Mercury Laboratories has announced a 13-month delay in the commissioning of its new Small Volume Parenteral (SVPs) manufacturing plant, pushing the timeline from November 2025 to December 2026. The company cited revisions in Schedule M guidelines by the Ministry of Health and Family Welfare as the primary reason for the postponement.

Project Details and Delay Factors

The new facility, located at Jarod, is designed with an annual manufacturing capacity of 75 million units and involves an estimated investment of INR 30.00 crores. According to the company's disclosure, the delay is attributed to additional compliance and infrastructural requirements mandated by the revised Schedule M guidelines for pharmaceutical manufacturing facilities.

Impact on Operations

Mercury Laboratories has stated that the delay is not expected to have any material adverse impact on the overall business operations of the company. The management has assured that necessary steps are being taken to expedite the completion of the project.

Financial Performance

While the company faces a setback in its expansion plans, its recent financial results show a mixed picture:

The company has shown significant year-over-year growth in both quarterly and half-yearly results, with a notable increase in net profit after tax.

Management's Statement

Rajendra Shah, Managing Director of Mercury Laboratories, signed off on the regulatory filing, emphasizing the company's commitment to complying with the new guidelines while minimizing the impact of the delay on their operations.

As Mercury Laboratories navigates this setback in its expansion plans, stakeholders will be closely watching how the company manages to maintain its growth trajectory and adapt to the evolving regulatory landscape in the pharmaceutical industry.

Mercury Laboratories Limited , a prominent player in the pharmaceutical sector, has announced its financial results for the second quarter and half-year ended September 30, 2025, showcasing robust growth in both revenue and profitability.

Key Financial Highlights

Mercury Laboratories has demonstrated a strong financial performance in the second quarter of fiscal year 2026. The company's revenue from operations stood at ₹1,900.86 lakhs, marking a 4.8% increase from the previous quarter's ₹1,813.54 lakhs. This growth in revenue indicates a positive trend in the company's core business activities.

Profitability Boost

The most notable aspect of Mercury Laboratories' Q2 results is the significant jump in profitability. The company reported a net profit after tax of ₹164.33 lakhs, representing a substantial 69.8% increase from the previous quarter's ₹96.76 lakhs. This impressive growth in net profit underscores the company's improved operational efficiency and cost management strategies.

Half-Year Performance

For the half-year ended September 30, 2025, Mercury Laboratories recorded a total revenue from operations of ₹3,714.40 lakhs. The cumulative net profit for this period reached ₹261.09 lakhs, reflecting the company's consistent performance over the first two quarters of FY2026.

Earnings Per Share

The basic earnings per share (EPS) for Q2 FY2026 stood at ₹13.69, a significant increase from ₹8.06 in the previous quarter. This 69.9% growth in EPS aligns closely with the increase in net profit, indicating a direct benefit to the shareholders from the company's improved performance.

Management Commentary

The Board of Directors of Mercury Laboratories Limited approved these financial results at their meeting held on November 11, 2025. While specific management comments were not provided in the available data, the strong financial performance speaks to the effectiveness of the company's business strategies and market positioning.

Future Outlook

In a separate announcement, Mercury Laboratories provided an update on its expansion plans. The company has deferred the commissioning of its new Small Volume Parenteral (SVPs) plant at Jarod by 13 months. Originally scheduled for November 2025, the plant is now expected to be operational by December 2026. The delay is attributed to revisions in Schedule M guidelines issued by the Ministry of Health and Family Welfare, which mandated additional compliances and infrastructural requirements for pharmaceutical manufacturing facilities.

Despite this delay, the company has stated that there is no material adverse impact on its overall business operations. Mercury Laboratories is taking necessary steps to expedite the completion of the project, which, when operational, will have a manufacturing capacity of 75 million units annually.

The pharmaceutical sector continues to be a critical industry, and Mercury Laboratories' strong financial performance, coupled with its expansion plans, positions it well for future growth. Investors and market watchers will likely keep a close eye on the company's performance in the coming quarters, especially as it navigates the regulatory landscape and works towards completing its new manufacturing facility.