@Iyyappan SMergeContent processor won't perform any upsert operations as this processor used to merge(append) flowfiles to create new flowfile based on the configs.
MergeContent processor Documentation:
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Merges a Group of FlowFiles together based on a user-defined strategy and packages them into a single FlowFile. It is recommended that the Processor be configured with only a single incoming connection, as Group of FlowFiles will not be created from FlowFiles in different connections. This processor updates the mime.type attribute as appropriate.
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If you are trying to do upsert operation then use HiveMerge as this strategy defined for these kind of use cases and keep your logic what needs to be done if record already exist/if not exist.
Refer to this link for more details and example how to do merge on Hive Side.