Mercury Trade Links Limited reported a standalone net loss of ₹63.64 crore for the quarter ended June 30, 2026, marking a sharp reversal from the ₹5.32 crore profit posted in the preceding quarter. The deterioration in profitability was primarily driven by a disclosed default on an Inter Corporate Deposit (ICD) amounting to ₹11.16 crore, alongside a surge in other office and administrative expenses. The Board of Directors approved the unaudited financial results on August 01, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditors, Sarang Shivajirao Chavan and Associates, issued a limited review report highlighting the ICD default. In their report, the auditors noted that the company has defaulted in the repayment of the Inter Corporate Deposit and has received a loan recovery notice for ₹11.16 crore plus interest. This disclosure represents a material liquidity risk for the company, as it indicates potential legal or financial enforcement actions regarding the debt obligation.

Financial Performance Overview

Revenue from operations stood at ₹5.33 crore in Q1FY26, a substantial decline from ₹96.64 crore in Q4FY25. Despite the lower revenue base, total expenses surged to ₹68.97 crore, compared to ₹91.31 crore in the previous quarter. The spike in expenses was largely attributable to changes in inventories and a significant increase in administrative overheads.

The basic earnings per share (EPS) for the quarter were negative ₹45.75, contrasting with positive ₹3.91 in the previous quarter. For the full year ended March 31, 2026, the company had reported a minimal net profit of ₹1.21 lakh, indicating that the current quarter’s losses have significantly erased prior-year gains.

What the Numbers Show

The divergence between revenue contraction and expense inflation points to severe operational inefficiencies or one-off accounting adjustments. While revenue dropped by over 94% quarter-on-quarter, the reduction in expenses was proportionately smaller, leading to a widened loss margin. The specific mention of the ICD default by the statutory auditors suggests that the financial strain is not merely operational but also structural, involving debt servicing failures. Investors should monitor subsequent quarters for signs of debt restructuring or additional liquidity injections to address the ₹11.16 crore liability.

Mercury Trade Links Limited has appointed M/s. Sarang Shivajirao Chavan and Associates as its statutory auditor effective July 07, 2026. The appointment was approved by the Board of Directors based on the recommendation of the audit committee. The new auditor will hold office until the conclusion of the ensuing general meeting of the company.

The decision follows the resignation of the previous statutory auditor, M/s. Bhatt Shah Mekhia & Co., Chartered Accountants, effective July 07, 2026. The outgoing auditor cited pre-occupation in other professional work as the reason for resignation. The Board placed on record its appreciation for the guidance and contribution made by M/s. Bhatt Shah Mekhia & Co. during their tenure.

M/s. Sarang Shivajirao Chavan and Associates, a firm registered with the Firm's Registration No. 159649W, is based in Ahmedabad. The firm provides services including statutory audit, internal audit, tax audit, GST compliances, and advisory services.

The disclosures regarding the appointment and resignation were made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Auditor Details