NESCO Q1 FY26: ₹96 Cr Profit + The IT Park That Prints Money

NESCO Q1 FY26: ₹96 Cr Profit + The IT Park That Prints Money

At a Glance

NESCO just dropped its Q1 FY26 results and – surprise, surprise – the Mumbai-based IT park landlord is still the king of collecting rent without breaking a sweat. Revenue at ₹193 Cr (+36.8% YoY) and Net Profit at ₹96 Cr (+37.9% YoY) scream “steady cash cow”. With 98% occupancy and tenants like HSBC and KPMG basically paying them to exist, this is one of those rare Indian companies where you could sleep through a market crash and still wake up richer.


Introduction

Imagine running a business where you just build glass towers, lease them to multinational tenants, and watch cash rain like Mumbai monsoons. That’s NESCO for you – landlord to the who’s who of corporate India. While other firms sweat over input costs and forex risks, NESCO just chills in Goregaon, counting rental cheques and occasionally hosting exhibitions. Q1 FY26 numbers confirm: their growth is smoother than their premium office tiles.

The company’s diversification – IT Parks, Exhibition Grounds, Capital Equipment, and Hospitality – is like having multiple streams of passive income, but with one leg clearly stronger (hint: IT Parks are doing all the heavy lifting).


Business Model (WTF Do They Even Do?)

NESCO operates in four segments:

  1. IT Parks – Cash cow. Towers leased to MNCs like HSBC, PwC, MSCI. 98% occupancy. Rental escalations baked in. No drama.
  2. Exhibition Grounds – Bombay Exhibition Centre (BEC) is their Disneyland for trade fairs. Think Comic Con, but with more business suits.
  3. Capital Equipment – They manufacture heavy machinery (via Indabrator). A small but stable revenue contributor.
  4. Hospitality & Catering – Feeding thousands of corporate workers daily. Because someone has to serve the sandwiches.

Essentially, they’re part landlord, part event host, part machine-maker, part canteen manager – but 90% of the profits still come from the IT park.


Financials Overview

Q1 FY26 was another quarter of “sit back and collect rent”:

  • Revenue: ₹193 Cr (+36.8% YoY)
  • EBITDA: ₹110 Cr (EBITDA margin 57%)
  • Net Profit: ₹96 Cr (+37.9% YoY)
  • EPS: ₹13.65

Yearly, FY25 revenue stood at ₹784 Cr, Net Profit ₹402 Cr. Margins? Juicy 59% OPM and 51% PAT margin. Competitors dream of this.

Commentary? This is one of those rare companies where even “Other Income” (₹28 Cr) adds nicely to profits instead of being a one-off.


Valuation

NESCO trades at a P/E of 22.5, fair given its cash generation and growth.

1. P/E Method:

EPS (TTM) = ₹57.
Fair P/E range = 20–25.
Fair Value = ₹1,140 – ₹1,425

2. EV/EBITDA:

EBITDA (TTM) = ₹462 Cr.
EV/EBITDA multiple = 15–17x.
Enterprise Value ≈ ₹6,930 – ₹7,850 Cr.
Per share ≈ ₹1,200 – ₹1,350.

3. DCF:

Assuming 10% growth for 5 years, 5% terminal, 10% discount rate →
Fair Value ≈ ₹1,300

Conclusion: Stock is trading close to its fair value; upside is linked to future rental escalations and new tower developments.


What’s Cooking – News, Triggers, Drama

  • Tower 5 Expansion – New commercial space under construction; expected to drive future revenue.
  • BEC Redevelopment – Could turn into a cash monster once upgraded.
  • Hospitality Upgrades – They’re actually investing in making food more than just edible.
  • Zero Debt – Makes them immune to rate hikes.

Drama? The only “drama” is whether tenants will keep renewing leases. Spoiler: they will.


Balance Sheet

(₹ Cr)FY25
Assets3,016
Liabilities385
Net Worth2,629
Borrowings1

Auditor Roast: Balance sheet cleaner than your WhatsApp chat after deleting evidence.


Cash Flow – Sab Number Game Hai

(₹ Cr)FY23FY24FY25
Operating297377349
Investing-266-334-315
Financing-24-33-42

Remark: They invest back into properties like a landlord with infinite patience. Financing outflow? Just dividends.


Ratios – Sexy or Stressy?

RatioValue
ROE15.8%
ROCE21.1%
P/E22.5x
PAT Margin51%
D/E0.00

Takeaway: Debt-free, high ROCE. Basically, a dream date for conservative investors.


P&L Breakdown – Show Me the Money

(₹ Cr)FY23FY24FY25
Revenue546678784
EBITDA368426462
PAT291363402

Comment: Margins so fat they need a gym subscription.


Peer Comparison

CompanyRevenue (₹ Cr)PAT (₹ Cr)P/E
NESCO78440222.5
International Geo1,12049137
CMS Info Systems2,45337520
Nirlon63621821

Comment: NESCO doesn’t have the scale of some peers but has better margins and cleaner books.


Miscellaneous – Shareholding, Promoters

  • Promoter Holding: 68.54% (rock solid)
  • FIIs: 4.9% (slowly increasing)
  • DIIs: 3% (they seem sleepy)
  • Public: 23.5% (retail investors love the dividend)

Promoter Bio: The Jain family runs NESCO like an old-school landlord – conservative, cautious, and cash-loving.


EduInvesting Verdict™

NESCO is what happens when a company decides, “Why innovate when we can just lease space?” The IT park is the goose that lays golden eggs, exhibitions are gravy, and machinery is the side hustle. Q1 FY26 numbers scream consistency – double-digit growth, fat margins, and zero debt.

SWOT Analysis:

  • Strengths: 98% occupancy, cash-rich, no debt, high margins.
  • Weaknesses: Overdependence on IT park rentals.
  • Opportunities: Tower 5, BEC redevelopment, growing FII interest.
  • Threats: Economic slowdown or tenant churn (unlikely).

This is the kind of stock you buy, forget, and accidentally rediscover when it’s doubled. But don’t expect it to moonshot overnight – it’s more like sipping compounding coffee.


Written by EduInvesting Team | 30 July 2025

SEO Tags: NESCO, IT Parks, Commercial Real Estate, Q1 FY26 Results

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