Nesco Limited has announced a significant revision to its Wayside Amenities Project in collaboration with National Highways Logistics Management Limited (NHLML). The company has decided to abandon two of the three initially awarded locations in the South Zone due to feasibility and viability challenges.

Project Revision Details

NESCO has provided the following updated information about the project:

Background and Implications

The original letter of award from NHLML, communicated to the exchanges on January 6, granted NESCO the rights for developing, operating, and maintaining Wayside Amenities at three sites in the South Zone on the Bengaluru Chennai Expressway Corridor (Phase II) Section.

Following a joint inspection of the sites and discussions with vendors regarding the scope of work, NESCO identified significant challenges at two of the allotted locations. Consequently, the company decided to surrender these sites, a decision that NHLML has accepted.

Financial Impact

NESCO has clarified that there are no financial implications imposed by NHLML due to the surrender of the two sites. The company will proceed with the development of the single viable location, focusing its resources and efforts on maximizing the potential of this site.

Looking Ahead

While the project scope has been reduced, NESCO remains committed to the development of the Wayside Amenities. The expected annual revenue of ₹115.00 crore from the fourth year of operations suggests a potentially lucrative long-term opportunity for the company, despite the initial setback.

The revision of this project underscores the importance of thorough site assessments and flexibility in large-scale infrastructure developments. As NESCO moves forward with the single site, stakeholders will likely be watching closely to see how this focused approach impacts the project's overall success and the company's performance in this sector.

Nesco Limited , a diversified company with interests in IT parks, exhibitions, and events, has released an investor presentation ahead of its participation in the Equirus Annual India Conference 2025, scheduled for August 19, 2025, in Mumbai. The presentation highlights the company's robust financial performance and ambitious expansion plans across various business segments.

Financial Performance

Nesco reported impressive financial results for FY2025:

The company's strong financial position is further underscored by its cash generation from operations, which stood at ₹348 crores for FY2025.

IT Park Success

Nesco's IT park business has shown remarkable performance:

• Towers 3 and 4 have achieved 100% occupancy rates.
• The IT park houses over 25,000 employees from prestigious clients such as MSCI, HSBC, PwC, and BlackRock.
• Tower 3 offers 62,150 sq. meters of chargeable area with an average rental rate of ₹179 per sq. ft. per month.
• Tower 4 provides 103,380 sq. meters of chargeable area with an average rental rate of ₹173 per sq. ft. per month.

Exhibition and Events Business

The exhibition and events segment has also shown strong growth:

• Generated ₹174 crores in income for FY2024-25.
• Hosted over 100 exhibitions during the fiscal year.
• The segment saw a 72.2% year-over-year increase in Q1 FY2025-26, with income reaching ₹38 crores.

Expansion Plans

Nesco is actively pursuing growth opportunities:

IT Park Expansion

• Received Intimation of Disapproval from BMC for Tower 2 in its IT park.
• New development will span approximately 5.01 million sq. ft. of constructed area.
• Will offer 1.65 million sq. ft. of chargeable office space.

Wayside Amenities

• Entered the wayside amenities sector, securing 11 sites across express highways.
• Estimated capex for this new venture is approximately ₹400 crores.

Hospitality

• Plans to develop a hotel with 732 premium rooms and suites.
• Will include 172 service apartments as part of its IT park expansion.

Sustainability Initiatives

Nesco demonstrates a strong commitment to sustainability:

• 100% renewable energy usage across its IT park operations.
• LEED IGBC Platinum certification for Towers 3 and 4.
• Implementation of water and waste efficiency practices, including sewage treatment plants and waste composting.

Corporate Recognition

The company's efforts have been recognized with several certifications:

• Great Place to Work certification (December 2024 - December 2025)
• ISO 45001:2018 certification for Total Facilities Management
• FSSAI certification for the Nesco Complex Food Court

Nesco Limited's strong financial performance, successful business segments, and ambitious expansion plans position it well for continued growth. The company's focus on sustainability and commitment to quality further enhance its appeal to investors and clients alike.