Nelco Q2 Results: Tata Group firm posts 7% profit growth, margin expands
The Tata Group satellite communications company’s revenue grew 5.1% year-on-year, while profit fell 26% from the June quarter. Nelco had invested $20 million in Lunar Holdco in August.
Nelco, the Tata Group’s satellite communication services company, reported a 6.79% year-on-year increase in consolidated profit after tax to ₹1.73 crore in the September quarter of FY27, compared with ₹1.62 crore in the corresponding quarter last year.Revenue from operations rose 5.1% year-on-year to ₹78.14 crore from ₹74.33 crore in the year-ago period. Total expenses increased 3.23% to ₹69.02 crore from ₹66.86 crore.The company’s earnings before interest, tax, depreciation and amortisation grew 22% year-on-year to ₹9.1 crore from ₹7.5 crore. EBITDA margin expanded to 11.7% from 10% a year earlier.
Sequential performanceOn a quarter-on-quarter basis, Nelco’s consolidated revenue from operations declined 2.36% from ₹80.03 crore in the June quarter. Total expenses fell 3.75% from ₹71.71 crore.Consolidated PAT decreased 26.07% from ₹2.34 crore in the preceding quarter to ₹1.73 crore in the September quarter. Also read: Piramal Finance Q2 results: Profit surges 65% as revenue climbs to ₹3,659 crore This follows Nelco’s August 17 announcement that it had invested $20 million in Lunar Holdco, Inc. through compulsorily convertible debentures .
The strategic investment aims to establish a long-term partnership for satellite-based direct-to-device , Internet of Things and related communication services in India and other markets. The CCDs carry a 7% annual compounded return and are convertible into equity shares of Lunar.Nelco shares closed 5.16% lower at ₹782 on October 19. The stock has gained 8.08% year-to-date but has declined 7.61% over the past week and 15.95% over the past month.
It has fallen 8.94% in the past three months, while gaining 17.38% over six months. Over the longer term, the stock has declined 11.17% in one year, 20.73% in two years, 0.73% in three years and 10.57% in five years.
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