Mercury EV-Tech: revenue up 48% YoY but profit growth lags as finance costs surge, NPM slips
PAT +29.3% YoY · revenue +47.9% · margins compressing
₹33.38 Cr
+47.9% YoY
₹1.65 Cr
+29.3% YoY
4.88%
-2.2pp YoY
₹0.087
Mercury EV-Tech's consolidated revenue rose 47.9% YoY to ₹33.38 Cr (₹22.57 Cr in Q1 FY26), but profitability grew more slowly and, on a like-for-like basis, actually contracted. Consolidated PAT attributable to owners was ₹1.65 Cr, up 29.3% YoY (₹1.27 Cr) — yet the group's total net profit for the period (before splitting out minority interest) was ₹1.56 Cr, down 4.15% YoY from ₹1.63 Cr. The gap between the two PAT measures is explained by a subsidiary swinging from a profit (minority interest +₹0.35 Cr in the year-ago quarter) to a loss (minority interest -₹0.09 Cr this quarter), which mechanically shifts a larger share of a smaller consolidated profit pool to the parent. Net profit margin (on total income) compressed to 4.62% from 7.05% YoY, even though operating profitability held up — the EBIT-style operating margin was roughly flat to slightly better at 9.77% versus 9.38% a year ago. The squeeze sits below the operating line: finance costs jumped to ₹0.73 Cr from ₹0.13 Cr YoY (+445%), consistent with debt or working-capital funding to support the revenue ramp, and total expenses rose to 94.2% of total income from 90.5% a year ago.
Q1 FY-2027 vs prior quarters
Standalone (parent-only) numbers tell a similar story at smaller scale: revenue ₹20.67 Cr and PAT ₹1.44 Cr, both un-audited and subject to limited review only. On management's own framing, no press release was extracted with this filing, so there is no company commentary to reconcile against the numbers. There is no prior guidance on record from management and no analyst consensus estimates were found for this Q1 FY27 print — Mercury EV-Tech is a micro-cap (paid-up capital of just ~19 Cr shares of ₹1 face value) with no visible street coverage, so vsStreet is unknown rather than a genuine miss or beat. The quarter's context includes real operating developments that plausibly support the revenue growth even as margins compressed: the company listed on the NSE on June 2, 2026, opened a new signature showroom in Vadodara, and received GEDA approval for e-rickshaw sales in Gujarat on July 15, 2026 — all of which expand distribution and product scope ahead of scale benefits showing up in margins. QoQ comparisons (revenue +65.2%, owners' PAT +451%) are off a very small March-quarter base and are not meaningful signals of quarterly momentum for this business.
The stock went into the print at ₹34.39, down 4.1% over the past month of trading.
What the summary numbers don't show
4.53 Cr convertible warrants (issue price ₹75) forfeited this quarter — ₹85.07 Cr transferred to Capital Reserve with explicitly no P&L impact
W1
Finance cost run-rate — ₹0.73 Cr this quarter vs ₹0.13 Cr YoY (+445%); whether it stabilizes or keeps climbing with scale
W2
Subsidiary/minority-interest performance — NCI was -₹0.09 Cr this quarter vs +₹0.35 Cr YoY; watch for a return to profit at the loss-making unit
W3
NPM recovery — compressed to 4.62% from 7.05% YoY; check if Q2 shows margin improvement as the Gujarat e-rickshaw approval and new showroom scale up
Consolidated PAT (₹1.6471 Cr) is profit attributable to owners of parent; group 'net profit for the period' (pre-NCI) was ₹1.5583 Cr, down 4.15% YoY, because a subsidiary swung to a loss (NCI -₹0.0888 Cr vs +₹0.3515 Cr YoY), mechanically boosting the owners' share. Both statements are un-audited/limited-review only; consolidated review flags 4 unaudited subsidiaries (revenue ₹13.06 Cr, PBT ₹0.25 Cr) not reviewed by their own auditors. Warrant forfeiture (₹85.07 Cr to Capital Reserve) explicitly has no P&L impact this quarter.