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    Nesco Q4 FY26 earnings call

    NESCO
    Services·27 Jul 2026
    Management Summary

    Nesco Limited reported a strong financial year ending March 2026, with total income exceeding ₹1,000 crores for the first time, driven by robust growth in its Realty, Exhibition & Events, and Foods divisions. The company maintained a debt-free status with significant liquidity. However, the Engineering division saw a revenue decline, and the Wayside Amenities project faced setbacks with site surrenders. Management provided updates on ongoing projects like Tower 2 and Hall 1, while addressing shareholder concerns regarding project timelines and operational aspects, and committed to continuing virtual AGMs.

    Highlights

    9
    • Total income of ₹1,031 crores, up 22% YoY, crossing ₹1,000 crores for the first time.

    • EBITDA of ₹590 crores.

    • Profit after tax of ₹412 crores, up 10% YoY.

    • Debt-free status with liquidity of ₹1,471 crores.

    • Realty division (Towers 3 & 4) maintained 100% occupancy and generated ₹398 crores revenue (8.6% growth).

    • Exhibition and Events revenue grew 30% to ₹260 crores, hosting over 135 events.

    • Foods division revenue grew 107% to ₹238 crores, evolving into a popular entertainment destination.

    • Transitioned to 100% renewable energy for Mumbai facility and holds Platinum-rated Green Building certifications for Towers 3 and 4.

    • Contributed ₹8.30 crores towards CSR initiatives.

    Concerns

    4
    • Engineering division reported lower revenue of ₹35 crores due to softer demand in certain capital goods sectors.

    • Delay in final clearances for Tower 2, pushing commencement of work, and an extended completion timeline of 60 months.

    • Wayside Amenities project faced surrender of some sites due to local villager unrest, infrastructure deficiencies, and regulatory issues.

    • The 9x9 music concert incident at the venue, though Nesco employees were not involved, is an unfortunate event.

    Key financials

    Single quarter

    06 metrics
    1. 01Total Income₹1,031 Cr+22%YoY
    2. 02EBITDA₹590 Cr
    3. 03Profit After Tax₹412 Cr+10%YoY
    4. 04Liquidity₹1,471 Cr
    5. 05Treasury Size (Jun 2026)₹1,650 Cr

    Segment breakdown

    • Realty₹398 Cr42.7%
    • Exhibition and Events₹260 Cr27.9%
    • Foods₹238 Cr25.6%
    • Engineering₹35 Cr3.8%
    Donut· Share of Revenue

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    mostly internal accruals

    Debt

    Debt disclosed

    Dividend

    ₹27/share (final)

    Liquidity

    Cash ₹1,471 crores

    Treasury size as of June 2026 was ₹1,650 crores, invested in debt funds, bonds, preference shares and CDs and mutual funds.

    Guidance & targets

    6
    CategoryTargetPriority
    Capital Projects
    Tower 2 Completion Timeline
    60 months
    High
    Capital Projects
    Wayside Amenities Operations Start
    end of this financial year
    High
    Capital Projects
    Hall 1 Operationalization
    within 12 months
    High
    ESG
    ESG Roadmap
    establish measurable goals
    High
    Shareholder Engagement
    AGM Mode
    continue virtual meetings
    High
    Shareholder Engagement
    Investor Con-calls
    arrange something more regular
    Medium

    What to watch in Q1 FY27

    5

    Tower 2 Construction Commencement & Progress

    Next quarter/H2 FY27
    CurrentSite at ground zero, works started 7-8 months ago, 360-degree barricading, demolition complete. Awaiting final clearances.
    TargetClearances received, significant construction progress visible.

    Why it matters

    Major capex project, crucial for future revenue growth and long-term valuation.

    The time of completion envisaged is about 60 months of getting commencement certificate.

