Mercury Ev-Tech gets Gujarat nod to sell subsidised e-rickshaws
Approval covers 11 lithium-ion models, each eligible for a ₹48,000 flat subsidy. No minimum volume is guaranteed.
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 this 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.
Questions answered
- Which models are covered by the GEDA approval?
- The approval covers 11 models of lithium-ion battery-operated three-wheelers. The first low-speed model has a target of 25 units.
- How much subsidy does a buyer get?
- Buyers of Mercury's eligible e-rickshaws in Gujarat receive a flat subsidy of ₹48,000 per vehicle under the state's programme for 2026-27 and 2027-28.
- Is there any sales volume guarantee from the government?
- No. The authorisation explicitly does not guarantee a minimum sales volume. It is also subject to a refundable security deposit of ₹5 lakh.
- How significant is this for Mercury Ev-Tech's business?
- The approval expands Mercury's addressable market with government backing, which can boost brand perception. However, with trailing revenue falling 29% and PAT down 82.5%, converting this approval into actual sales is the key challenge.