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Nelco Recommends Rs. 1 Dividend per Share; Reports FY26 Audited Results
Nelco Limited has recommended a final dividend of Rs. 1 per equity share (10% of face value) for the financial year ended March 31, 2026. The company's consolidated total assets grew to Rs. 34,737 lakhs from Rs. 28,745 lakhs in the previous year. While total equity saw a marginal increase to Rs. 12,883 lakhs, current liabilities increased significantly to Rs. 20,746 lakhs. The dividend recommendation is subject to shareholder approval at the upcoming Annual General Meeting.
Key Highlights
Recommended a final dividend of Rs. 1 per share (10% of face value of Rs. 10) for FY 2025-26.
Consolidated total assets increased by 20.8% to Rs. 34,737 lakhs from Rs. 28,745 lakhs YoY.
Total equity stood at Rs. 12,883 lakhs as of March 31, 2026, compared to Rs. 12,790 lakhs in FY25.
Current liabilities rose to Rs. 20,746 lakhs compared to Rs. 15,250 lakhs in the previous year.
💼 Action for Investors
Investors should maintain their positions as the dividend provides a stable return, though they should monitor the rising current liabilities in the balance sheet.
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Nelco Receives GST Demand Order of Rs 14.14 Crore Including Penalty
Nelco Limited has received a formal order from the CGST & C.Ex authorities confirming a tax demand of Rs 1,414 Lakhs. The dispute relates to GST liability under the reverse charge mechanism for the period from April 1, 2019, to March 31, 2022. The total demand includes a penalty of Rs 707 Lakhs. While the company intends to appeal the order and claims no immediate financial impact, this represents a significant legal dispute.
Key Highlights
Total GST demand confirmed at Rs 1,414 Lakhs (approximately Rs 14.14 Crore)
Includes a penalty of Rs 707 Lakhs imposed under Section 74 of the CGST Act
Tax period covered is from April 2019 to March 2022 regarding Reverse Charge Mechanism (RCM)
Company plans to pursue an appeal or evaluate other legal options against the order
💼 Action for Investors
Investors should track the progress of the legal appeal as an unfavorable final outcome would impact the company's cash reserves. The demand is currently a contingent liability and does not affect immediate operations.
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Nelco Q3 FY26 Results: Revenue at ₹78.3 Cr, Reports Net Loss of ₹1.19 Cr on Exceptional Items
Nelco Limited reported a consolidated revenue of ₹78.3 crore for Q3 FY26, showing a 5.3% sequential growth but a 3% decline compared to the same quarter last year. The company swung to a net loss of ₹1.19 crore for the quarter, primarily due to a one-time exceptional charge of ₹3.81 crore related to the implementation of new Labour Codes. Profitability has seen a sharp decline over the nine-month period, with net profit falling to ₹2.23 crore from ₹13.61 crore in the previous year. Operating expenses remained high at ₹70.48 crore, further impacting margins.
Key Highlights
Consolidated Revenue from operations stood at ₹78.30 crore, a 3% decline from ₹80.72 crore in Q3 FY25.
Reported a Net Loss of ₹1.19 crore for the quarter compared to a Net Profit of ₹4.95 crore in the previous year's corresponding quarter.
Recognized a one-time exceptional expense of ₹3.81 crore following the notification of new Government Labour Codes.
9-month Net Profit plummeted by 83.6% year-on-year to ₹2.23 crore.
Earnings Per Share (EPS) for the quarter turned negative at -₹0.52 from ₹2.17 in Q3 FY25.
💼 Action for Investors
Investors should exercise caution as the company is experiencing significant margin pressure and stagnant year-on-year revenue growth. While the current loss is exacerbated by a one-time regulatory cost, the overall downward trend in 9-month profitability suggests waiting for a recovery in operational performance before making new entries.