Outcome of the Board meeting
MERCANTILE · price
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The Board of Directors of Mercantile Ventures Ltd, at its meeting on 6 February 2026, approved the unaudited financial results for the quarter and nine months ended 31 December 2025, which were also subjected to a limited review by statutory auditors Venkatesh & Co. On a standalone basis, Q3 FY26 total income rose to Rs. 1,128.19 lakh (up ~18% YoY from Rs. 956.62 lakh) and net profit after tax grew to Rs. 49.39 lakh (up ~38% YoY from Rs. 35.66 lakh). However, on a 9-month standalone basis, the company swung to a net loss of Rs. 13.44 lakh versus a profit of Rs. 574.46 lakh in the same period last year. On a consolidated basis, Q3 FY26 total income grew to Rs. 2,574.69 lakh (up ~29% YoY) with a continuing-operations PAT of Rs. 80.29 lakh, but a large loss of Rs. 2,788.82 lakh from discontinued operations dragged the overall result down. The consolidated auditor's report includes a qualification/emphasis of matter regarding the subsidiary Walery Security Management Limited's Rs. 22 crore investment in cumulative preference shares (dividends unpaid since FY 2019-20) where the auditor was unable to assess fair value due to absence of valuation reports.
Mixed signals for shareholders — healthy Q3 standalone earnings growth and strong consolidated revenue growth are offset by a 9-month standalone loss, a large discontinued-operations drag, and an audit qualification on a subsidiary's Rs. 22 crore investment that remains unresolved. Investors should watch for clarity on the Walery preference shares and on the discontinued operations before drawing conclusions on the stock's direction.