Welcome to Nesco Ltd, the company that decided Mumbai’s Goregaon should never sleep—between its IT towers packed with MNCs, the buzzing Bombay Exhibition Centre (BEC) where India sells everything from tractors to trinkets, and a hospitality arm feeding thousands daily. At ₹1,356 per share, Nesco’s market cap stands tall at ₹9,503 crore—like its Tower 4 itself. In the September 2025 quarter, it clocked ₹239 crore in sales and ₹119 crore in profit, boasting an OPM of 57% and a PBT of ₹143 crore.
The company is practically allergic to debt—₹0.97 crore only (basically a rounding error). Return on equity? 15.8%. ROCE? 21.1%. NPM? A fat 53%. No wonder its price-to-earnings ratio of 23 sits proudly above the industry median.
In a market where startups brag about “asset-light models,” Nesco flexes its opposite—real assets, real rent, real cash. And while the world burns through VC funding, Nesco quietly mints ₹414 crore of net profit (FY25), with 68.5% promoter holding that hasn’t moved an inch. Stability, thy name is Nesco.
Now, let’s walk through the carnival called Nesco FY25–26—a story of how to make crores by renting your own property and serving your own food at your own events.
2. Introduction
Once upon a time, Goregaon was just another Mumbai suburb. Then Nesco came along, built a massive exhibition center, rented towers to MNCs, cooked up a catering arm, and turned itself into a steady cash flow machine. While others are busy pivoting, Nesco has stuck to one thing for decades: renting space, throwing events, and collecting money. The company doesn’t produce much—unless you count profits.
The beauty of Nesco lies in its simplicity: rent space → earn rent → use rent to build more space → rent again. It’s capitalism in loop mode. And the loop works—revenues grew from ₹432 crore in FY20 to ₹831 crore in FY25, while PAT shot from ₹234 crore to ₹414 crore. Not bad for a “boring” real-estate-cum-event business.
FY25 was yet another exhibition of Nesco’s discipline. Every division—IT Parks, Exhibition Centre, Foods, and Indabrator (the machinery arm)—grew year-on-year. And with ₹1,494 crore of investments sitting quietly in debt funds, Nesco doesn’t just earn from rent—it earns from lending to others who pay rent. The irony is delicious.
And the best part? Unlike WeWork or Smartworks, Nesco doesn’t lose sleep over “occupancy ratios” or “cash burn.” Its occupancy is already 98%. It owns the land outright—no leases, no landlords, just legacy. Mumbai’s land appreciation is its second business model.
So buckle up—this is not a flashy unicorn. This is an elephant—calm, asset-heavy, and content in trampling competition quietly.
3. Business Model – WTF Do They Even Do?
Nesco has four profit engines:
1. IT Parks Division (41% of FY24 revenue): This is the cash cow. The company licenses office space in its Nesco IT Park, housing elite MNC tenants like HSBC, PWC, KPMG, MSCI, BlackRock, and Framestore. Towers 3 and 4 together offer over 1.6 lakh sq. mt. of space and are nearly fully occupied. The upcoming Tower 2, a ₹3,500 crore behemoth designed by Singapore’s Aedas Architects, will add 4.6 million sq. ft. of futuristic workspace with integrated hotel and amenities. Think of it as Mumbai’s Marina Bay clone with rent collection.
2. Bombay Exhibition Center (27% of FY24 revenue): If you’ve ever attended a “Mega Property Expo” or “Pet Fashion Week,” odds are you’ve walked into Nesco’s BEC. It’s India’s largest private exhibition venue, hosting 100+ events a year and pulling 2 million visitors. Revenue up 31% since FY20—and rising as India’s MICE (Meetings, Incentives, Conferences, Exhibitions) industry explodes post-COVID.
3. Nesco Foods (13% of FY24 revenue): The in-house caterer turned into a food empire. It feeds events, runs food courts, operates restaurants like Social, Smoke House Deli, and FOO, and is expanding to B2B catering outside Mumbai. The division grew 175% since FY20 and now serves 80,000 meals daily. Basically, it prints profits using dosa batter.
4. Indabrator (7% of FY24 revenue): The “hardware” business manufacturing shot blasting machines for industries like Defence, Railways, and NALCO. A small but mighty arm with 122% growth since FY20.
And yes, Nesco owns over 23 lakh sq. mt. of land in Goregaon—Mumbai’s gold mine. Half of it is still undeveloped. That’s like owning Bandra in 1970 and still deciding what to do with it.
4. Financials Overview
Quarterly Comparison Table (Consolidated Figures in ₹ crore):
Metric
Q2FY26 (Sep 2025)
Q2FY25 (Sep 2024)
Q1FY26 (Jun 2025)
YoY %
QoQ %
Revenue
239
192
193
24.5%
23.8%
EBITDA
136
120
110
13.3%
23.6%
PAT
119
107
96
11.2%
23.9%
EPS (₹)
16.88
15.17
13.64
11.3%
23.8%
At this rate, annualised EPS = 16.88 × 4 = ₹67.5. At CMP ₹1,356 → P/E = 20.1x. (Screener shows 23x, close enough).
Commentary: A company growing 25% in sales YoY with a 57% OPM is basically printing cash. Its other income (₹24 crore this quarter) is like dessert on top of a buffet. Debt-free, high cash reserves, and net profit margins that rival software firms—Nesco’s quarterly performance is a textbook example of “boring but brilliant.”
5. Valuation Discussion – Fair Value Range
Let’s calculate roughly:
EPS (TTM): ₹58.7
Industry P/E: 22.2
Nesco’s EV/EBITDA: 16.3
EBITDA (FY25): ₹479 crore
EV: ₹9,486 crore
Method 1: P/E Method
Using 3-year average P/E between 18–25x → Fair value = ₹1,056–₹1,467.
Method 2: EV/EBITDA
Industry range = 14–18x → Fair EV = 479 × 14–18 = ₹6,706–₹8,622 crore. After subtracting cash/investments (₹1,494 crore): Equity value = ₹8,200–₹10,100 crore → ₹1,160–₹1,430/share.
🎯 Educational Fair Value Range: ₹1,150–₹1,500 per share. (For education only, not investment advice. Or as SEBI would say: “Don’t blame us if you YOLO.”)
6. What’s Cooking – News, Triggers, Drama
Oh, there’s always something cooking at Nesco—sometimes literally.
New Tower 2 Development: ₹3,500 crore capex plan approved in June 2025 for a mega 4.6 million sq. ft. integrated IT Park expansion. This could double leasing capacity and revenues over 6 years.
