Mercury EV-Tech Ltd (MERCURYEV)
🎯 Key Takeaways
- Mercury EV-Tech Ltd operates in the electric vehicle (EV) components space with a focus on niche EV subsystems, but its financial profile reflects a pre-revenue or early-stage commercialization phase marked by persistent losses and low margins. The company has shown incremental revenue growth in recent quarters, yet remains unprofitable on an operational basis, with ROE and ROCE near zero.
- Revenue grew 65.2% QoQ to ₹33 in Q1FY27.
- ⚠️ Persistent operational losses and negative operating cash flow (₹-44 crore in March 2025 OCF) raise concerns about sustainability without external fun
- Market Cap
- ₹740
- P/E Ratio
- 155.7
- P/B Ratio
- 3.86
- ROE
- 2.4%
- ROCE
- 3.9%
- Debt/Equity
- 0.03
- Promoter
- 59.2%
📖 The Story
Mercury EV-Tech Ltd operates in the electric vehicle (EV) components space with a focus on niche EV subsystems, but its financial profile reflects a pre-revenue or early-stage commercialization phase marked by persistent losses and low margins. The company has shown incremental revenue growth in recent quarters, yet remains unprofitable on an operational basis, with ROE and ROCE near zero. It is currently in a developmental and capital-intensive phase, relying on equity reserves and modest cash inflows to fund operations.
📰 What's Happening
In the latest board meeting on August 31, 2026, the company finalized its annual report and scheduled the 40th AGM for September 28, 2026, with a book closure date of September 19-26. Earlier, on August 13, 2026, it approved unaudited Q1 FY2026-27 results, replaced the secretarial auditor with Nisarg Sharma & Associates, and noted the forfeiture of 4.53 million convertible warrants, transferring ₹85.07 crore to capital reserve. These actions reflect routine governance updates and capital restructuring rather than operational milestones. The company has not announced new product launches, capacity expansions, or customer acquisitions in recent filings.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 23 | 34 | 25 | 20 | 33 |
| Operating Profit | 2 | 2 | 1 | -3 | 2 |
| OPM % | 8.0% | 5.3% | 5.5% | -17.2% | 7.0% |
| Net Profit | 2 | 2 | 1 | 0 | 2 |
| EPS | ₹0.07 | ₹0.09 | ₹0.05 | ₹0.02 | ₹0.09 |
Revenue has shown volatility but no clear upward trajectory — ₹33 crore in June 2026, down from ₹34 crore in September 2025, with margins remaining thin and inconsistent. Operating losses widened in March 2026 (-₹3 crore) before a slight recovery in June, indicating operational instability. Despite modest EPS improvements, net profit remains volatile and near zero, reflecting high fixed costs or low utilization. The financial trend does not yet align with scalable profitability, and growth appears stagnant or contracting in the latest quarter.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue targets, margins, or timelines for profitability in the reviewed filings. There is no mention of new order wins, customer onboarding, or production ramp-up plans in the latest board meeting summaries or financial result announcements. The absence of strategic commentary on growth drivers or market expansion suggests limited visibility into near-term catalysts.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2024 | Mar 2025 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 18 | 19 | 18 | 19 |
| Reserves | 63 | 173 | 62 | 261 |
| Borrowings | 56 | 6 | 75 | 7 |
| Total Liabilities | 151 | 336 | 188 | 358 |
| Fixed Assets | 36 | 44 | 39 | 92 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 151 | 336 | 188 | 358 |
The balance sheet shows stable equity levels with a significant increase in reserves — from ₹62 crore in March 2025 to ₹261 crore in March 2026 — driven largely by the ₹85.07 crore transfer from warrant forfeiture. Borrowings remain minimal (₹7 crore), indicating low leverage and reliance on internal capital or non-debt financing. Asset growth has been modest, rising from ₹188 crore to ₹358 crore over two years, but this reflects reserve accumulation rather than operational asset expansion. Capital is being preserved rather than aggressively deployed for growth.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | -44 |
| Investing | -90 |
| Financing | +139 |
| Net Cash Flow | +5 |
👥 Shareholding Pattern
| Category | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|
| Promoters | 59.2% | 59.2% | 59.2% |
| FII | 2.7% | 2.4% | 1.7% |
| DII | 0.0% | 0.0% | 0.0% |
| Public | 29.9% | 31.4% | 32.3% |
| # Shareholders | 75,914 | 76,425 | 75,062 |
Promoter holding remains stable at 59.18%, suggesting confidence or limited exit intent. However, FII allocation has fluctuated — declining from 2.68% in Q3FY26 to 1.7% in Q1FY27 — with no corresponding increase in DII or public interest. The shrinking foreign investor footprint, despite stable promoter stakes, may signal cautious sentiment among institutional investors. The growing number of shareholders (75,062) could reflect retail interest or stock splitting, but lacks depth in institutional conviction.
