Synopsis:
The shares of this Tata Group firm opened up high today & surged, backed by grant of licence, after being sideways for a long time since earnings came out.
The shares of this company, focused on helping its enterprise & government customers unlock potential by offering solutions in the areas of VSAT connectivity, Satcom Projects and Integrated Security & Surveillance Solutions, are in focus today, here’s why.
With market capitalization of Rs. 1,988.17 Crore, NELCO Ltd’s shares made a day high on Wednesday of Rs. 884.60 per share, up by 6 percent from its previous day’s close price of Rs. 834.35 per share. The share has given a return of 357 percent over a period of five years.
What is the news
The company got a grant of UL VNO-GMPCS license, from Government of India, Ministry of Communications, Department of Telecommunications. The validity of the license is 10 years, note that the Company’s Unified License and the validity of the additional UL VNO-GMPCS Services authorization will be co-terminus with the validity of the Unified License(VNO).
This license will allow Nelco to sell VSAT(Very Small Aperture Terminal) services that are provided by other companies that hold the full UL-GMPCS license. VNO (Virtual Network Operator) means the company can offer services using another company’s infrastructure or network, without owning them itself. This will help the company expand its ability to offer a wider range of satellite communication services to its customers by partnering with other licensed providers.
About the company
Nelco, a part of the US $ 116 Bn Tata group, started in 1940 is focused on helping its enterprise & government customers unlock potential by offering solutions in the areas of VSAT connectivity, Satcom Projects and Integrated Security & Surveillance Solutions.
Nelco Limited holds the VSAT license being one of the India’s leading provider in it, Internet Service Provider (ISP) license as well as the Inflight & Maritime Communication (IFMC) license issued by Department of Telecommunication, Government of India (DOT), with adding UL VNO-GMPCS license to portfolio.
The company aside from its VSAT business, offer end to end networking solutions (Satcom Projects) and maintenance of private hubs and hybrid networks for its customers, from government to corporates.
Revenue declined by 10 percent to Rs. 74.3 crore in Q2 FY26 from Rs. 82.6 crore in Q2 FY25. EBIDT declined by 31 percent to Rs. 7.47 crore in Q2 FY26 from Rs.10.8 crore in Q2 FY25. Accompanied by Net profit growth decline by 60 percent YoY to Rs.1.62 crore in Q2 FY26 and EPS down by 61 percent YoY to Rs. 0.71 per share.
Written by Gourav Pratap SIngh
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