higher footfall
Indabrator (Engineering Division)
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Delivered steady growth with a 19% rise in revenue
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Order book remains healthy, with demand from railways and infrastructure sectors
Nesco Foods
Recorded a 33% increase in revenue, driven by higher catering volumes and new institutional clients
Operational Efficiency and Cost Control
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Total expenses rose moderately to 1.01 billion rupees, maintaining a lean cost structure
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Employee benefit expenses and depreciation remained stable as a percentage of revenue
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Finance costs were negligible, reflecting Nesco’s debt-free status
Strategic Developments
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Nesco received operational clearance for IT Park Buildings 3 and 4, expected to boost leasing revenue in H2 FY2
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The company continues to explore expansion opportunities in highway infrastructure, with potential long-term revenue streams from wayside amenities
Investor Takeaways
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Nesco’s PE ratio stands at 17.9, below the sector average of 28.9, suggesting reasonable valuation
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ROE remains healthy at 15.8%, supported by strong asset utilization and capital efficiency
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Promoter holding is stable at 68.54%, indicating long-term confidence
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Dividend yield of 1.31% adds to shareholder value, with consistent payouts over the past three years
Market Reaction
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Nesco shares rose 7.8% on the BSE post-results, closing at 1,293.45 rupees
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Trading volumes spiked, reflecting renewed investor interest in the stock
Outlook
With a strong start to FY26, Nesco is well-positioned to capitalize on its diversified business model. The company’s focus on realty, engineering, and hospitality continues to deliver consistent returns, while its infrastructure bids could unlock new growth avenues. Investors seeking a stable mid-cap with high margins and low debt may find Nesco an attractive long-term bet.
Source: Moneycontrol