    Risks & concerns

    4
    RiskSeverity

    Delay in Tower 2 clearances and extended project timeline

    Intimation of disapproval for Tower 2 received last year, still awaiting final clearances, delaying commencement of work and extending completion to 60 months.Analyst acknowledged

    medium

    Reputational impact from 9x9 music concert incident at venue

    Unfortunate incident at the venue on 11 April 2026, resulting in fatalities, though Nesco employees were not involved and company is cooperating with authorities.Management acknowledged

    medium

    Setbacks in Wayside Amenities project due to site surrenders

    Surrendered few sites due to local villager unrest, infrastructure deficiencies, regulatory and land-related issues, reducing commercial feasibility.Management acknowledged

    medium

    Softer demand in capital goods sectors impacting Engineering division revenue

    Engineering arm reported lower revenue of ₹35 crores due to softer demand across certain capital goods sectors.Management acknowledged

    low

    Q&A highlights

    8

    “we had received an intimation of disapproval for Tower 2 last year, mentioned in FY 25 Annual Report and it's been over 12 months and we are still waiting for some final clearances... this time it's been mentioned 60 months.”

    Highlights regulatory hurdles and an extended project timeline for a major development, impacting future revenue streams.

    asked by Manjit Bauria

    2 min read6 chapters

    Detailed Narrative

    01

    Overall Financial Performance and Growth

    Nesco Limited achieved a significant milestone in the financial year ended March 2026, with total income crossing ₹1,000 crores for the first time, reaching ₹1,031 crores, which represents a 22% year-on-year increase. The company reported a robust EBITDA of ₹590 crores and a Profit After Tax (PAT) of ₹412 crores, marking a 10% growth over the previous year. This strong performance underscores the company's alignment with India's economic growth drivers and its diverse business model.

    02

    Business Segment Performance Review

    The Realty division continued to be a strong foundation, generating ₹398 crores in revenue with an 8.6% growth, and maintaining 100% occupancy in Towers 3 and 4. The Exhibition and Events business saw significant momentum, with revenue growing 30% to ₹260 crores, hosting over 135 events. The Foods division demonstrated exceptional growth, more than doubling its revenue by 107% to ₹238 crores, evolving into a popular entertainment destination. In contrast, the Engineering division reported lower revenue of ₹35 crores due to softer demand in certain capital goods sectors.

    03

    Capital Projects and Expansion Plans

    Work has commenced on Tower 2, a landmark integrated development, with an estimated investment of ₹3,500 crores, expected to be completed within 60 months of receiving the commencement certificate. The company is also undertaking the redevelopment of Hall 1 of the Bombay Exhibition Center, which is currently being dismantled and is projected to be operational within 12 months with a capex within ₹200 crores. The new Wayside Amenities vertical, with four sites under construction, is anticipated to begin operations by the end of the current financial year.

    04

    Financial Health, Liquidity, and Capital Allocation

    Nesco maintains a strong financial position, being debt-free with a liquidity of ₹1,471 crores. The company's treasury size stood at ₹1,650 crores as of June 2026, an increase from ₹1,520 crores in March 2026. Most capital expenditure plans are intended to be funded through internal accruals, with debt considered only as a last resort. In recognition of its performance, the Board has recommended a final dividend of ₹27 per share.

    05

    ESG and CSR Initiatives

    The company has made significant strides in its environmental, social, and governance (ESG) commitments, transitioning its entire Mumbai facility to 100% renewable energy. Towers 3 and 4 in its IT Park hold Platinum-rated Green Building certifications. Nesco has also commenced work on its ESG Roadmap 2030 to establish measurable goals. In FY26, the company contributed ₹8.30 crores towards impactful CSR initiatives, primarily focusing on education and healthcare, and supports two old age homes and senior citizen living facilities.

    06

    Shareholder Engagement and Future Outlook

    Nesco has committed to continuing virtual Annual General Meetings, acknowledging shareholder preference for accessibility. Management also indicated that they would explore arranging more regular investor con-calls, possibly on a bi-annual basis. The company's vision for the next 5-6 years is focused on enhancing and maximizing growth, exploring diversification opportunities, and achieving overall top-line and bottom-line expansion.

    This is an AI-generated summary of a publicly available earnings call transcript.