Shares of Nelco Limited surged nearly 14% in early trade on April 21 after the company reported its Q4 FY26 results, marking a return to profitability on a year-on-year and sequential basis.
The company reported revenue of ₹79.18 crore for the quarter, registering a 17.27% growth compared to ₹67.52 crore in the same period last year, while also seeing a marginal 1.12% increase over the previous quarter.
However, operating performance remained under pressure, with EBITDA declining 16.59% year-on-year to ₹5.53 crore from ₹6.63 crore. On a sequential basis, EBITDA fell 29.28%. EBITDA margin also contracted to 6.98% from 9.82% in the year-ago quarter and 9.99% in Q3 FY26.
Despite the margin compression, profitability at the bottom line improved sharply. Profit before tax (excluding exceptional items) rose 54.87% year-on-year to ₹1.75 crore, though it declined 15.87% sequentially.
The company reported a net profit of ₹1.09 crore for the quarter, compared to a loss of ₹4.08 crore in the same period last year and a loss of ₹1.19 crore in the previous quarter, indicating a strong turnaround.
Other income stood at ₹1.93 crore, compared to ₹2.64 crore in the year-ago quarter and ₹0.58 crore in Q3 FY26.
The improvement in profitability was aided by the absence of exceptional losses in the current quarter. In Q3 FY26, the company had reported an exceptional loss of ₹3.81 crore, which had weighed on earnings, thereby supporting the sequential recovery in net profit.
Overall, while margins remained under pressure, the company’s return to profitability and stable revenue growth appear to have boosted investor sentiment, leading to a sharp uptick in the stock.