Nelco Limited reported a consolidated net profit of ₹1.73 crore for the quarter ended September 30, 2026, marking a 6.8% increase from ₹1.62 crore in the corresponding period last year.

The Tata enterprise's consolidated revenue from operations grew 5.1% year-on-year to ₹7.81 crore. The improvement in bottom line was supported by strong operating performance and effective cost management during the second quarter of fiscal 2027.

Consolidated Financial Performance

The company logged total income of ₹8.07 crore in Q2FY27, up from ₹7.56 crore in Q2FY26. Operating expenses rose marginally, but the growth in income from operations outpaced the rise in costs, leading to an expansion in pre-tax profits.

Standalone Results and Segment Details

On a standalone basis, Nelco posted a net profit of ₹3.47 crore for Q2FY27, compared to ₹2.71 crore in the same quarter last year. Standalone revenue from operations stood at ₹5.28 crore, reflecting steady demand in its core business.

The company operates in a single reportable segment, Network Systems. During the quarter, Nelco invested ₹191.10 crore ($20 million) in Compulsorily Convertible Debentures issued by Elveo Mobile, Inc., signaling a strategic expansion into new technology verticals.

What the Numbers Show

A divergence between standalone and consolidated profitability highlights the impact of subsidiary performance. While standalone net profit surged 28% YoY to ₹3.47 crore, consolidated net profit grew only 6.8% to ₹1.73 crore. This gap suggests that the subsidiary, Nelco Network Products Limited, likely incurred losses or lower margins that diluted the holding company's strong standalone gains. Additionally, finance costs rose significantly to ₹3.44 crore in Q2FY27 from ₹1.52 crore in Q2FY26, partly due to new borrowings linked to recent investments.

Nelco has completed its $20 million investment in Lunar Holdco, Inc., which operates under the brand Elveo Mobile, to advance its presence in satellite direct-to-device (D2D) and Internet of Things (IoT) services. The company aims to expand commercial door-to-door services in India and South Asia, with a target to launch direct-to-device satellite services by 2028. The transaction was executed on August 17, 2026, pursuant to approvals from the Board of Directors and shareholders obtained on June 13, 2026.

Investment details

The following table summarises the key parameters of the transaction:

The investment is structured as a subscription to Compulsorily Convertible Debentures (CCDs) carrying a 7% annual compounded return. These instruments will convert into equity shares of Lunar in accordance with the terms specified in the CCD documentation. The percentage of shareholding acquired upon conversion is not presently determinable and will depend on specific conversion events. The investment does not confer control over Lunar.

Strategic context

Lunar Holdco, incorporated in Delaware, USA, on January 27, 2026, is a pre-revenue company formed from the merger of legacy entities Lynk Global and Omnispace. It is focused on developing a next-generation global Non-Geostationary Satellite Orbit (NGSO) network to support D2D, IoT, and mobile satellite connectivity services. The company is backed by strategic investors, including SES, one of the world's leading satellite communications operators.

The investment reflects Nelco's intent to establish a long-term partnership with Lunar for the provision, distribution, and commercialization of satellite-based D2D and IoT communication services in India and other countries. This move provides Nelco with strategic access to emerging satellite connectivity solutions, supporting growth opportunities in the satellite ecosystem.

Regulatory and operational status

Lunar has not yet commenced commercial operations in India. The commencement of services in India will be subject to obtaining applicable approvals, licenses, and authorizations under telecommunications, satellite communications, and other applicable laws. The investment by Nelco falls under the automatic route for foreign direct investment and is subject to applicable regulatory filings and compliances.

This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.