Recurring Service RevenueA service-led, recurring-fee business (VSAT and managed networks) generates predictable, sticky revenue from enterprise and institutional customers in remote locations. That stability supports medium-term cash flow visibility, contract renewal leverage and lower customer acquisition dependency.

Strong Gross MarginsConsistently strong gross margins indicate durable operational efficiency and pricing power in core services. High gross margin provides a buffer to absorb input cost pressures, funds reinvestment in networks, and underpins sustainable operating leverage over the next several quarters.

Healthy Equity RatioA healthy equity ratio signals a solid solvency buffer and disciplined capital structure, which supports access to funding and resilience through downturns. This structural balance sheet strength helps the firm pursue network investments without immediate solvency risk.

Bears Say

Rising LeverageAn increasing debt-to-equity trend reduces financial flexibility and raises interest obligations, constraining capacity to fund growth or absorb shocks. Over a multi-quarter horizon higher leverage elevates refinancing and covenant risk if operating cash generation weakens.

Declining Operating Cash FlowFalling operating cash flow and uneven FCF growth indicate earnings are not reliably converting to cash, stressing working capital and limiting self-funded investments. Persisting this trend would force reliance on external financing and hinder deleveraging or capex plans.

Weaker Net Margins And Uneven RevenueA significant drop in net margins and irregular revenue growth point to margin pressure beyond direct costs, and to demand or competitive instability. These trends reduce retained earnings, drive down ROE over time, and complicate medium-term planning and investment prioritization.

Nelco Limited News

Nelco Limited Confirms Compliance with SEBI Regulations for Q3 2025

The latest update is out from Nelco Limited ( ($IN:NELCO) ). Nelco Limited has announced that it has...

5M ago

NELCO

Nelco Limited Confirms Securities Dematerialization Compliance

Nelco Limited ( ($IN:NELCO) ) has provided an update. Nelco Limited has submitted a certificate under Regulation 74(5)...

8M ago

NELCO

NELCO FAQ

What was Nelco Limited’s price range in the past 12 months?

Nelco Limited lowest stock price was ₹579.85 and its highest was ₹1161.50 in the past 12 months.

What is Nelco Limited’s market cap?

Nelco Limited’s market cap is ₹14.22B.

When is Nelco Limited’s upcoming earnings report date?

Nelco Limited’s upcoming earnings report date is Apr 28, 2026 which is in 60 days.

How were Nelco Limited’s earnings last quarter?

Nelco Limited released its earnings results on Jan 15, 2026. The company reported -₹0.522 earnings per share for the quarter, missing the consensus estimate of N/A by -₹0.522.

Is Nelco Limited overvalued?

According to Wall Street analysts Nelco Limited’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nelco Limited pay dividends?

Nelco Limited pays a Annually dividend of ₹1 which represents an annual dividend yield of 0.13%. See more information on Nelco Limited dividends here

What is Nelco Limited’s EPS estimate?

Nelco Limited’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nelco Limited have?

Nelco Limited has 22,818,400 shares outstanding.

What happened to Nelco Limited’s price movement after its last earnings report?

Nelco Limited reported an EPS of -₹0.522 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went same 0%.

Which hedge fund is a major shareholder of Nelco Limited?

Currently, no hedge funds are holding shares in IN:NELCO

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Nelco Limited

Nelco Limited provides systems and solutions in the areas of very small aperture terminals (VSAT) connectivity, and integrated security and surveillance in India. It offers VSAT satellite communication services for renewable energy, enterprise, maritime, oil, energy, and gas sectors, as well as to bank ATM and branches. The company is also involved in the design, supply, installation, and maintenance of integrated security and surveillance solutions for application in industrial plants, power stations, broadcasting stations, telecommunications stations, airports, railways, seaports, and borders. In addition, it offers end to end networking solutions; and engages in the sale/rental of VSATs and maintenance of private hubs and hybrid networks. The company serves businesses and government institutions. The company was incorporated in 1940 and is based in Navi Mumbai, India. Nelco Limited operates as a subsidiary of The Tata Power Company Limited.