In the past three-four years post-Covid, as return-to-office, business meetings and outdoor activities (exhibitions, events/concerts, hospitality) saw strong traction, many businesses focused on these segments have been strong beneficiaries.
As a player operating in multiple segments — IT office park, exhibition centre, events hosting, food & beverages — Nesco has delivered on multiple fronts and generated stellar gains in its financials in recent years.
We had recommended a buy in the stock of Nesco at ₹888 in August 2024. The price has risen sharply over the past year or so. However, the company still remains an attractive bet on the exhibitions, commercial realty and hospitality spaces and is quite reasonably valued even at the current price.
At 1,345, the stock trades at 19 times its likely per share earnings for FY26. Though not strictly comparable, most realty players and those focused on commercial real estate trade over 25 times forward earnings and the BSE Realty index trades at a PE of over 48 times. Most hotels trade at multiples in excess of 35 times.
Investors can consider buying the Nesco stock even at the current levels with a three-year perspective, given the reasonably attractive valuations and robust traction in its key segments of operations.
The company continues to be debt-free as it has remained for the past several years.
In the three years from FY22 to FY25, Nesco’s revenue from operations rose at a compounded annual growth rate (CAGR) of 29.5 per cent to ₹732 crore in FY25, while net profits increased at 25.6 per cent over the same period to ₹375.2 crore. After a moderate FY25 (around 8 per cent topline growth year on year), the company’s revenues and net profits have bounced back in Q1FY26 with revenues and net profits increasing 36.8 per cent and 37.8 per cent, respectively in a YoY basis. A good part of the buoyancy is set to continue for the foreseeable future. A net profit margin in excess of 50 per cent is among the best in the industry.
Nesco’s return on equity is healthy at 15.23 per cent in FY25.
Multiple segments fire
As mentioned earlier, Nesco operates in multiple segments. The company runs an IT park/commercial realty segment with long-term clients. Then there is the Bombay Exhibition Centre that hosts various events, trade fairs, conferences and concerts/shows of star music performers and the like.
The foods division is another key segment spanning corporate catering and private parties, MICE (meetings, incentives, conferences and exhibitions), weddings and social events and outdoor catering.
There is a minor engineering division (Indabrator).
The Nesco IT Park main segment accounts for 50 per cent of the overall revenue of the company. It earns rentals and income from other value-added services rendered to commercial clients.
The company’s realty segment has 17.5 lakh sq ft of chargeable area, with 25,000 employees working in the Nesco IT park across 25 clients. Occupants include the likes of HSBC, KPMG, PWC, MSCI, BlackRock, Here Solution, Framestore, Priceline, Ericsson, Apollo Global, ISS Governance, Sodexo and Ericsson. Despite being a tough year for IT and ITeS segments, clients from other industries made up for the slow traction, as the segment itself grew 15.1 per cent in FY25 over FY24. Even in Q1FY26, the segment has grown at a healthy double-digit space.
Occupancies in a couple of its towers are nearing 100 per cent by the end of FY25.
The next largest revenue segment is the Bombay Exhibition Centre (BEC: 27.4 per cent of revenues in FY25).
IIJS Signature and IGJME 2025, National Garment Fair 2025, Acetech 2024, Automation Expo 2024 and HGH 2024 were some of the mega exhibitions hosted in 2025. With the ability to construct stalls based on varied customised requirements, the BEC is able to accommodate visitors on a large scale.
There is an events sub-segment within the BEC that hosts live concerts, spiritual meetings and other shows.
Also, as it operates in a prime location – Goregaon, it is able to receive significant traction for all events.
BEC’s revenue growth bounced back in Q1FY26 with 67.6 per cent rise year on year after an indifferent FY25.
Nesco foods is the third largest segment, accounting for 15.7 per cent of revenues in FY25. This segment grew at a healthy 16 per cent in FY25 over FY24. In Q1FY26, the segment’s revenues rose a strong 147.6 per cent.
In FY25 alone, the division had 36 new brand partner registrations and tie-ups with 17 event management agencies. As many as 193 corporate clients and 150 weddings were hosted in FY25.
According to a research report from Coherent Market Insights, the India meetings, conferences and exhibitions market, which is valued at $4.59 billion in 2025, would grow at a CAGR of 18 per cent from 2025-2032 and reach $14.62 billion by 2032.
A reasonably-established player such as Nesco is thus well placed to tap into this growing market over the long term.
Its smaller engineering division (6.9 per cent of revenues in FY25), Indabrator, focuses on manufacturing machinery, equipment and capital goods in the surface preparation and allied segments.
Published on October 25, 2025
