Audited financial results for the quarter and year ended 31st March 2026
MERCANTILE · price
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Mercantile Ventures Ltd reported standalone total income of Rs 4,543.25 lakhs for FY2026, up 16.8% from Rs 3,888.26 lakhs in FY2025. However, standalone net profit declined sharply to Rs 126.62 lakhs from Rs 689.16 lakhs in the previous year, a drop of about 82%. On a consolidated basis, total income rose to Rs 9,634.77 lakhs (up 13.3%) but net profit fell to Rs 690.06 lakhs from Rs 1,731.62 lakhs. The consolidated auditor issued a qualified opinion regarding a subsidiary (Walery Security Management Ltd) holding Rs 22 crores in preference shares with unpaid dividends since FY2019-20, where valuation reports were unavailable. Standalone operating cash flow was deeply negative at Rs 6,969.60 lakhs, raising concerns about cash generation. The company also disclosed a proposed merger with i3 Security Private Limited.
The sharp decline in net profit despite revenue growth signals margin compression or higher tax charges. The qualified audit opinion on consolidated results and negative operating cash flow on standalone basis are concerns for investors. The merger proposal adds uncertainty about future structure.