Mercury Laboratories has declared a final dividend of ₹3.5 per equity share for the financial year ended March 31, 2026 (FY26). The Board of Directors recommended this payout during its meeting held on May 29, 2026, pending approval from shareholders at the ensuing Annual General Meeting (AGM).

The company has designated Monday, September 21, 2026 as the record date to determine eligibility for the dividend. In line with regulatory mandates requiring electronic dividend payments, shareholders must ensure their bank account details, including IFSC codes, are updated with their Depository Participants or the Registrar and Share Transfer Agent.

Tax Deduction at Source (TDS) Implications

Under the prevailing provisions of the Income Tax Act, 2025, Mercury Laboratories will deduct tax at source on dividend payouts. The applicable TDS rates vary based on the shareholder's residential status and submitted documentation:

Resident individual shareholders can avoid TDS if their total dividend income from the company does not exceed ₹10,000 in the tax year 2026-2027. Those eligible for lower or nil rates must submit a self-attested certificate under Section 395 of the Act. Failure to link Aadhaar with PAN may result in TDS at a higher rate of 20%.

Compliance and Documentation

Non-resident shareholders seeking benefits under Double Taxation Avoidance Agreements (DTAA) must submit specific documents by the record date. These include a self-attested PAN, Tax Residency Certificate (TRC), and e-filed Form 41. The company reserves the right to apply standard TDS rates if documentation is incomplete or unsatisfactory.

Shareholders holding shares in physical mode must submit service requests along with cancelled cheques and PAN copies to the Registrar. Demat holders must update details directly with their Depository Participants. No claims against the company will be entertained for taxes deducted due to missing or inaccurate information.

Mercury Laboratories Limited reported a sharp decline in profitability for the quarter ended June 30, 2026, with net profit after tax falling 69% year-on-year to ₹29.78 lakh. Revenue from operations contracted 12% to ₹1,596.32 lakh compared to ₹1,813.54 lakh in the same period last year, signaling margin pressure as cost reductions failed to offset lower top-line growth.

The results were approved by the Board of Directors at a meeting held on July 25, 2026, in Vadodara, and reviewed by the Audit Committee. The unaudited financial statements were filed with the stock exchanges pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Newspaper advertisements containing the quick response (QR) code for accessing full results were published in Active Times (English) and Mumbai Lakshdeep (Marathi), as notified under Regulation 47 of the SEBI LODR Regulations, 2015.

Total income for the quarter stood at ₹1,601.54 lakh, down from ₹1,831.64 lakh in Q1FY25. Other income decreased significantly to ₹5.22 lakh from ₹18.10 lakh in the corresponding period last year. Total expenses were recorded at ₹1,562.35 lakh, lower than the ₹1,676.91 lakh incurred in Q1FY25, primarily due to reduced material costs. However, this reduction was insufficient to counteract the revenue decline.

Financial Performance Highlights

What the Numbers Show

The divergence between revenue decline and expense management reveals significant margin compression. While total expenses decreased by 6.8% year-on-year, revenue fell by a sharper 12%, leading to a compressed operating buffer. Cost of materials consumed dropped slightly to ₹579.14 lakh from ₹593.83 lakh, but this was not enough to counteract the lower sales volume. Employee benefits expense remained relatively stable at ₹423.64 lakh, indicating fixed cost rigidity despite lower operational throughput. The significant drop in other income further exacerbated the bottom-line impact, suggesting that non-operating gains cannot compensate for core business slowdowns.

The financial results were prepared in accordance with Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013. Naresh & Co., the statutory auditors, conducted a limited review in accordance with Standard on Review Engagement (SRE) 2410. CA Abhijeet Dandekar, Partner at Naresh & Co., signed the review report, stating that nothing came to their attention to suggest the statement contained material misstatements or failed to disclose required information.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE947G01011/5d058be7-eac2-4168-a5bb-7fda89c2309d.pdf