Mercury Laboratories reported a strong fiscal year 2026, with profit after tax rising 54% to Rs 4.83 crore. While domestic sales faced a minor decline, robust growth in exports and improved operational efficiency fueled the bottom line. The company also announced a dividend of Rs 3.50 per share and is investing Rs 30 crore in a new injectable manufacturing facility in Jarod.
Mercury Laboratories FY26 Net Profit Climbs 54%
Revenue stood at Rs 75.94 crore; EPS rose to Rs 40.28 per share.
Reader Takeaway: Strong export growth and operational efficiency drove profit, though legacy NCLT compounding matters remain pending.
What just happened
Mercury Laboratories Limited released its 45th Integrated Annual Report for FY 2025-26. The company saw a significant surge in profitability with a 53.71% increase in Profit After Tax (PAT), reaching Rs 483.40 lakh compared to Rs 314.49 lakh in the previous year. Revenue from operations saw a marginal increase of 1.10% to Rs 7,593.67 lakh.
Why this matters
The bottom-line growth highlights the firm’s ability to manage margins despite a 5.61% decline in domestic sales. The growth in direct exports by 18.62% indicates a successful pivot toward international demand. Shareholders will also benefit from the board's recommendation of a Rs 3.50 per share final dividend.
Expansion
The company has initiated a new injectable manufacturing facility at Unit 2 (Jarod). The project, estimated at Rs 30 crore, aims to add an annual capacity of 75 million units, positioning the firm for future volume growth.
Risks to watch
Management is currently involved in a compounding application with the NCLT regarding compliance issues under the Companies Act, 2013, related to FY 2014-15 and FY 2015-16. The outcome of this legal process remains awaited and is a key monitoring point for governance-focused investors.
What to track next
The 45th Annual General Meeting is scheduled for September 28, 2026. Investors should track the progress of the Jarod facility construction and any updates on the pending NCLT proceedings.