The investment appeared to weigh on sentiment as Nelco is committing $20 million to a pre-revenue company, while its eventual equity stake in Lunar is not presently determinable. The company said the investment does not confer control over Lunar.

Nelco said the strategic investment is aimed at establishing a long-term partnership with Lunar for the provision, distribution and commercialisation of satellite-based D2D, IoT and related communication services in India and other countries. Commercial operations by Lunar in India will remain subject to applicable regulatory approvals, licences and authorisations.

Under the partnership, Nelco will bring Elveo's satellite connectivity and computing solutions to sectors including automotive, maritime, energy and government. Potential applications include vehicle telematics, fleet and asset tracking, infrastructure monitoring, remote operations, disaster response and business continuity.

The transaction was completed on 17 August 2026 following board and shareholder approvals. Lunar was formed in January 2026 through the merger of Lynk Global and Omnispace and is backed by strategic investors including SES.

Nelco, a part of the Tata Group, is a leading satellite communication service provider in India, providing connectivity solutions across the country. The company's next-gen communication services span across all critical segments—Enterprise, Government, Defence, Maritime, and Aero-IFC —addressing unique connectivity challenges in varied terrains and regions across India, Indian waters and Indian skies. Nelco partners with multiple global technology and Satcom players to strengthen its offerings and expand its reach.

On a consolidated basis, NELCO's net profit rose 30% to Rs 2.34 crore while net sales rose 7.01% to Rs 80.03 crore in Q1 June 2026 over Q1 June 2025.