💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (EV and renewable energy products). While absolute revenue is not disclosed, the Inventory Turnover Ratio increased by 100.33% (from 3.06 to 6.13), indicating a significant acceleration in sales velocity and stock-to-revenue conversion.

Profitability Margins

Operating Profit Margin decreased from 16.98% to 12.80% (a 24.64% reduction) due to higher production and overhead costs from the commencement of manufacturing. Net Profit Margin decreased from 11.43% to 9.44% (a 17.41% reduction).

EBITDA Margin

Not explicitly disclosed, but Operating Profit Margin stands at 12.80% for FY 2024-25, down from 16.98% YoY.

Capital Expenditure

Not disclosed in absolute INR, but the company reported the commencement of manufacturing operations, which involved setup-related expenses and initial input costs.

Credit Rating & Borrowing

Not disclosed, but the Interest Coverage Ratio improved by 33.81% (from 19.24 to 25.75), indicating a stronger capability to service debt due to reduced finance costs.

⚙️ Operational Drivers

Raw Materials

Battery cells, raw materials for battery production, and electronic components for EV drivetrains.

Capacity Expansion

The company is in the initial stages of manufacturing operations with current 'under-utilisation of capacity' reported; specific MT/unit capacity figures are not disclosed.

Raw Material Costs

Raw material costs are cited as 'higher input costs' during the initial manufacturing phase, contributing to a 24.64% drop in operating margins.

Manufacturing Efficiency

Inventory Turnover Ratio improved 100.33% to 6.13, reflecting faster conversion of stock into revenue.

📈 Strategic Growth

Expected Growth Rate

22%

Growth Strategy

The company aims to capitalize on the 22% YoY growth in the E2W segment by scaling its manufacturing operations, leveraging the PM E-DRIVE subsidy program (extended to March 2028), and utilizing PLI incentives for EV and battery manufacturing to boost domestic production.

Products & Services

Electric two-wheelers (E2W), electric three-wheelers (E3W), and other related renewable energy products.

Brand Portfolio

Mercury EV-Tech.

New Products/Services

Diversified vehicle platforms ranging from two-wheelers to commercial vehicles are planned to target multiple customer segments.

Market Expansion

Targeting both urban and rural markets where consumer interest in sustainability is rising.

Market Share & Ranking

Industry-wide EV penetration in the 2W segment is 6.1% (up from 5.4% YoY); company-specific market share is not disclosed.

🌍 External Factors

Industry Trends

The E2W segment expanded by 22% YoY with penetration reaching 6.1%. The industry is shifting toward sustainable mobility supported by the PM E-DRIVE program and PLI schemes.

Competitive Landscape

Faces intense competition from established ICE vehicle manufacturers and emerging EV players.

Competitive Moat

Moat is built on early-stage manufacturing localization and alignment with government subsidy frameworks (GST at 5%, road tax exemptions), though sustainability is challenged by rapid technological shifts in battery chemistry.

Macro Economic Sensitivity

Sensitive to rural recovery (which supported 7.5% YoY 2W industry growth) and environmental awareness trends.

Consumer Behavior

Shift toward green transportation due to air pollution concerns, though 'range anxiety' and high upfront costs remain behavioral barriers.

Geopolitical Risks

Risks related to the global supply chain for battery raw materials and international mining regulations.

⚖️ Regulatory & Governance

Industry Regulations

Adheres to PM E-DRIVE (subsidy program), FAME India Phase II (incentive cuts), and PLI for EV/Battery manufacturing.

Environmental Compliance

Not disclosed in absolute INR, but the company is committed to sustainable sourcing and reducing urban air pollution.

Taxation Policy Impact

Benefits from lower GST, road tax, and registration fees for EVs; interest deductions are available for EV loans.

⚠️ Risk Analysis

Key Uncertainties

Regulatory uncertainty regarding fluctuating government policies and potential subsidy rollbacks could impact long-term planning.

Geographic Concentration Risk

Not disclosed, but infrastructure gaps in Tier-2 and rural areas are identified as a major barrier.

Third Party Dependencies

High dependency on raw material suppliers for battery production.

Technology Obsolescence Risk

Rapid advancements in battery technology (energy density/charging speed) pose a risk of product obsolescence if R&D does not keep pace.

Credit & Counterparty Risk

Trade receivables increased, contributing to a higher Current Ratio of 16.71, indicating potential credit exposure to dealers/distributors.