By Chaitanya
BBA Finance Graduate & 6+ Years of Experience in Stock market & Finance
In a remarkable display of market confidence, shares of Mercury EV-Tech Ltd, a Gujarat-based player in the rapidly expanding electric vehicle (EV) sector, witnessed a significant jump on August 20, 2025. The stock climbed by 8.87% to Rs 49.60 per share, up from its previous close of Rs 45.56, largely propelled by a series of robust financial results and promising growth indicators. This surge has put the spotlight back on Mercury EV-Tech Share Performance, inviting investors to take a closer look at its journey.
Understanding the Stock’s Momentum
The recent uptick reflects renewed investor interest, despite the stock having experienced some short-term fluctuations. Its 52-week high stands at a commanding Rs 139.20 per share, while the 52-week low is Rs 45.00, highlighting the volatility intrinsic to growth stocks in a dynamic sector. Currently, the company commands a market capitalisation in the range of Rs 861 to 865 crore, making it a notable entity in the small-cap segment. On August 20, 2025, the stock closed higher, signaling a positive shift from recent bearish trends. For a quick overview of recent stock movements, refer to the table below:
| Date | Price (Rs) | Change (%) |
|---|---|---|
| August 20, 2025 (Today) | 49.60 | +8.87% |
| August 19, 2025 (Previous Close) | 45.56 | -0.24% |
| August 15, 2025 | 46.49 | -3.77% |
A Closer Look at Financial Triumphs
Mercury EV-Tech Ltd has consistently delivered impressive financial results, particularly over the past few years. The company’s consolidated profit for the quarter ended June 2025 was reported at Rs 1.63 crore, with a total income of Rs 23.07 crore. This follows a strong performance in the financial year 2024, where the company posted a profit of Rs 1.99 crore on a total income of Rs 22.02 crore.
One of the most compelling aspects of Mercury EV-Tech’s journey is its exponential growth in net sales and profitability. From March 2022 to March 2025, net sales rocketed from a modest Rs 1.18 crore to an impressive Rs 89.64 crore. Concurrently, net profit after tax witnessed a substantial rise from Rs 0.23 crore to Rs 7.70 crore in the same period. This trajectory is further evidenced by the growth in Earnings Per Share (EPS), which climbed from Rs 0.12 in March 2022 to Rs 0.42 in March 2025, with a Trailing Twelve Months (TTM) EPS of Rs 0.50. The company’s total assets also expanded significantly, growing from Rs 1.48 crore in March 2022 to Rs 150.60 crore by March 2024, as per data compiled by leading financial portals like Moneycontrol.
Annual Financial Performance Summary
| Particulars (Rs. Crores) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|
| Net Sales / Revenue | 1.18 | 16 | 22 | 90 | 108 |
| Operating Profit | 0.27 | 2 | 3 | 8 | 9 |
| Profit Before Tax | 0.32 | 2 | 3 | 10 | 11 |
| Profit After Tax (PAT) | 0.23 | 1 | 2 | 8 | 9 |
| Earnings Per Share (EPS) Rs | 0.12 | 0.08 | 0.11 | 0.42 | 0.50 |
Quarterly Performance for March 2025
The quarterly financial results for March 2025 paint a picture of operational efficiency. Revenue stood at Rs 21.13 crore, with operating expenses managed at Rs 19.60 crore, leading to a net profit of Rs 1.12 crore. The net profit margin for this quarter was a healthy 5.30%, with an EBITDA of Rs 1.70 crore and an effective tax rate of 16.34%.
| Particulars | Mar 2025 |
|---|---|
| Revenue | 21.13 |
| Operating Expense | 19.60 |
| Net Profit | 1.12 |
| Net Profit Margin (%) | 5.30% |
| Earnings Per Share (EPS) | 0.06 |
| EBITDA | 1.70 |
| Effective Tax Rate (%) | 16.34% |
Impressive Growth Metrics and Key Ratios
The first six months ending June 2025 have further solidified Mercury EV-Tech’s growth story. The company reported net sales of Rs 53.25 crore, marking an astounding 464.09% Year-on-Year (YoY) growth. Profit After Tax (PAT) for this period surged by 390.28% YoY, reaching Rs 3.53 crore. This indicates not only robust demand for its products but also efficient business expansion strategies. Over the past three years, the company has shown exceptional compounded growth, with sales growth at 324%, profit growth at 225%, and a stock price Compound Annual Growth Rate (CAGR) of 109%. While the company’s Return on Equity (ROE) is approximately 4% and Return on Capital Employed (ROCE) averaged 2.6% (peaking at 3.2% from FY2023-2025), concerns have been raised by some analysts, like those at Equitymaster, regarding its high Debt to EBITDA ratio of 9.32 times. Investors typically look for lower debt ratios for healthier balance sheets. Here’s a summary of key metrics:
| Metric | Value |
|---|---|
| Market Cap | Rs 861 – 865 crore approx. |
| Return on Capital Employed (ROCE) | Average 2.6%, Peak 3.2% (FY2023-2025) |
| Return on Equity (ROE) | Approx. 4% |
| Debt to EBITDA ratio | 9.32 times |
| 3-Year Compounded Sales Growth | 324% |
| 3-Year Compounded Profit Growth | 225% |
| 3-Year Stock Price CAGR | 109% |
Recent Developments Driving the Narrative
The recent news flow around Mercury EV-Tech has been largely positive, underpinning the August 20 surge:
- August 20, 2025: The stock price jumped 8.87% to Rs 49.60, directly attributing to the announcement of strong Q1 2025-26 results, showing a consolidated profit of Rs 1.63 crore and total income of Rs 23.07 crore.
- August 19, 2025: The company reported impressive six-month net sales of Rs 53.25 crore, showcasing a 464.09% YoY growth, and a Profit After Tax (PAT) of Rs 3.53 crore, a 390.28% YoY increase. These figures were widely highlighted by financial news outlets, indicating robust expansion.
- August 16, 2025: Earlier, the stock traded at Rs 46.49, experiencing some bearish momentum due to concerns like the high Debt to EBITDA ratio (9.32) and lower ROE (2.73%).
- August 11, 2025: Priced at Rs 49.50, the stock demonstrated short-term volatility, despite consistent long-term financial improvements and net sales doubling in recent quarters.
Conclusion: A Promising Road Ahead?
Mercury EV-Tech Ltd’s journey exemplifies a high-growth trajectory in the burgeoning Indian EV market. While the Mercury EV-Tech Share Performance has seen its share of short-term volatility, its underlying financial strength, marked by phenomenal sales and profit growth over recent years, paints a compelling picture for long-term investors. As the EV sector continues to gain momentum in India, driven by government initiatives and increasing consumer adoption, companies like Mercury EV-Tech are well-positioned to capitalise on this wave. However, potential investors should keep an eye on key ratios like debt levels while appreciating the strong operational gains.
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