Mercury EV-Tech Q1 FY26 – 454% Sales Growth, 101x P/E, and a Battery of Borrowings: EV Darling or Penny-Stock Circus?
1. At a Glance
Mercury EV-Tech (formerly Mercury Metals) has rebranded itself into an EV play, grown sales from ₹1 Cr (FY22) to ₹108 Cr (TTM), and claims orders worth ₹110 Cr in batteries. Stock trades at P/E 101, P/B 3.4, and still made just ₹9 Cr PAT. With promoter holding at 59%, borrowings shooting from ₹23 Cr to ₹54 Cr, and a shiny AIS-156 Phase II battery certification, this looks like a Bollywood remake of “Metals to Tesla”.
2. Introduction
Some companies quietly evolve. Others rebrand, add “Tech” to their name, and start selling dreams bigger than their balance sheet. Mercury EV-Tech belongs in the second category. Originally a metals business, they switched gears in 2023, jumped into the EV bandwagon, and suddenly started pitching electric scooters, golf carts, and even vintage EVs. Yes, “vintage electric cars”—basically Ambassadors with charging sockets.
The stock has been a roller coaster: ₹139 high to ₹50 today, with a -52% 1-year return. Yet, quarterly numbers show 483% sales growth. On paper, this is like Virat Kohli’s 2016 batting form. In reality, it smells more like penny-stock enthusiasm—lots of announcements, little free cash.
The company keeps announcing orders, approvals, and subsidiaries faster than Ola Electric announces delivery dates. But can ₹953 Cr market cap be justified on ₹9 Cr profit and cash burn every year? That’s the detective story we’re solving today.
3. Business Model – WTF Do They Even Do?
METL’s business model is like an Indian buffet—too many dishes, questionable digestion.
Batteries: Through PowerMetz Energy (80% owned), they make certified high-speed 2W battery packs. Reliance Jio even certified their BMS system.
Custom EVs: For resorts, hospitality, golf courses, clubs. Basically, battery-powered buggies in fancy hotels.
Subsidiaries & M&A: Acquired 65% in Traclaxx Tractors, merged EV Nest, incorporated Global Mercury Container Pvt Ltd (unclear what containers have to do with EVs).
Revenue breakup (FY23): 97% from product sales, 3% other operating income.
So, the company is part manufacturer, part trader, part acquirer, part storyteller. Think of it as an EV startup disguised as a listed microcap.
Question: If Ola, Ather, and Tata are struggling to profit in EVs, how do you feel about a ₹100 Cr company promising everything from buses to super-bikes?
4. Financials Overview
Source table
Metric
Latest Qtr (Q1FY26)
YoY Qtr (Q1FY25)
Prev Qtr (Q4FY25)
YoY %
QoQ %
Revenue
₹22.6 Cr
₹3.9 Cr
₹30.7 Cr
483%
-26%
EBITDA
₹2.1 Cr
₹0.9 Cr
-₹0.9 Cr
134%
Turnaround
PAT
₹1.98 Cr
₹0.49 Cr
₹1.55 Cr
304%
27.7%
EPS (₹)
0.10
0.03
0.08
233%
25%
Commentary: Annualized EPS = ~₹0.40. Current CMP ₹50 = P/E ~125x (not the 101 reported). Profitability exists, but wafer thin. A single cancelled order can wipe out the “turnaround story.”
5. Valuation Discussion – Fair Value Range
P/E Method: EPS (TTM) ₹0.50. Even at industry multiple (40x), fair price = ₹20
