Mercury EV-Tech Q2 FY27 Results (NSE: MERCURYEV)
Signal: Margin expansion
The read
The key inflection is a return to sequential revenue contraction, with consolidated revenue down 12.6% QoQ to ₹3027.88 lakh after ₹3464.23 lakh in Q1FY27; gross margin also compressed 1231bps YoY to 36.68%, while the apparent EBITDA-margin improvement was diluted by depreciation rising 536.8% YoY to ₹333.04 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹30.28 Cr | -10.3% | -12.6% |
| Net profit | ₹1.56 Cr | -5.4% | |
| EPS | ₹0.08 | -5.7% | |
| EBIT margin | 19.74% |
P&L walk
Consolidated revenue declined to ₹3027.88 lakh, -10.3% YoY and -12.6% QoQ, gross margin compressed to 36.68% from 48.99% a year earlier, and parent PAT fell 5.4% to ₹155.75 lakh despite lower employee and finance costs.
Segments
Standalone revenue rose 17.7% YoY to ₹2433.08 lakh and standalone PAT rose 15.0% to ₹165.71 lakh, but subsidiaries generated only ₹3.63 lakh of half-year PBT and group parent PAT fell 5.4% YoY to ₹155.75 lakh.
Key positives
- Standalone revenue grew 17.7% YoY to ₹2433.08 lakh and standalone PAT grew 15.0% to ₹165.71 lakh.
- Consolidated employee benefits expense fell 66.5% YoY to ₹257.02 lakh, supporting the calculated EBITDA margin despite a 10.3% revenue decline.
- Consolidated CWIP increased to ₹3603.78 lakh from ₹3163.87 lakh, indicating continued investment in the asset base.
Key concerns
- Consolidated gross margin compressed 1231bps YoY to 36.68% as material, stock-in-trade and inventory-change costs rose to 63.32% of revenue from 51.01%; the filing does not disclose the cause.
- Revenue declined 10.3% YoY to ₹3027.88 lakh and 12.6% QoQ, reversing the recent Q1FY27 growth of 47.9% YoY.
- Operating cash flow was negative ₹1375.65 lakh in H1FY27 despite ₹423.51 lakh of PBT, with inventory rising to ₹5205.26 lakh.
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