Mercury Trade Links faces CIRP notice amid Q1FY26 loss

Overview of the disclosure

Mercury Trade Links Limited has reported that it received a notice proposing the initiation of a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The disclosure was made to BSE Limited on August 3, 2026, and was filed under Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company said the matter is at the notice stage and that it is examining the allegations. It also indicated it is taking legal advice and will take steps to protect its interests. As of the disclosure date, no application had been admitted by the National Company Law Tribunal (NCLT) and no order had been passed.

What the CIRP initiation notice alleges

According to the company’s disclosure, the notice relates to an alleged operational debt. The notice states the operational creditor’s intention to approach the NCLT under Section 9 of the IBC, 2016. Section 9 proceedings are typically initiated by an operational creditor for resolution of an operational debt, subject to the legal process and admission by the tribunal. Mercury Trade Links said it has only received the notice and is evaluating the content of the allegations contained within it.

Parties involved and the proposed legal forum

The operational creditor named in the disclosure is Fettech Commercial Enterprises Private Limited. The proposed forum is the Hon’ble National Company Law Tribunal, which would take up the matter if and when an application is filed and subsequently admitted. The notice is dated January 13, 2026, and is titled as an application under Section 9 to initiate CIRP in respect of Mercury Trade Links Limited. The company’s disclosure frames this as a legal challenge that requires a response through appropriate channels.

Current status: notice stage, no admission reported

A key element in the disclosure is that, as of August 3, 2026, there was no admission of the application by the NCLT and no order had been passed. This distinction matters because insolvency proceedings under the IBC typically have significant consequences after admission, including timelines and potential restrictions. At this stage, Mercury Trade Links described the matter as being monitored closely, with further updates to be provided to the stock exchange if there are material developments.

Company’s response and next steps outlined

Mercury Trade Links stated it is obtaining appropriate legal advice and intends to take all necessary legal steps to protect its interests. The company also said management believes that appropriate legal remedies are available, and it will defend the matter before the appropriate forum if required. The Board of Directors, as per the disclosure, emphasized that the situation is being monitored closely. The company committed to continuing disclosures as required under Regulation 30 of the SEBI Listing Regulations.

Addresses cited in the notice

The disclosure includes address details for both parties referenced in the notice. Fettech Commercial Enterprises Private Limited is stated to be registered at 4, TF, B/2, Om Shivalaya CHS Ltd., Opp. Iswar Ami Krupa Flats, Near Vajinath School, Jivraj Park, Ahmedabad - 380051, Gujarat. The notice is stated to have been directed to Mercury Trade Links’ registered office at 624, Solaris Business Hub, Bhuyangdev Cross Road, Naranpura, Bodakdev, Ahmedabad - 380054, Gujarat. These details form part of the formal record described in the company’s intimation.

Financial context: Q1FY26 loss and revenue decline

The notice disclosure comes alongside a weak quarterly financial update cited in the provided information. Mercury Trade Links reported a standalone net loss of ₹63.64 crore for the quarter ended June 30, 2026 (Q1FY26), reversing a profit of ₹5.32 crore in the preceding quarter (Q4FY25). Revenue for Q1FY26 fell sharply to ₹5.33 crore. The company attributed the deterioration primarily to an Inter Corporate Deposit (ICD) default of ₹11.16 crore and a rise in other office and administrative expenses.

Auditor review flags ICD default and recovery notice

The statutory auditors, Sarang Shivajirao Chavan and Associates, issued a limited review report that highlighted the ICD default. The auditors noted that the company has defaulted in repayment of the ICD and has received a loan recovery notice for ₹11.16 crore plus interest. The Board of Directors approved the unaudited financial results on August 1, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI Listing Regulations. The report and the default disclosure point to a material liquidity risk, given the stated existence of a recovery notice.

Recent statutory auditor change

The information also notes that Mercury Trade Links appointed M/s Sarang Shivajirao Chavan and Associates as its statutory auditor effective July 7, 2026. This followed the resignation of M/s Bhatt Shah Mekhia & Co., which cited pre-occupation as the reason. While auditor changes can occur for routine reasons, the timing is part of the sequence of disclosures around the company’s financial reporting and review.

Key facts at a glance

Market and governance relevance

For listed companies, insolvency-related notices and material defaults often require timely disclosure because they can influence stakeholder assessment of credit risk and legal exposure. Mercury Trade Links’ statement that the matter is currently at a notice stage, with no admission by the NCLT as of the disclosure date, sets the immediate context for investors tracking the IBC process. Separately, the reported Q1FY26 loss, the stated ICD default, and the mention of a recovery notice are financial and legal datapoints that may shape how the market views liquidity and enforcement risk.

Conclusion

Mercury Trade Links has disclosed receipt of a Section 9 IBC notice from Fettech Commercial Enterprises proposing CIRP over an alleged operational debt, while stating that no NCLT admission has occurred as of August 3, 2026. The company says it is examining the allegations, taking legal advice, and will defend the matter if required. Investors are likely to monitor two parallel tracks in future disclosures: any filing or admission at the NCLT and updates on the company’s liquidity position, including the ICD recovery notice and subsequent financial reporting.