Mercury EV-Tech Limited disclosed that its promoter group entity, Shree Saibaba Exim Private Limited, sold 52,45,000 equity shares in the open market on September 7 and 8, 2026.

The disposal was made under Regulation 7(2)(a) of the SEBI (Prohibition of Insider Trading) Regulations, 2015, and Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Shareholding Changes

Shree Saibaba Exim Private Limited held 4,29,92,485 shares, representing 22.630% of the company's total voting capital, prior to the transaction. Following the sale, its holding reduced to 3,77,47,485 shares, or 19.869%.

The transaction took place on the BSE and NSE exchanges. The company's total equity share capital remains unchanged at 18,99,73,058 shares with a face value of Re. 1/- each.

Regulatory Compliance

The disclosure was submitted by Artiben Jayeshbhai Thakkar, Director of Shree Saibaba Exim Private Limited (DIN: 02480296), on September 8, 2026. The filing confirms no derivatives were traded in connection with this disposal.

Mercury EV-Tech reported a 43% decline in consolidated net profit to ₹438.75 lakh for FY26, despite a 14% rise in revenue to ₹1,020.73 crore. The standalone segment saw a sharper contraction, with net profit falling 56% to ₹283.12 lakh as operational costs outpaced top-line growth.

The company’s consolidated revenue from operations increased from ₹896.36 crore in FY25 to ₹1,020.73 crore in FY26. However, total expenses rose by 22% to ₹1,013.45 crore, driven primarily by a 94% jump in employee benefit expenses and a 94% increase in depreciation charges. This cost inflation compressed the consolidated net profit margin to 4.3%, down from 8.6% in the previous year.

Financial Performance

On a standalone basis, revenue from operations contracted 33% to ₹452.72 crore from ₹676.43 crore. Standalone total expenses fell 24% to ₹460.34 crore, but the reduction was insufficient to offset the revenue drop, leading to a 49% fall in profit before tax to ₹42.70 crore.

What the Numbers Show

A significant divergence exists between the group’s revenue growth and its cash generation capabilities. While consolidated revenue grew by 14%, inventories surged by 64% to ₹714.98 crore, indicating aggressive stockpiling or slower movement of finished goods. Simultaneously, trade receivables rose by 35% to ₹520.53 crore. This dual expansion in working capital components suggests that the top-line growth is currently being funded by increased balance sheet leverage rather than immediate cash conversion.

Corporate Actions and Governance

The Board recommended no dividend for FY26, opting to plough back profits for future growth. The company also announced the appointment of M/s Tejas K. Soni as statutory auditors for three consecutive financial years, filling a casual vacancy left by M/s M Sahu & Co. Additionally, shareholders approved material related party transactions with subsidiaries including DC2 Mercury Cars Private Limited and Powermetz Energy Private Limited, with an aggregate limit of ₹200 crore per annum for FY27.

The Secretarial Audit Report highlighted a qualification regarding the non-filing of Form MGT-14 for special resolutions passed via postal ballot in June 2025. Management stated this was an inadvertent omission and confirmed steps for regularization.