NELCO , a prominent player in the satellite communications sector, has received a significant regulatory boost. The Department of Telecom (DoT) has issued a Letter of Intent to NELCO, granting approval for the company's GMPCS VNO (Global Mobile Personal Communications by Satellite Virtual Network Operator) license.

Key Highlights

• Regulatory Approval: The Department of Telecom has sent a Letter of Intent to NELCO.
• License Type: GMPCS VNO (Global Mobile Personal Communications by Satellite Virtual Network Operator) license.
• Implications: This approval allows NELCO to operate as a virtual network operator in the satellite communications sector.

Significance of the Approval

This regulatory green light marks a crucial milestone for NELCO, positioning the company to expand its footprint in the satellite communications industry. As a virtual network operator, NELCO will have the opportunity to provide satellite-based communication services without owning the underlying network infrastructure.

The GMPCS VNO license opens up new avenues for NELCO to offer innovative satellite communication solutions. This development could potentially enhance connectivity options, especially in remote or underserved areas where traditional terrestrial networks may be limited or unavailable.

Industry Impact

NELCO's entry into the GMPCS VNO space may contribute to increased competition and innovation in the satellite communications sector. As the demand for global connectivity continues to grow, particularly for applications such as IoT (Internet of Things), maritime communications, and remote area connectivity, NELCO's new license positions the company to address these evolving market needs.

This approval also aligns with the broader trend of expanding satellite communication services, which play a crucial role in bridging the digital divide and enabling connectivity in challenging geographical locations.

As NELCO moves forward with this new license, industry observers will be keen to see how the company leverages this opportunity to introduce new services and potentially reshape the satellite communications landscape in India.

NELCO , a prominent player in the Network Systems segment, has announced its financial results for the second quarter and first half of the fiscal year 2026. The company's performance shows a mixed picture with declining profits but stable revenue streams.

Q2 FY26 Consolidated Performance Highlights

NELCO reported a consolidated net profit of Rs 162.00 lakhs for the quarter ended September 30, 2025, marking a significant decline of 60.50% compared to Rs 410.00 lakhs in the same quarter of the previous year. The total income for Q2 FY26 stood at Rs 7,561.00 lakhs, down by 9.40% from Rs 8,346.00 lakhs in Q2 FY25.

H1 FY26 Performance

For the first half of FY26, NELCO's consolidated net profit was Rs 342.00 lakhs, a substantial decrease from Rs 866.00 lakhs in the corresponding period of the previous year. The company's total income for H1 FY26 amounted to Rs 15,097.00 lakhs, compared to Rs 15,765.00 lakhs in H1 FY25.

Key Financial Metrics

• Operating Expenses: The company reported operating expenses of Rs 3,379.00 lakhs in Q2 FY26, down from Rs 3,855.00 lakhs in Q2 FY25.
• Employee Benefits Expenses: There was a slight increase in employee benefits expenses to Rs 1,197.00 lakhs in Q2 FY26 from Rs 1,144.00 lakhs in the same quarter last year.
• Finance Costs: Finance costs increased to Rs 152.00 lakhs in Q2 FY26 from Rs 141.00 lakhs in Q2 FY25.

Dividend Announcement

The Board of Directors has approved a final dividend of Rs 1.00 per equity share (10%) for the financial year ended March 31, 2025, which was paid out during the current fiscal year.

Segment Performance

NELCO continues to operate primarily in the Network Systems segment. The company's focus remains on providing network solutions and services to its clientele.

Balance Sheet Highlights

As of September 30, 2025, NELCO's consolidated balance sheet showed:

The company's financial position remains stable with a slight increase in total assets and equity compared to the end of the previous fiscal year.

Management Commentary

While specific management comments were not provided in the financial results, the consistent dividend payout suggests confidence in the company's financial stability despite the decline in profits.

NELCO's Q2 FY26 results reflect challenges in maintaining profitability amidst a slightly contracting revenue base. The company's ability to manage operating expenses and maintain its dividend policy will be crucial factors to watch in the coming quarters as it navigates through the current financial landscape.