Precision Camshafts Limited — Q3 FY26 earnings call

Call held 6 Mar 2026

Management summary

Precision Camshafts Limited reported a turnaround in net profit for Q3 FY26, reaching INR 9.58 crores, supported by strong standalone performance and significant new order wins totaling INR 1,500 crores. The company is investing INR 120 crores in capacity expansion, including a new Solapur facility, and has expanded its solar power capacity to 29 MW. However, the consolidated revenue saw a QoQ decline, and the EV business faces challenges, leading to a strategic shift towards HCV electrification and a domestic focus for growth and diversification.

Highlights

  • Net profit of INR 9.58 crores in Q3 FY26, compared to a deficit of INR 42 crores in the previous quarter and a profit of INR 5 crores in Q3 FY25.

  • Standalone revenue reached INR 153 crores with a 14% EBITDA margin, driven by increased demand from existing Indian customers.

  • Secured new orders with a cumulative business potential of INR 1,500 crores, extending the order book till 2032.

  • Total solar power capacity increased to 29 megawatts with the commissioning of a 14 MW tranche in December 2025, aiming to reduce power costs and carbon footprint.

Concerns

  • Consolidated business revenue decreased by 9% quarter-on-quarter to INR 188 crores.

  • MEMCO, a subsidiary, reported a net loss of INR 45 lakhs in Q3 FY26, compared to a net profit of INR 1.5 lakhs in the previous quarter.

  • The EV business, particularly the Tata Ace conversion, has nearly stopped due to regulatory changes and razor-thin margins.

  • EMOSS, the e-mobility subsidiary, reported a net loss of INR 0.4 crores, impacted by prevailing market conditions and geopolitical changes in Europe.

Key financials

  1. Consolidated Revenue ₹188 Cr -9%QoQ
  2. Consolidated EBITDA Margin 12.5%
  3. Consolidated PAT Margin 4.9%
  4. Net Profit ₹9.58 Cr +91.6%YoY
  5. Standalone Revenue ₹153 Cr
  6. Standalone EBITDA Margin 14%
  7. Standalone PAT Margin 6.2%

What they filed

Q1 FY27: revenue up 16.8%, net profit down 42.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue168 143 137 137 140 −17%143 +0%157 +15%160 +17%
EBITDA27 16 15 17 13 −52%12 −25%20 +33%11 −35%
Net profit18 5 -34 26 -43 −339%10 +100%13 +138%15 −42%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹35.77 Cr Total
  • EMOSS ₹23.95 Cr 67.0%
  • MEMCO ₹11.82 Cr 33.0%

Order book

high confidence

Total value

₹1,500 Cr

as of 2025-12-31 quantified

Execution

over the lifetime of these programs (till 2032)

New orders from key customers like Maruti Suzuki, Hyundai, Mahindra, Tata Motors, Renault Nissan, and Uzbekistan Auto provide significant revenue visibility and extend the order book till 2032.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Capacity enhancement and advanced manufacturing capabilities, including a new state-of-the-art manufacturing facility in Solapur. ₹120 Cr
    • Commissioning of second tranche of solar power plant, increasing total capacity.
    To support these new programs, PCL is investing approximately INR120 crores towards capacity enhancement and advanced manufacturing capabilities. A key part of this investment is development of a state-of-the-art manufacturing facility at our new location in Solapur designed to meet global standards in efficiency, quality, and scalability.

Guidance & targets

Revenue

  • MEMCO Revenue Revenue · next 2 years · High confidence INR 100 crores
    We have a target and a roadmap to reach about INR100 crores in the next 2 years and we are actively working with customers to achieve that target. So that's on MEMCO.

    — Karan Shah

EV Product Launch

  • EMOSS India Electric HCV Market Entry EV Product Launch · next year · Medium confidence in the market next year
    And on the India side of things, we are developing this electric HCV which will be in the market in the next year.

    — Karan Shah

What to watch in Q4 FY26

HCV Commercial Delivery & Order Expansion

next quarter
Current Delivery to customer next month (March 2026), LOI in place for certain volumes.
Target Successful delivery, expansion beyond initial customer, new LOIs/orders.

Why it matters

This is a new revenue stream in the EV segment, and its success will validate the company's focused EV strategy.

on the HCV, we are working directly with a customer for this vehicle... Yes the vehicle will be delivered to the customer in the next month and not our internal testing.

Risks & concerns

  • EV Business Slowdown and Regulatory Challenges

    medium

    The EV business globally and in India has slowed down, leading to the discontinuation of the Tata Ace conversion due to regulatory changes and razor-thin margins. EMOSS is also impacted by market conditions and geopolitical changes.

    Management acknowledged

  • International Market Degrowth and M&A Unattractiveness

    medium

    International markets (Europe/America) are experiencing degrowth, and available companies for sale are under financial distress, making them unattractive for acquisitions.

    Management acknowledged

Q&A highlights

7 direct
EV Business Strategy and Tata Ace Conversion Direct
the Tata Ace is nearly stopped because of all the challenges that I mentioned before. Again, also it's a razor-thin margin kind of product so it was very difficult to scale up in the order that in the fashion that we wanted to. Number two, on the HCV, we are working directly with a customer for this vehicle.

Clarifies the discontinuation of the Tata Ace EV conversion and the strategic shift to a direct customer model for HCVs, indicating a more focused and potentially profitable EV strategy.

Asked by Gautam Rajesh

Regulatory Requirements for HCV Delivery Direct
No, we will do this in parallel because we are testing the vehicle as well as certifying it parallelly.

