Mercury EV-Tech Ltd Q3 FY26: ₹25 Cr Sales, 94x P/E, 5% ROCE — EV Revolution or Excel Sheet Illusion?
1. At a Glance – The EV Dream That Runs on… Financing Cash Flows?
Picture this: a company that grew revenue 323% in 3 years, launched a 3.2 GW battery plant, acquired multiple subsidiaries, entered EV cars, bikes, rickshaws, tractors… basically everything except rockets — and yet delivers a ROE of just 4.18% and trades at a spicy P/E of 94x.
Welcome to Mercury EV-Tech — where ambition is Tesla-level, but profitability feels like a roadside chai stall on a rainy day.
On paper, this looks like India’s next EV disruptor. In reality? Cash flows are screaming for help, promoters are slowly reducing stake, auditors and CEOs are resigning like it’s a group exit from a bad movie, and debt suddenly jumps like your heart rate after checking your portfolio.
And here’s the real masala: Borrowings went from ₹23 Cr to ₹54 Cr — almost 2x of sales.
So the big question is — Is this a genuine EV infra play in early innings… or just another “PowerPoint growth story funded by shareholder dilution”?
Let’s investigate.
2. Introduction – EV, Energy, or Endless Announcements?
Mercury EV-Tech didn’t start as an EV company.
It was originally Mercury Metals Ltd — which already sounds like a scrap dealer from Gujarat who suddenly discovered lithium-ion batteries during COVID.
Then in 2023, boom — rebranding happens. Now it’s Mercury EV-Tech.
Classic Indian smallcap glow-up.
Suddenly:
EV scooters
EV buses
EV golf carts
EV vintage cars (because why not?)
Battery manufacturing
Custom EV solutions
Basically, if it runs on electricity, Mercury wants to build it.
But here’s the twist — Scale ≠ Profitability
Despite all this expansion:
Sales: ₹113 Cr
PAT: ₹5.43 Cr
That’s a profit margin of ~4.8%.
And they’re trading at ₹513 Cr market cap.
So you’re paying premium valuation for… potential.
Or hype.
Or both.
3. Business Model – WTF Do They Even Do?
Let’s simplify this circus.
Mercury EV-Tech operates in 3 broad buckets:
1. EV Manufacturing
They produce:
Electric scooters
Electric cars
Electric buses
Golf carts
Vintage EVs (yes, seriously)
Target customers:
Hospitality
Resorts
Clubs
Industrial use
So not mass EV like Ola or Tata — more niche/custom.
2. Battery Business (The Real Bet)
Through subsidiary Powermetz Energy:
LFP battery packs
AIS-156 certified batteries
Orders worth ₹110 Cr (claimed)
This is where the real story is.
Because: EV = Battery game
3. Expansion via Acquisitions
Recent moves:
EV Nest merger
DC2 Mercury Cars acquisition
Traclaxx Tractors stake
Global Mercury Container (?? logistics angle)
This feels less like strategy… and more like Pokémon collection.
So what’s the business model?
“Acquire everything remotely related to EV and hope something clicks.”
4. Financials Overview – Growth Hai, But Quality Kahan Hai?
Quarterly Snapshot (₹ Crores)
Source table
Metric
Dec 2025
Dec 2024
Sep 2025
YoY %
QoQ %
Revenue
25.29
35.60
34.01
-29%
-26%
EBITDA
2.38
6.07
3.01
-61%
-21%
PAT
0.89
4.28
1.72
-79%
-48%
EPS
0.05
0.23
0.09
-78%
-44%
Annualised EPS = 0.05 × 4 = ₹0.20
Current Price = ₹27 So recalculated P/E = 135x (approx)
Reported P/E: 94x
Either way — expensive.
Commentary
Revenue falling QoQ and YoY
Profit collapsing
Margins unstable
Earnings dependent on other income earlier
This is not growth — this is volatility.
5. Valuation Discussion – Fair Value or Fantasy Value?
