Shares of Mercury EV-Tech Ltd. rallied strongly in early trading, climbing about 5% to ₹34.96 on 25 February 2026 amid positive sentiment driven by robust nine-month FY26 profit growth and a notable increase in foreign institutional investor (FII) stake. The electric vehicle technology company, known for its diversified EV solutions, has delivered impressive long-term returns and garnered renewed attention from both retail and institutional participants on Dalal Street.
Author : Aashiya Jain | EQmint | Market News
The stock market can sometimes lift up companies that, at first glance, fly under the radar and Mercury EV-Tech Ltd. has become one such name this week. On Wednesday, 25 February 2026, the small-cap EV company’s share price surged around 5%, touching about ₹34.96 during intraday trading. This uptick reflects a fresh wave of interest in the company’s improving financials and growing participation by overseas investors, making it one of the more talked-about EV stocks on Dalal Street recently.
Who Is Mercury EV-Tech?
Founded with a vision to support India’s transition to cleaner mobility, Mercury EV-Tech is an electric vehicle technology company that offers end to end EV solutions, including components such as batteries, chassis, battery management systems and complete EV platforms across segments like two, three and four wheelers. The company prides itself on extending a comprehensive suite of electric mobility products and manufacturing capabilities that position it as a one stop solution in a rapidly evolving EV ecosystem in India.
Over the past years, Mercury EV-Tech has also expanded its footprint through strategic acquisitions such as its stake in Traclaxx Tractors Pvt. Ltd., aimed at synergising EV tech with agricultural machinery, and in Haitek Automotive Pvt. Ltd., bolstering its presence in the automotive components space. These moves reflect an ambition to grow beyond conventional EV offerings into broader technology and mobility solutions.
What Triggered the Rally?
1. Solid Profit Growth for 9M FY26
One of the drivers behind the share price uptick is Mercury’s improved financial performance in the first nine months of FY26. The company reported net sales of ₹81.86 crore and a net profit of ₹4.22 crore during this period. While these figures may seem modest compared with larger EV peers, the growth trend matters in the context of the company’s historical performance. For an emerging small-cap EV player, demonstrating consistent profitability over an extended period is a strong signal to the market.
2. Increased FII Participation
Perhaps even more positive from a sentiment perspective has been the increase in foreign institutional investor (FII) stake in the company. During the December quarter, FIIs bought an additional 14,71,638 shares, lifting their holding in Mercury EV-Tech to about 2.68% from around 1.90% in the preceding September quarter. Foreign investor interest often acts as a confidence booster in smaller, growth-oriented stocks, and this uptick was no exception, helping fuel buying momentum.
3. Broader Market Rally Helps Small Caps
The broader market sentiment this week has also been supportive of cyclical and small-cap stocks. With some relief rallies on Dalal Street and positive cues from global equity trends, many high-beta names, including EV-linked companies like Mercury, have caught the attention of traders looking for growth opportunities.
Long-Term Performance: A Multibagger Story
Mercury EV-Tech’s share price history adds depth to the short-term gains seen this week. Over the past five years, the stock has delivered extraordinary returns reportedly over 4,650%, making it a multibagger pick for long-term investors who saw value early on. Despite this remarkable performance, the share price still trades well below its all-time high recorded in 2025, suggesting that though the stock has come off recent peaks, its long-term trajectory remains noteworthy for those with a broader investment horizon.
At its peak in April 2025, the stock approached around ₹76.93, though it subsequently retreated amid broader small-cap volatility. Such price fluctuations highlight both the potential upside and risks inherent in emerging EV plays where sentiment and sector rotations can significantly influence valuations.
Investor Perspectives: Balancing Optimism and Caution
Many retail participants view Mercury EV-Tech as a high-growth, high-risk opportunity. With the EV sector in India still in an early adoption phase and government incentives pushing MaaS (mobility as a service) initiatives, small-cap EV companies can attract speculative interest. Retail traders, particularly those who witnessed the stock’s multibagger past, seem ready to bet again on its growth potential.
Looking Ahead
The recent 5% surge underscores how sentiment and financial results can intersect to drive price action in growth-oriented stocks like Mercury EV-Tech. Going forward, the company’s ability to sustain profit growth, expand its product range, and integrate acquisitions effectively will be key benchmarks for investors.
In a market where narratives around clean energy and electric mobility are growing louder, Mercury EV-Tech’s stock performance this week serves as a reminder that seasoned investors and retail participants alike are watching closely for the next leg of EV transformation weighing long-term vision with short-term market realities.
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Disclaimer: This article is not an investment advice and is for educational purpose only
