Quarterly Financial Performance: A Shift to Negative Territory
In the quarter ended December 2025, Mercury EV-Tech’s financial trend score plunged to -6 from a positive 13 recorded three months earlier, reflecting a significant reversal in operational momentum. The company’s net sales for the quarter stood at ₹25.29 crores, representing a decline of 17.7% compared to the average of the preceding four quarters. This contraction in quarterly revenue contrasts sharply with the company’s nine-month net sales figure of ₹81.87 crores, which had grown at a healthy rate of 38.88% year-on-year.
While the top-line growth over the longer period indicates underlying demand strength, the quarterly dip suggests emerging challenges in sustaining sales momentum. This could be attributed to market headwinds, competitive pressures, or supply chain disruptions impacting the latest quarter’s performance.
Profitability Under Pressure: Margin Contraction Evident
More concerning is the company’s profitability trend. The latest six-month period saw the profit after tax (PAT) shrink by 55.61%, amounting to just ₹2.61 crores. This sharp decline in earnings highlights margin pressures that have intensified recently. Earnings per share (EPS) for the quarter hit a low of ₹0.05, underscoring the diminished profitability on a per-share basis.
Such contraction in margins and earnings is a red flag for investors, especially given the company’s prior trajectory of improvement. The deteriorating profitability metrics suggest that cost pressures or pricing challenges may be eroding the benefits of revenue growth.
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Stock Price Movement and Market Capitalisation
Mercury EV-Tech’s share price closed at ₹37.42 on 13 Feb 2026, down 4.52% from the previous close of ₹39.19. The stock traded within a range of ₹36.80 to ₹38.11 during the day. Over the past 52 weeks, the stock has seen a high of ₹79.99 and a low of ₹29.95, indicating significant volatility. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the automobile sector.
Long-Term Returns: Mixed Picture Against Sensex Benchmark
Examining Mercury EV-Tech’s returns relative to the Sensex index reveals a mixed performance. Over the past week, the stock declined by 4.08%, underperforming the Sensex’s modest 0.90% loss. However, over the one-month horizon, the stock surged 15%, outperforming the Sensex’s 0.96% decline. Year-to-date returns show a slight gain of 1.11%, compared to the Sensex’s 2.81% loss.
On a longer-term basis, the stock has struggled significantly over the past year, with a steep decline of 48.54%, while the Sensex gained 8.78%. Conversely, the three-year return for Mercury EV-Tech is an impressive 96.95%, well ahead of the Sensex’s 37.06% gain, and the ten-year return stands at a remarkable 933.7%, dwarfing the Sensex’s 260.33% growth. These figures illustrate the stock’s high volatility and cyclical nature, with periods of strong outperformance offset by recent setbacks.
Mojo Score and Rating Update
MarketsMOJO has downgraded Mercury EV-Tech’s mojo grade from Sell to Strong Sell as of 20 May 2025, reflecting the deteriorating financial health and negative outlook. The current mojo score stands at 27.0, signalling caution for investors. This downgrade aligns with the recent negative financial trend and weakening profitability metrics.
Industry Context and Sectoral Challenges
Operating within the highly competitive automobile sector, Mercury EV-Tech faces headwinds from evolving market dynamics, including the transition to electric vehicles, fluctuating raw material costs, and regulatory pressures. While the company’s nine-month sales growth of 38.88% is commendable, sustaining this momentum amid margin pressures remains a challenge. The sector’s overall growth prospects are positive, but individual companies must navigate cost efficiencies and innovation to maintain profitability.
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Investor Takeaway and Outlook
Mercury EV-Tech’s recent quarterly results highlight a critical inflection point. While the company has demonstrated strong sales growth over the nine-month period, the latest quarter’s revenue decline and sharp contraction in profitability raise concerns about near-term operational challenges. The downgrade to a Strong Sell rating by MarketsMOJO reflects these risks and suggests investors should exercise caution.
For long-term investors, the stock’s historical outperformance over three and ten years remains attractive, but the current negative financial trend and margin pressures warrant close monitoring. Potential investors should weigh the company’s growth prospects against the evident volatility and recent earnings deterioration.
In summary, Mercury EV-Tech Ltd is navigating a difficult phase marked by declining quarterly sales and shrinking profits, signalling a need for strategic recalibration to restore growth and margin expansion.
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