Mercury EV-Tech Ltd: ₹108 Cr Sales, 105 P/E – EV Hype or Battery-Operated Bubble?
1. At a Glance
Mercury EV-Tech is the classic smallcap EV dream stock – name change (from Mercury Metals to Mercury EV-Tech), battery approvals, flashy press releases, and a stock P/E of 105. Sales FY25 = ₹108 Cr, PAT = ₹9.4 Cr. Looks like Tesla’s long-lost chacha ji, but scratch the surface and you’ll see—other income, preferential allotments, and 157-day debtors. In short: great story, weak balance sheet, lofty valuation.
2. Introduction
Started in 1986 as a metals player, Mercury rebranded itself in 2023 to ride the EV wave. Now it manufactures EV scooters, buses, vintage electric cars (for your Maharaja cosplay), and golf carts for clubs and resorts. With subsidiaries making batteries, tie-ups for special-purpose EVs, and even acquiring a tractor company, it’s trying to be everywhere in EV.
The problem? For now, Mercury is more about PowerPoint decks than powertrains. Revenue growth is impressive (₹1 Cr FY22 → ₹108 Cr FY25), but operating cash flows are deeply negative (–₹44 Cr in FY25). Borrowings peaked at ₹56 Cr before being cut, but they raised huge money via preferential allotments (~₹447 Cr). Classic smallcap EV strategy: sell the dream, dilute equity, keep expanding.
Question: Is this India’s next Olectra Greentech… or next flashy mirage like “EV Metals Ltd” from Dalal Street history?
3. Business Model (WTF Do They Even Do?)
Mercury’s business lines are:
EV Manufacturing: Scooters, e-rickshaws, golf carts, vintage EVs, buses. Mostly low-speed and niche.
Battery Tech: Through subsidiary Powermetz, received AIS-156 certification for high-speed 2W battery packs (big credibility booster).
Subsidiaries: Acquired EV Nest (merger) and Traclaxx Tractors (65% stake).
Custom EVs: Hospitality/industrial golf carts, resort buggies—basically “EV jugaad” for every market.
Revenue Split FY23: 97% product sales, 3% other. Now, with battery orders and LoAs, the plan is to scale. But execution risk is high—low margins, high receivables, and too much dependence on equity raises.
