Mercury EV-Tech Q1 FY27 Results (NSE: MERCURYEV)

13 Aug 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The quarter shows a parent-led revenue inflection, with consolidated revenue up 47.9% YoY to ₹3,338.41 lakh and EBITDA margin improving 140bps to 10.8%, but the thesis remains fragile because gross margin compressed 1,010bps, finance costs rose 444.7%, and PAT grew only 1.2%; this is not yet a clean earnings-quality recovery.

P&L walk

Consolidated revenue increased to ₹3,338.41 lakh, +47.9% YoY and +65.2% QoQ, while gross margin compressed to 24.4% from 34.5% as direct material and trading costs rose; EBITDA grew +38.2% to ₹361.64 lakh and margin reached 10.8%, but PAT rose only +1.2% to ₹155.83 lakh because finance costs increased +444.7% and minority-interest allocation turned negative.

Segments

No segment table is disclosed, but the standalone parent contributed ₹144.11 lakh of the ₹155.83 lakh consolidated PAT; subsidiaries added revenue while consolidated profit was reduced by ₹8.88 lakh of minority-interest allocation.

Key positives

• Consolidated revenue increased 47.9% YoY to ₹3,338.41 lakh and 65.2% QoQ, reversing the prior-quarter revenue decline.
• Standalone revenue grew 321.0% YoY to ₹2,066.83 lakh and standalone PAT grew 300.0% to ₹144.11 lakh, indicating strong parent-level momentum.
• Employee and other operating expenses declined 8.4% YoY on consolidation while revenue grew 47.9%, helping EBITDA margin expand 140bps to 10.8%.

Key concerns

• Gross margin compressed 1,010bps YoY to 24.4%, with total direct costs increasing faster than revenue; the filing does not identify the cause.
• Finance costs increased 444.7% YoY to ₹72.52 lakh, limiting EBITDA-to-PAT conversion.
• Consolidated PAT grew only 1.2% YoY to ₹155.83 lakh despite EBITDA growth of 38.2%, indicating weak bottom-line conversion.

View original filing

Research and educational content only. Not investment advice.