NELCO Limited Announces Q1 FY2027 Results and Re-appointment of Cost Auditors
NELCO Limited has announced its unaudited financial results for the quarter ended June 30, 2026, alongside a significant corporate update regarding the reappointment of its Cost Auditors. The company reported steady performance across both consolidated and standalone segments during the period.Financial Performance Overview
For the quarter ended June 30, 2026, NELCO Limited reported a net profit of Rs. 234 Lakhs on a consolidated basis. This represents an increase compared to the Rs. 109 Lakhs reported in the preceding quarter ended March 31, 2026. The company also recorded a total comprehensive income of Rs. 269 Lakhs for the period.On a standalone basis, the company reported a net profit of Rs. 380 Lakhs for the same quarter, compared to Rs. 279 Lakhs in the preceding three months. The standalone results show a significant rise in total comprehensive income to Rs. 401 Lakhs.
The consolidated financial highlights for the quarter ended June 30, 2026, are detailed below:
| Particulars | 3 Months ended 30-June-2026 (Unaudited) | Preceding 3 Months ended 31-Mar-2026 (Audited) | Corresponding 3 Months ended 30-Jun-2025 (Unaudited) | Previous Year ended March 31, 2026 (Audited) |
|---|---|---|---|---|
| Total Income | Rs. 8,017 Lakhs | Rs. 8,111 Lakhs | Rs. 7,536 Lakhs | Rs. 31,096 Lakhs |
| Total Expenses | Rs. 7,171 Lakhs | Rs. 7,365 Lakhs | Rs. 6,705 Lakhs | Rs. 27,804 Lakhs |
| Profit before Share of profit from associate | Rs. 207 Lakhs | Rs. 181 Lakhs | Rs. 221 Lakhs | Rs. 810 Lakhs |
| Net Profit for the period | Rs. 234 Lakhs | Rs. 109 Lakhs | Rs. 180 Lakhs | Rs. 332 Lakhs |
| Total Comprehensive Income | Rs. 269 Lakhs | Rs. 147 Lakhs | Rs. 138 Lakhs | Rs. 321 Lakhs |
Impact of Labour Codes and Exceptional Items
The company highlighted the impact of the Government of India's notification regarding four Labour Codes, including the Code on Wages, 2019, and the Industrial Relations Code, 2020. Management identified an incremental impact of Rs. 381 Lakhs due to these changes, which was initially disclosed as an exceptional item for the year ended March 31, 2026.During the quarter ended June 30, 2026, the company completed a payroll restructuring process to align with the new requirements. Consequently, management reversed a provision for Retirement Benefits amounting to Rs. 106 Lakhs, which was recognized as an exceptional item for the current period.
Appointment of Cost Auditors
The Board of Directors has approved the reappointment of P.D. Dani & Associates as the Cost Auditors of the company. The firm will conduct the Cost Audit for the Financial Year 2026-27.P.D. Dani & Associates is a specialized cost accounting firm led by partners with extensive professional experience in Cost and Management Accounting. Their services include Statutory Cost Audits, certifications, and the development of costing-based turnaround strategies. The appointment is for a term of one year.
NELCO Stock Price Movement
NELCO Limited shares climbed 1.33% today to settle at ₹874.00 in post-market trading. The stock saw a turnover of 184,455 shares as it rebounded from earlier session lows.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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