NELCO LimitedQ2 FY27 Results & Financial Update
NELCO Limited: Q2 FY27 consolidated results and company financials – revenue ₹78.14 Cr, PAT ₹1.73 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Find an answer
Ask this result
Chart · Market context
NELCO price & chart
Market price₹743.95
1Y return—Price return
Loading market chart…
TradingView Lightweight Charts™ · Copyright © 2025 TradingView, Inc.TradingView
Market chartPrice chart temporarily unavailableThe price chart could not be loaded right now. The reported financial results remain available above.
Spotted a factual error?Tell us the number, date or statement and we will re-check the underlying records and calculations.Report an error
Quarterly Results AnalysisExplore NELCO Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
During the second quarter of fiscal year 2027 (Q2 FY27), NELCO reported consolidated revenue from operations of INR 78.14 crore, representing a modest sequential contraction of 2.36% compared to INR 80.03 crore in Q1 FY27.
Total consolidated income for the quarter stood at INR 80.65 crore, supported by INR 2.51 crore of other income, keeping total top-line performance stable relative to the preceding quarter's INR 80.17 crore.
Profit before tax (PBT) for Q2 FY27 declined sequentially by 23.64% to INR 2.39 crore from INR 3.13 crore in Q1 FY27, weighed down by higher financing costs and increased depreciation expenses.
Consolidated net profit (PAT) for the quarter settled at INR 1.73 crore, marking a 26.07% decrease compared to INR 2.34 crore reported in the preceding quarter.
Basic and diluted earnings per share (EPS) for Q2 FY27 stood at INR 0.76, down from INR 1.02 in the previous quarter.
Total quarterly expenses were managed at INR 69.02 crore, showing a slight improvement from INR 71.71 crore in Q1 FY27, driven by lower employee benefit expenses and reduced other expenses.
During the quarter, the company completed a major strategic investment by injecting INR 191.10 crore (USD 20 million) into Compulsorily Convertible Debentures (CCDs) issued by Lunar Holdco, Inc. (now known as Elveo Mobile, Inc.).
01 · Business model
What does NELCO do?
NELCO Limited operates primarily in the Network Systems domain, providing satellite communication (VSAT) services, network integration, and related enterprise connectivity solutions to various corporate and institutional clients in India.
The company functions as part of the Tata group, leveraging technological capabilities to deliver secure, reliable network services across remote and distributed enterprise locations.
The consolidated group structure includes the holding company NELCO Limited, its subsidiary Nelco Network Products Limited, and an associate entity, Piscis Networks Private Limited.
Operations are managed as a single reportable business segment focused entirely on Network Systems and associated infrastructure support.
02 · Historical context
What shaped the business before this quarter
Following the notification of four new Labour Codes by the Government of India in November 2025, the company previously recognized an incremental impact of INR 3.81 crore as an exceptional item in FY26, subsequently reversing INR 1.06 crore of retirement benefit provisions in Q1 FY27 upon completing its payroll restructuring.
For the prior financial year ended March 31, 2026, the holding company distributed a final dividend of INR 1.00 per equity share (10%), which was approved by shareholders at the Annual General Meeting held on June 24, 2026.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹78.14 Cr | ₹80.03 Cr |
| Total income | ₹80.65 Cr | ₹80.17 Cr |
| Profit before tax | ₹2.39 Cr | ₹3.13 Cr |
| Profit after tax | ₹1.73 Cr | ₹2.34 Cr |
| EPS | ₹0.76 | ₹1.02 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 2.2% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 3.1% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹2.51 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue from operations reached INR 78.14 crore for Q2 FY27, reflecting a slight sequential softening of 2.36% compared to INR 80.03 crore in Q1 FY27.
Other income surged significantly to INR 2.51 crore in Q2 FY27 from INR 0.14 crore in Q1 FY27, cushioning total income which stood at INR 80.65 crore.
What drove margins
Total expenses decreased sequentially to INR 69.02 crore in Q2 FY27 from INR 71.71 crore in Q1 FY27, aided by reductions in employee benefit expenses (INR 12.32 crore vs INR 13.24 crore) and other expenses (INR 11.29 crore vs INR 13.71 crore).
