Nelco, the Tata Group's satellite communication services company, reported a 6.79% year-on-year increase in consolidated profit after tax (PAT) 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. According to reports from CNBC TV18, the company's earnings before interest, tax, depreciation and amortisation (EBITDA) grew 22% year-on-year to ₹9.1 crore from ₹7.5 crore, with EBITDA margin expanding to 11.7% from 10% a year earlier.
On 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. As reported by CNBC TV18, this sequential decline reflects the typical seasonal patterns in the satellite communications sector, with the company maintaining overall positive year-on-year growth despite quarterly fluctuations.
This follows Nelco's August 17 announcement that it had invested $20 million in Lunar Holdco, Inc. through compulsorily convertible debentures (CCDs). The strategic investment aims to establish a long-term partnership for satellite-based direct-to-device (D2D), Internet of Things (IoT) 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. According to CNBC TV18, this investment positions Nelco to capitalize on emerging satellite communication technologies and expand its service offerings beyond traditional satellite services.
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. As reported by CNBC TV18, the stock's performance reflects broader market conditions and investor sentiment toward the satellite communications sector. The recent decline suggests market uncertainty despite the company's positive quarterly results and strategic expansion plans.