Addresses concerns about the timeline and process for regulatory compliance for the new HCV product, suggesting a streamlined approach to market entry.

Asked by Gautam Rajesh

Sustainability of Demand and OEM Slowdown Signals Direct
I think as I mentioned during the opening remarks, we've received several new orders from customers be it in India or globally and we actually see an increase in business in the next 2 to 3 years compared to where we are today, for which we have done the capex in the plant as well as the machining lines.

Reassures investors about future demand visibility and the company's preparedness with capacity expansion, countering potential concerns about industry slowdown.

Asked by Prithika

MEMCO and EMOSS Business Performance Direct
MEMCO, the company is small, it's about 5% or 6% of the total group revenue. It is stable, self-sufficient, self-funded. It has about INR50 crores-INR55 crores in turnover and has a profitability of around 13%-14% EBITDA margins and continues to be stable. We have a target and a roadmap to reach about INR100 crores in the next 2 years...

Provides specific financial details and future targets for the MEMCO subsidiary, offering clarity on its contribution and growth potential.

Asked by Prithika

Acquisitions, Strategic Partnerships, and Diversification Direct
We are very actively looking at opportunities, but these will be necessarily in India. We are not looking at the European or American market for these type of opportunities and we are actively looking in the Indian market where there is growth in the automotive as well as non-automotive sector including agriculture, non-auto, industrial and defense and we are looking at all opportunities which will basically be adjacent to our expertise which is casting, machining, forging and assembly.

Outlines the company's strategic focus for inorganic growth and diversification, emphasizing a domestic-centric approach aligned with core competencies.

Asked by Kalpesh Shah

Reasons for Avoiding International M&A Direct
I think the examples have been very clear in the last few years where the international markets are actually not growing at all. In fact there is degrowth in these markets. Companies that are available for sale are under tremendous financial distress and that's not something that we would like to take on board.

Explains the rationale behind the domestic focus for M&A, highlighting the risks and lack of attractive opportunities in international markets.

Asked by Kalpesh Shah

Impact of Europe/North America Expansion on Revenue Mix Direct
Look the comment related to expansion in Europe and North America is purely related to our camshaft business and machined components business. It is not related to the EV business... At this point of time, Indian and export is about 50-50. We see it remaining like that actually, not because we don't want to grow the foreign export market, but because the Indian market is one which is growing in double digits nearly.

Clarifies that international expansion is for traditional ICE components, not EV, and that the domestic market's strong growth is expected to maintain the current 50-50 domestic-export revenue mix.

Asked by Subodh More

3 min read 7 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Precision Camshafts Limited reported a net profit of INR 9.58 crores for Q3 FY26, a significant improvement from a INR 42 crores deficit in the previous quarter and a profit of INR 5 crores in the corresponding quarter of FY25. The standalone business achieved a revenue of INR 153 crores with an EBITDA margin of 14% and a PAT margin of 6.2%. However, the consolidated business saw a 9% quarter-on-quarter decrease in revenue to INR 188 crores, with a consolidated EBITDA margin of 12.5% and PAT margin of 4.89%.

New Business Wins and Order Book Expansion

The company secured new orders with a cumulative business potential of nearly INR 1,500 crores over the lifetime of these programs, extending its order book till 2032. These include orders from Maruti Suzuki for 12.4 lakh camshafts/year starting 2027, Hyundai India for 2.8 lakh camshafts/year starting 2026, Mahindra for 6 lakh camshafts/year starting FY27, Tata Motors for 2.8 lakh camshafts/year starting FY27, and Renault Nissan India for 1.2 lakh machined camshafts/year starting FY27.

EV Business Strategy and Challenges

The EV business globally and in India has experienced a slowdown. The Tata Ace conversion business has nearly stopped due to regulatory changes and razor-thin margins. The company is now focusing on the Heavy Commercial Vehicle (HCV) market, electrifying a vehicle for a direct customer, with delivery expected next month. Regulatory certification and homologation for this HCV will be conducted in parallel with testing.

Capacity Expansion and Solapur Facility

PCL is investing approximately INR 120 crores towards capacity enhancement and advanced manufacturing capabilities. A key part of this investment is the development of a new state-of-the-art manufacturing facility in Solapur. The plant infrastructure is already completed, and machinery installation is progressing, with full completion expected within the current calendar year, significantly enhancing production capabilities.

Solar Power Plant Commissioning

The second tranche of the company's solar power plant, with a capacity of 14 megawatts, was commissioned in December 2025. This addition brings the total solar plant capacity to 29 megawatts. The enhanced capacity is expected to reduce the company's dependency on non-renewable energy sources, leading to lower power costs and a reduced carbon footprint.

Subsidiary Performance (MEMCO & EMOSS)

MEMCO, contributing 5-6% of total group revenue, reported a net loss of INR 45 lakhs in Q3 FY26, compared to a net profit of INR 1.5 lakhs in the previous quarter, primarily due to a loss of sale of INR 2.8 crores. Management aims for MEMCO to reach INR 100 crores in turnover within the next two years from its current INR 50-55 crores. EMOSS reported a net loss of INR 0.4 crores on a revenue of INR 23.95 crores, with its European operations stable but impacted by broader market conditions and geopolitical factors.

Strategic Focus on Domestic Market and Diversification

PCL is actively pursuing opportunities for diversification and strategic partnerships, primarily focusing on the Indian market. This includes the automotive and non-automotive sectors such as agriculture, industrial, and defense, leveraging its expertise in casting, machining, forging, and assembly. The company is avoiding international markets for M&A due to degrowth and financial distress of potential targets, preferring the high-growth Indian market.

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