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. 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 company’s total income stood at ₹1,601.54 lakh for the quarter, 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 and other expenses. However, the cost reduction was insufficient to offset the decline in top-line growth.

Profit before tax was ₹39.19 lakh, a substantial drop from ₹154.73 lakh in the previous year’s quarter. Tax expenses for the period included current tax of ₹13.00 lakh and deferred tax credit of ₹3.59 lakh. The earnings per share (basic and diluted) stood at ₹2.48, compared to ₹8.06 in Q1FY25. For the full financial year FY26, the company had reported a net profit of ₹483.40 lakh on revenues of ₹7,593.67 lakh.

Financial Performance Highlights

What the Numbers Show

The divergence between revenue decline and expense management reveals margin pressure. 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, and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 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.

Mercury Laboratories Limited has appointed Mr. Binaya Kumar Panigrahi as the Plant Head for its Jarod Unit, effective June 11, 2026. The appointment aims to strengthen the company's manufacturing operations with the addition of a senior management professional possessing extensive industry experience.

The appointment was made pursuant to Regulation 30 read with Para A(7) of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was submitted to the stock exchanges to comply with the regulatory framework governing senior management personnel changes.

Profile of the Appointee

Mr. Binaya Kumar Panigrahi, aged about 52 years, holds a Bachelor degree in Pharmacy (B.Pharm). He possesses a rich experience of more than 24 years specifically in the domain of Tablet Manufacturing. Prior to this role, he was associated with Coral Laboratories Limited and Biocon Biological India Limited, Bangalore.

Appointment Details

The following table outlines the key details regarding the new appointment:

The company has informed the BSE Limited regarding this change in its senior management personnel. The intimation was signed by Rajendra Shah, Managing Director of Mercury Laboratories Limited.