Mercury Laboratories has scheduled its 45th Annual General Meeting (AGM) for Monday, September 28, 2026. The meeting will be held through Video Conference (VC) or Other Audio-Visual Means (OAVM) in compliance with Ministry of Corporate Affairs and SEBI circulars.

The primary agenda item is the approval of the final dividend of ₹3.5 per equity share for FY26, as recommended by the Board of Directors in its May 29, 2026 meeting. The company has fixed Monday, September 21, 2026, as the record date to determine eligibility for the dividend payout.

Meeting Logistics and E-Voting

Shareholders can attend and participate in the AGM via the VC/OAVM facility. Instructions for joining the meeting will be provided in the official Notice of the AGM. Members attending through VC/OAVM will be counted for quorum purposes under Section 103 of the Companies Act, 2013.

The company is providing a remote e-voting facility to all members to cast votes on resolutions set out in the Notice. Detailed procedures for remote e-voting and e-voting during the AGM are available in the Notice of the AGM. Electronic copies of the Notice and the Integrated Annual Report for FY25-26 have been sent to shareholders with registered email addresses. Those without registered emails will receive a letter with a web link and QR code.

Dividend Payment and Compliance

If approved at the AGM, the dividend will be paid to eligible shareholders on or after September 28, 2026. In line with regulatory mandates requiring electronic dividend payments, physical modes such as cheques or demand drafts are no longer permitted.

Shareholders must ensure their bank account details, including IFSC codes and KYC information, are updated with their Depository Participants (for demat holdings) or the Registrar and Share Transfer Agent (for physical holdings). Failure to update details may delay payment.

Tax Deduction at Source (TDS) Implications

Under the Income Tax Act, 2025, Mercury Laboratories will deduct tax at source on dividend payouts. Shareholders seeking benefits under Double Taxation Avoidance Agreements (DTAA) or claiming lower/nil TDS must submit relevant documents (Form 121, Form 41, Tax Residency Certificate) by the record date.

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. Non-resident shareholders must submit self-attested PAN, TRC, and e-filed Form 41 by the record date to avail DTAA benefits.

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