Highlights

• Nelco Limited reported stable revenue but lower net profit for FY26.
• Board recommended a final dividend of ₹ 1 per share.
• Auditors issued an unmodified opinion on financial results for FY26.

Nelco Limited (NSE:NELCO) announced its audited financial results for the year ended March 31, 2026. The company is listed on Bombay Stock Exchange and National Stock Exchange of India.

For FY26, total consolidated income was ₹ 31,096 lakh, compared to ₹ 31,005 lakh in FY25. This shows that revenue remained almost unchanged. However, net profit fell to ₹ 332 lakh from ₹ 953 lakh in the previous year, showing pressure on earnings.

In the March 2026 quarter, the company reported a net profit of ₹ 109 lakh, compared to a loss in the previous quarter.

Dividend Announcement

The Board of Directors recommended a final dividend of ₹ 1 per share, which is 10% of the face value of ₹ 10. The dividend will be paid only after approval by shareholders at the Annual General Meeting.

Audit Update

The financial results were audited by S.R. Batliboi & Associates LLP. The auditors gave an unmodified opinion, which means the financial statements follow proper accounting rules and show a true and fair view.

Expense and Exceptional Impact

Total expenses increased to ₹ 27,804 lakh in FY26 from ₹ 26,290 lakh in FY25. This increase in costs affected the company’s profit.

The company also recorded an exceptional item related to new labour laws introduced by the Government of India. This one-time impact also reduced earnings during the year.

Balance Sheet Position

As of March 31, 2026, total assets stood at ₹ 34,737 lakh, compared to ₹ 28,745 lakh in the previous year. Equity increased slightly to ₹ 12,883 lakh.

Liabilities also increased, mainly due to higher borrowings and other financial obligations. This shows that the company is using more funds for its operations and investments.

Cash Flow Movement

The company generated ₹ 1,526 lakh from operating activities. However, investing activities showed cash outflow due to spending on assets.

Financing activities included borrowings, repayments, and dividend payments, which also affected cash levels.

Technical Summary

Nelco Limited (NSE:NELCO) is trading near ₹760.00, up around 12.83% as on 21 April 2026, and continues to remain above the 51-day SMA near ₹619.15, while the 14-day RSI near 73.97 points. Immediate support is placed in the ₹650.00–620.00 zone, while resistance is seen near the ₹800.00–850.00 range.

Source: TradingView

Key Risks

• Profit decline due to rising operating and employee costs.
• Impact of labour law changes may continue in future periods.
• Higher liabilities may increase financial pressure.
• Business depends on a single operating segment.

Summary

Nelco Limited (NSE:NELCO) reported stable revenue for FY26, but profit declined due to higher expenses and one-time impacts. The company maintained a clean audit report and announced a lower dividend compared to last year. The increase in assets and liabilities shows ongoing investment activity along with higher financial commitments.

FAQs

1. What dividend did Nelco Limited announce for FY26?
   Nelco Limited announced a final dividend of ₹ 1 per share, subject to approval by shareholders at the AGM.
2. Why did Nelco Limited’s profit fall in FY26?
   Profit fell due to higher expenses and a one-time impact from changes in labour laws during the financial year.
3. What does unmodified audit opinion mean for Nelco Limited?
   It means auditors found the financial statements correct and in line with accounting rules, with no major issues reported.