Nelco Q2 Profit Jumps 7%, EBITDA Margin Reaches 11.7%

Shares slid 5.16% to ₹782 on October 19 after Nelco reported a modest 7% YoY rise in profit after tax to ₹1.73 crore.

Revenue from operations climbed 5.1% YoY to ₹78.14 crore, while total expenses nudged up 3.23% to ₹69.02 crore. EBITDA jumped 22% year‑on‑year to ₹9.1 crore, pushing the margin to 11.7% from 10% a year earlier.

Quarter‑on‑quarter, revenue fell 2.36% to ₹80.03 crore, and PAT dropped 26.07% to ₹1.73 crore from ₹2.34 crore in June. Expenses eased 3.75% to ₹71.71 crore, indicating tighter cost control.

Nelco disclosed a $20 million investment in Lunar Holdco, Inc. through compulsorily convertible debentures that yield 7% compounded annually and convert into equity. The move signals a push into satellite‑based IoT services in India and abroad.

Next earnings call is slated for November 15, where investors will probe guidance on revenue trajectory and debt dilution post‑Lunar investment. The stock’s YTD gain of 8.08% sits against a 15.95% monthly slide, underscoring short‑term volatility.