NELCO's 11.67% margin trails IT peer median by 6.86 points
Interest and depreciation weighed on pre-tax profit, while other income of Rs 2.45 cr exceeded PBT of Rs 2.33 cr.
Filed 19 Oct 2026, 17:35 IST · after market close · NELCO Ltd (NELCO)
Key takeaways
- NELCO's consolidated operating profit of Rs 9.12 cr translated into an 11.67% operating margin, but profit before tax was only Rs 2.33 cr.
- Interest of Rs 3.44 cr and depreciation of Rs 5.8 cr weighed on the conversion of operating profit into pre-tax profit, while other income of Rs 2.45 cr exceeded PBT.
- NELCO's 11.67% operating margin was 6.86 percentage points below the 18.53% median for 12 reported Information Technology peers.
Price around the results
Operating profit did not carry through to PBT
Consolidated revenue was Rs 78.14 cr against expenses of Rs 69.02 cr, producing operating profit of Rs 9.12 cr and an 11.67% operating margin. Interest of Rs 3.44 cr and depreciation of Rs 5.8 cr reduced the amount reaching pre-tax profit, which stood at Rs 2.33 cr. Other income of Rs 2.45 cr exceeded PBT, making the reported profit quality less dependent on operating earnings than the operating-profit figure suggests.
Margin sits at the bottom of the reported peer set
NELCO's operating margin was 6.86 percentage points below the 18.53% median for 12 Information Technology peers that have reported the quarter. The company ranked first from the bottom on this measure, making the margin gap a more important feature of the quarter than the absolute operating profit.
Net profit was Rs 1.73 cr after a 25.75% tax rate
After interest, depreciation and tax of Rs 0.6 cr, consolidated net profit was Rs 1.73 cr and basic EPS was Rs 0.76. The 25.75% tax rate did not provide a visible tax-rate lift to the result because no comparative tax-rate movement is available for this quarter.
Results were filed after market close
NELCO filed its consolidated Q2FY27 results after market close on 19 October 2026. The stock's post-results move is therefore to be assessed in the next trading session rather than from the filing itself.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹78 cr |
| Other income | ₹2 cr |
| Expenses | ₹69 cr |
| Operating profit | ₹9 cr |
| Operating margin (%) | 11.67% |
| Interest | ₹3 cr |
| Depreciation | ₹6 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹1 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.76 |
Operating margin of 11.67% compares with a Information Technology sector median of 18.53% across 12 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from 11.67% and narrows the 6.86-percentage-point gap with the peer median.
- Whether pre-tax profit rises above Rs 2.33 cr without other income exceeding Rs 2.45 cr.
- Whether the 25.75% tax rate changes materially in the next reported quarter.