Prime Highlights

• NELCO swung from a net loss of ₹4.1 crore to a net profit of ₹1.1 crore in the March quarter, marking a full return to profitability.
• The board declared a final dividend of ₹1 per share, pending shareholder approval at the AGM.

Key Facts

• NELCO Ltd. is a Tata Group company with Tata Power as its promoter, holding a 50% stake. The company operates in satellite communication and network services.
• Despite Tuesday’s 13% surge and a 41% rally over the past month, NELCO shares remain 34% below their 52-week high of ₹1,161.

Background

Shares of NELCO Ltd., a Tata Group company, jumped as much as 13% on Tuesday after the firm posted better-than-expected results for the March quarter.

The stock gained 13.3% to close at ₹763.7, recording its best-ever performance in one day since late December 2024. This surge not only erased all of NELCO’s losses for the year but made the stock positive for the year. Yet, the stock is trading 34% lower than its peak of ₹1,161 recorded in the previous 52 weeks despite rallying 41% in the last one month.

The March quarter saw NELCO turning profitable, with a net profit of ₹1.1 crore compared with a net loss of ₹4.1 crore in the corresponding quarter last year. Its revenue increased by 17.3% year-over-year to ₹79.2 crore from ₹67.5 crore.

The board also approved a final dividend of ₹1 per share, subject to shareholder approval at the upcoming Annual General Meeting.

Tata Power holds a 50% promoter stake in NELCO. Schlumberger Ltd. owns a 3.8% stake, while approximately 6.9 lakh small retail investors — those with shareholdings up to ₹2 lakh — collectively hold a 33.1% stake. India’s mutual funds currently hold no stake in the company.

The stock had ended lower on Monday ahead of the results, snapping a five-day winning streak, before bouncing back sharply once the numbers were out.