What’s new

• Mercury Ev-Tech receives GEDA approval to market 11 e-rickshaw models in Gujarat.
• Buyers get a ₹48,000 flat subsidy per vehicle for FY26-27 and FY27-28.
• Approval requires a ₹5 lakh refundable deposit; no minimum volume commitment.

Why it matters

For a micro-cap with a market cap of ₹657 cr and trailing revenue down 29%, a state-level government endorsement is a credibility boost that could improve brand visibility and unit economics. However, the absence of minimum volume commitments tempers near-term revenue visibility.

What we’re watching

• How many units Mercury actually sells under this programme in the first year.
• Whether similar approvals from other states follow.
• Any impact on the company's revenue trajectory, given trailing PAT was down 82.5%.

The full read

Mercury Ev-Tech has secured a state-level endorsement. It won't reverse the slide overnight. The Gujarat Energy Development Agency approved the sale of 11 lithium-ion e-rickshaw models under a programme offering buyers a flat ₹48,000 subsidy per vehicle. For a company with a market cap of ₹657 cr and trailing revenue down 29%, a government nod adds credibility. No minimum volume. That is the catch. The authorisation, valid till March 2028, comes with no guaranteed purchases and requires a ₹5 lakh refundable deposit. While a state government endorsement at this scale is a credibility boost, the absence of any volume commitment means the conversion to sales remains the real test. A modest start: the first model has a target of just 25 units.

Primary source: BSE · NSE