Finance costs escalated to INR 3.44 crore in Q2 FY27 compared to INR 1.27 crore in Q1 FY27, while depreciation and amortisation expenses rose to INR 5.80 crore from INR 5.12 crore, exerting downward pressure on bottom-line margins.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The group continues to evaluate its operations under a single reportable segment, namely Network Systems, in accordance with Ind AS 108.
06 · Strategy & new businesses
How the company is trying to change its growth mix
During Q2 FY27, NELCO invested INR 19,110 lakhs (USD 20 million) in Compulsorily Convertible Debentures (CCDs) issued by Lunar Holdco, Inc. (now known as Elveo Mobile, Inc.), which are convertible into equity instruments in accordance with the investment agreement.
07 · Reported developments
What changed operationally
Total consolidated income remained resilient at INR 80.65 crore in Q2 FY27, supported by a sharp increase in other income and controlled operating overheads.
08 · Pressure points & risks
What is not going smoothly
Profit before tax and net profit experienced double-digit sequential declines due to higher finance costs and increased depreciation charges during the quarter.
09 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
For the six months ended September 30, 2026, net cash generated from operating activities stood at INR 48.81 crore, compared to INR 11.13 crore for the corresponding period of the previous year.
Net cash used in investing activities for the six-month period was INR 224.42 crore, primarily driven by the INR 191.10 crore investment in Compulsorily Convertible Debentures and capital expenditures.
Capital allocation & funding
Non-current borrowings stood at INR 194.17 crore as of September 30, 2026, up from nil as of March 31, 2026, while current borrowings stood at INR 36.48 crore compared to INR 58.77 crore at the end of the previous fiscal year.
10 · Beyond the numbers
What changed beyond the numbers
Reported update
Corporate Name Change for Investee
Lunar Holdco, Inc., in which NELCO invested INR 19,110 lakhs via CCDs during the quarter, has been renamed Elveo Mobile, Inc.
11 · Previous-quarter changes
What changed since the previous quarter
Compared to Q1 FY27, operating revenue moved from INR 80.03 crore to INR 78.14 crore, while net profit decreased from INR 2.34 crore to INR 1.73 crore.
12 · Key Q&A
The quarter, answered directly
What does NELCO do?
NELCO Limited operates primarily in the Network Systems domain, providing satellite communication (VSAT) services, network integration, and related enterprise connectivity solutions to various corporate and institutional clients in India.
What is the clearest takeaway from Q2 FY27?
During the second quarter of fiscal year 2027 (Q2 FY27), NELCO reported consolidated revenue from operations of INR 78.14 crore, representing a modest sequential contraction of 2.36% compared to INR 80.03 crore in Q1 FY27.
What drove revenue or demand?
Revenue from operations reached INR 78.14 crore for Q2 FY27, reflecting a slight sequential softening of 2.36% compared to INR 80.03 crore in Q1 FY27.
What mattered most for margins or profitability?
Total expenses decreased sequentially to INR 69.02 crore in Q2 FY27 from INR 71.71 crore in Q1 FY27, aided by reductions in employee benefit expenses (INR 12.32 crore vs INR 13.24 crore) and other expenses (INR 11.29 crore vs INR 13.71 crore).
What changed operationally beyond the headline numbers?
During Q2 FY27, NELCO invested INR 19,110 lakhs (USD 20 million) in Compulsorily Convertible Debentures (CCDs) issued by Lunar Holdco, Inc. (now known as Elveo Mobile, Inc.), which are convertible into equity instruments in accordance with the investment agreement.
What are the main pressure points disclosed for the quarter?
Profit before tax and net profit experienced double-digit sequential declines due to higher finance costs and increased depreciation charges during the quarter.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Financing Cost Trajectory: Monitor the ongoing impact of higher non-current borrowings and associated finance costs on consolidated profitability in upcoming quarters.
- 02
Elveo Mobile Investment Progress: Track further updates regarding the development and conversion milestones associated with the USD 20 million investment in Elveo Mobile, Inc. CCDs.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.