Small-cap EV stock Mercury Ev-Tech made headlines on Tuesday, surging over 14% despite the overall market moving sideways. The stock opened at ₹39.89 on the BSE and touched an intraday high of ₹40.99, reflecting strong investor interest in the small-cap electric vehicle manufacturer.
India-EU Free Trade Agreement Boosts Sentiment
Investors are optimistic due to the India-European Union Free Trade Agreement (FTA), which is expected to exempt battery electric vehicles from import duties for the first five years. This move aims to protect domestic investments, benefiting local EV manufacturers like Mercury Ev-Tech. While major auto stocks faced pressure over potential competition from EU imports—where import duties could drop from 66–110% to 30–35%—Mercury Ev-Tech emerged as a clear beneficiary, highlighting its strong domestic positioning.
Company Overview and Product Portfolio
Small-cap EV stock Mercury Ev-Tech is a diversified EV manufacturer with a range of products, including scooters, cars, buses, loaders, and golf carts. In addition to electric vehicles, the company also invests in renewable energy solutions, emphasising sustainability and innovation in the domestic market.
Robust Financial Performance
The company reported impressive growth in Q2FY26, with net sales climbing 51% to ₹34.01 crore and net profit rising 35% to ₹1.72 crore compared to Q1FY26. For the first half of FY26, revenue surged 142% to ₹56.58 crore, and net profit increased by 43% to ₹2.99 crore. On a year-over-year basis, Q2 net profit grew 15.7% to ₹1.84 crore, with revenue from operations expanding over 75% to ₹34 crore, demonstrating the company’s improving scale and profitability.
Key Developments at AGM
Mercury Ev-Tech conducted its 39th Annual General Meeting on December 15, 2025, in Vadodara. Shareholders approved five significant resolutions, including the reappointment of Director Darshankumar Shah, the appointment of Riya Sharma as a non-executive independent director, and the endorsement of audited FY25 financial statements. The meeting also authorised the board to extend loans or securities to entities with director interests. Chairman and MD Jayesh Raichandbhai Thakkar outlined the company’s strategic direction and operational performance.
Market Performance Highlights
The stock’s recent momentum continued from January 23, when shares closed at ₹36.28, nearly 15% higher, amid trading volumes exceeding 11 lakh shares. This rally underscores investor confidence in the company’s growth prospects.
Overall, small-cap EV stock Mercury Ev-Tech demonstrates strong fundamentals, strategic advantage from the India-EU FTA, and robust financial performance, making it a key player in India’s growing electric vehicle market.
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