⚖️ Peer Comparison — Automobile
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| MARUTI | 3.79 L Cr | 26.4 | 17.6% | — | 0.00 |
| M&M | 3.72 L Cr | 18.1 | 16.4% | — | 1.42 |
| BAJAJ-AUTO | 3.08 L Cr | 26.1 | 27.5% | — | 0.57 |
| EICHERMOT | 1.98 L Cr | 34.3 | 29.6% | — | 0.01 |
| TVSMOTOR | 1.94 L Cr | 56.6 | 18.6% | — | 3.30 |
| HYUNDAI | 1.67 L Cr | 33.7 | 31.9% | — | 0.05 |
| TMCV | 1.59 L Cr | 38.0 | 38.2% | — | 0.38 |
| HEROMOTOCO | 1.08 L Cr | 19.8 | 33.1% | — | 0.02 |
| TMPV | 1.04 L Cr | — | -0.5% | — | 0.62 |
| ASHOKLEY | 91,280 | 26.3 | 13.0% | — | 4.47 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Persistent operational losses and negative operating cash flow (₹-44 crore in March 2025 OCF) raise concerns about sustainability without external funding. 2. Revenue stagnation and margin volatility suggest weak market traction or pricing pressure in the EV components segment. 3. Heavy reliance on capital reserves from warrant forfeiture to shore up reserves does not address underlying business model weaknesses. 4. Low ROCE and ROE indicate poor capital efficiency, with no clear path to improvement given current scale.
📋 Recent Filings
- Announcement2026-09-25Mercury EV-Tech Ltd announced that its trading window will close on October 1, 2026, for all insiders and designated persons until 48 hours after the …
- 🔴 Announcement2026-09-11Mercury EV-Tech announced it added 100 new dealers across India over four months and aims to add 200 more by March 2027, while securing Gujarat Energy…
- 🟡 Board Meeting2026-09-08Mercury EV-Tech held its 40th AGM on September 30, 2026 via video conference, adopting audited FY2025-26 financials and appointing Tejas K. Soni as st…
- 🔴 annual report2026-09-08Mercury EV-Tech Ltd reported FY 2025-26 revenue of **₹10,793.67 crores**, up from ₹9,309.03 crores, but profit after tax fell to **₹438.75 crores** fr…
- 🔴 Insider Trading2026-09-08On September 8, 2026, promoter group Shree Saibaba Exim Private Limited disclosed disposal of 5,245,000 equity shares of Mercury EV-Tech Ltd, represen…
- 🟡 Board Meeting2026-09-06The company revised the record and e-voting dates for its 40th AGM to September 30, 2026, with the record date set for September 4 and e-voting eligib…
- 🟡 Board Meeting2026-09-06The board revised the 40th AGM record date to September 4, 2026 and book closure to September 30, 2026, moving the meeting to September 30 via video c…
- 🟡 Board Meeting2026-08-31The company announced cut-off dates for e-voting ahead of its 40th Annual General Meeting scheduled for September 28, 2026, via video conference. Reco…
- 🟡 Board Meeting2026-08-31The company announced cut-off dates for e-voting ahead of its 40th Annual General Meeting scheduled for September 28, 2026, via video conference. Reco…
- 🟡 Board Meeting2026-08-31The board approved the annual report, scheduled the 40th AGM for September 28, 2026 with a September 19-26 book closure, appointed a new scrutinizer, …
🧠 Analyst's Read
Mercury EV-Tech remains in a pre-commercialization phase with no clear evidence of scalable operations or profitability. Investors should monitor for new order announcements, customer diversification, or margin improvement signals in upcoming filings. Until then, the company's financial and operational trajectory lacks the inflection points typical of investable turnarounds or growth stories.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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