Expenses fell faster than revenue, lifting Mercury EV-Tech margin 11.42 pp
Net profit still fell 21.79% QoQ because the tax rate more than doubled, while higher depreciation and interest absorbed part of the operating gain.
Filed 31 Oct 2026, 22:05 IST · after market close · Mercury EV-Tech Ltd (MERCURYEV)
Key takeaways
- Consolidated operating margin widened 11.42 percentage points to 21.19% QoQ as expenses fell 21.25%, faster than the 9.86% revenue decline.
- Net profit fell 21.79% QoQ to Rs 1.22 cr as the tax rate rose 26.77 percentage points to 46.81%, despite PBT rising 17.44%.
- Mercury EV-Tech's 21.19% operating margin was 8.10 percentage points above the 13.09% median for 131 reported Consumer Discretionary peers.
Price around the results
Lower costs offset the revenue contraction
Revenue declined 9.86% QoQ, but expenses fell 21.25%, allowing operating profit to rise 95.71% and operating margin to widen 11.42 percentage points. Higher depreciation, up 254.26%, and interest, up 28.77%, absorbed part of that operating improvement before tax. Other income contributed 7.86% of PBT, so the quarter's pre-tax result was largely operating-led.
Tax increase reversed the operating profit gain
PBT rose 17.44% QoQ, but net profit fell 21.79% as the tax rate increased from 20.04% to 46.81%, a 26.77 percentage-point rise. The higher tax charge outweighed the improvement in operating profit and left EPS at Rs 0.08.
Margin was above the reported peer median
Mercury EV-Tech's 21.19% operating margin was 8.10 percentage points above the 13.09% median among 131 Consumer Discretionary peers that had reported the quarter. Sequentially, this was a sharp margin improvement from 9.77% in Q1FY27, although revenue momentum was weaker.
Results were filed after market close
Mercury EV-Tech filed its consolidated Q2FY27 results after market close on 31 October 2026. The immediate post-results stock response is therefore not covered here.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹30 cr | ₹33 cr | -9.86% |
| Other income | ₹0 cr | ₹0 cr | -50.00% |
| Expenses | ₹24 cr | ₹30 cr | -21.25% |
| Operating profit | ₹6 cr | ₹3 cr | +95.71% |
| Operating margin (%) | 21.19% | 9.77% | — |
| Interest | ₹1 cr | ₹1 cr | +28.77% |
| Depreciation | ₹3 cr | ₹1 cr | +254.26% |
| Profit before tax | ₹2 cr | ₹2 cr | +17.44% |
| Tax | ₹1 cr | ₹0 cr | +174.36% |
| Net profit | ₹1 cr | ₹2 cr | -21.79% |
| EPS (₹) | ₹0.08 | ₹0.00 | — |
Operating margin of 21.19% compares with a Consumer Discretionary sector median of 13.09% across 131 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 21.19% in the next quarter.
- Whether revenue and expenses move from the current Rs 30.09 cr and Rs 23.72 cr levels.
- Whether the tax rate moves down from 46.81% without further pressure on net profit of Rs 1.22 cr.