Nelco Limited announced its consolidated financial results for Q3FY26 ended December 31, 2025, showing a challenging quarter with the company reporting a net loss against the previous year's profit. The results were approved by the Board of Directors at their meeting held on January 15, 2026.

Financial Performance Overview

The company's consolidated financial performance showed mixed results across different time periods:

Revenue and Operational Metrics

The company's revenue from operations declined to ₹7,830 lakhs in Q3FY26 from ₹8,072 lakhs in Q3FY25, representing a decrease of 3.00%. For the nine-month period, revenue stood at ₹22,742 lakhs compared to ₹23,735 lakhs in the corresponding previous period, showing a decline of 4.18%.

Total expenses for Q3FY26 increased to ₹7,048 lakhs from ₹6,854 lakhs in Q3FY25. The company's EBITDA (profit before finance cost, depreciation, amortisation, share of profit from associate, exceptional items and tax) decreased to ₹840 lakhs from ₹1,370 lakhs year-on-year.

Impact of Exceptional Items

A significant factor affecting the quarterly results was the recognition of exceptional items worth ₹381 lakhs. These exceptional items relate to the implementation of four Labour Codes notified by the Government of India on November 21, 2025. The codes consolidate 29 existing labour laws and include:

• The Code on Wages, 2019
• The Industrial Relations Code, 2020
• The Code on Social Security, 2020
• The Occupational Safety, Health and Working Conditions Code, 2020

The company assessed and recognised the incremental impact based on available information and guidance from the Institute of Chartered Accountants of India.

Standalone Performance

On a standalone basis, Nelco Limited reported a net loss of ₹57 lakhs in Q3FY26 against a net profit of ₹439 lakhs in Q3FY25. Standalone revenue from operations declined to ₹4,966 lakhs from ₹5,120 lakhs year-on-year. The standalone results were impacted by exceptional items of ₹238 lakhs related to the same Labour Code regulations.

Nine-Month Performance

Despite the challenging quarterly performance, the company maintained profitability for the nine-month period with consolidated net profit of ₹223 lakhs, though significantly lower than ₹1,361 lakhs in 9M FY25. The nine-month results were also impacted by the same exceptional items of ₹381 lakhs on a consolidated basis.

Corporate Structure and Operations

The consolidated results include Nelco Limited as the holding company, its subsidiary Nelco Network Products Limited, and associate company Piscis Networks Private Limited. The company operates primarily in the Network Systems segment and reports its financial results as a single reportable segment based on evaluation of key financial parameters.

Nelco has announced that it will review its third quarter financial results on January 15, 2025. This scheduled review represents an important milestone for stakeholders seeking insights into the company's recent financial performance.

Scheduled Financial Review

The company has set January 15, 2025, as the date for reviewing its Q3 financial results. This review will provide investors and market participants with detailed information about the company's performance during the third quarter.

Stakeholder Communication

The announcement demonstrates Nelco's commitment to maintaining regular communication with its stakeholders through scheduled financial disclosures. Such reviews are essential for keeping investors informed about the company's operational and financial progress.

Market Significance

The scheduled results review will offer valuable insights into Nelco's quarterly performance, enabling stakeholders to assess the company's financial health and operational efficiency. This transparency in financial reporting helps maintain investor confidence and supports informed decision-making in the market.