Company Overview
Mercury EV-Tech Limited convened its 40th Annual General Meeting on September 30, 2026 via video conference, seeking shareholder approvals for material related party transactions and auditor appointments.
Financial Performance
FY26 financial results showed mixed performance with consolidated revenue growing to ₹9,873.84 lakhs (₹10,793.67 crores) from ₹9,397.84 lakhs in FY25. However, net profit declined significantly by 44% to ₹418.44 lakhs (₹438.75 crores) from ₹748.04 lakhs in the previous year. Other expenses rose substantially to ₹855.34 lakhs from ₹518.81 lakhs, with notable increases in discount on sales, rent, electricity, and advertisement expenses.
Key AGM Agenda Items
The company sought member approval for material related party transactions with aggregate limits of ₹200 crores per annum for FY 2026-27 with five entities: Sunbuy Renewables Limited (common director), DC2 Mercury Cars Private Limited (69.84% subsidiary), Powermetz Energy Private Limited (wholly owned subsidiary), Traclaxx Tractors Private Limited (65% subsidiary), and Go Evexia division of Evexia Lifecare Limited (common director).
Corporate Governance Matters
Shareholders were asked to approve the reappointment of M/s Tejas K. Soni, Chartered Accountants as statutory auditors for 3 years and M/s Nisarg Sharma & Associates as secretarial auditors for 5 years. The board also proposed reappointment of Mr. Lalit Vitthal Waankhede who retires by rotation.
Subsidiary Operations and Loans
The company maintains four subsidiaries: Powermetz Energy (100%), Haitek Automotive (70%), Traclaxx Tractors (65%), and DC2 Mercury Cars (70.11%). Significant interest-free loans were extended to subsidiaries totaling ₹3,107.13 lakhs outstanding, with maximum exposure reaching ₹3,174.68 lakhs to Powermetz Energy during the year.
Related Party Transactions
Substantial related party transactions were disclosed, including sales of goods (₹477.30 lakhs), purchase of goods (₹347.38 lakhs), and loans given (₹223.59 lakhs). Outstanding balances included accounts payable of ₹129.97 lakhs and loan receivables of ₹3,107.13 lakhs from related entities.
Financial Position and Ratios
The company's financial ratios showed deterioration with Return on Equity declining to 2% (from 3%), Inventory Turnover Ratio dropping to 1.29 times (from 2.78 times), and Net Profit Ratio falling to 4% (from 8%). Management attributed these changes to business expansion, increased working capital utilization, and higher operating costs.