Mercantile Ventures Limited has fixed July 24, 2026 as the record date to determine shareholders eligible to receive equity shares following its amalgamation with India Radiators Limited. The National Company Law Tribunal (NCLT), Chennai, sanctioned the scheme of amalgamation on July 8, 2026. The merger aims to reduce administrative costs, eliminate duplication of work, and achieve synergies through a centralized structure to enhance overall business efficiency.

Under the sanctioned scheme, shareholders of India Radiators will receive 10 fully paid-up equity shares of ₹10 each in Mercantile Ventures for every 36 fully paid-up equity shares of ₹10 each held in the transferor company. The appointed date for the amalgamation is January 1, 2025. The scheme will become effective from the date the certified copy of the sanction order is filed with the Registrar of Companies, Chennai.

The Board of Directors of Mercantile Ventures approved the receipt of the certified copy of the NCLT order via a circular resolution passed on July 13, 2026. The amalgamation will be accounted for using the pooling of interest method as per Ind AS 103. All assets, liabilities, and undertakings of India Radiators will transfer to Mercantile Ventures without further act or deed upon the scheme becoming effective.

Key Scheme Details

The tribunal's approval followed necessary regulatory compliances, including meetings convened for equity shareholders and unsecured creditors of the transferee company. Meetings for preference shareholders and unsecured creditors of the transferor company were dispensed with. The effective date of the scheme will be communicated to the stock exchanges for public dissemination upon completion of the filing with the Registrar of Companies.

Mercantile Ventures Limited reported a consolidated net profit of ₹690.06 lakh for the financial year ended March 31, 2026, a decrease from ₹1,731.62 lakh in the previous year. The board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, during a meeting held on May 27, 2026. The statutory auditor, M/s. Venkatesh & Co., issued an unmodified opinion on the standalone financial statements, while the consolidated audit included a qualification regarding investments in a subsidiary.

The standalone net profit for FY26 was ₹126.62 lakh, compared to ₹689.16 lakh in FY25. Total income from operations for the year stood at ₹4,293.24 lakh, up from ₹3,656.07 lakh in the prior year. For the quarter ended March 31, 2026, the standalone net profit was ₹140.07 lakh. Earnings per share (EPS) for the year was ₹0.12 on a standalone basis and ₹0.62 on a consolidated basis.

Consolidated Financial Performance

The consolidated results reflect the performance of the company and its subsidiaries, including I3 Security Private Limited, India Radiators Limited, and Walery Security Management Limited. Total consolidated income for FY26 was ₹9,634.77 lakh, compared to ₹8,505.52 lakh in FY25. Profit for the period before exceptional items and tax was ₹249.63 lakh, significantly lower than the ₹1,309.21 lakh reported in the previous year.

Audit Qualifications

The consolidated audit report included a qualification related to Walery Security Management Limited, a subsidiary. The subsidiary holds redeemable cumulative preference shares worth ₹22 crore in another company, for which dividends have been unpaid since FY 2019-20. The auditors noted an inability to assess the arm's length nature of the acquisition or the carrying value of these investments due to the absence of valuation reports. Management stated that the carrying value is appropriate and in compliance with Ind AS 109 and Ind AS 113.

Segment Performance

Segment-wise results showed that Manpower Services contributed the largest share of revenue at ₹3,514.07 lakh, followed by Security Services at ₹5,034.13 lakh and Rent and Maintenance at ₹785.49 lakh for FY26. The company's total assets as per the consolidated balance sheet stood at ₹30,601.27 lakh as of March 31, 2026, down from ₹39,058.90 lakh in the previous year.