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    Precision Camshafts Limited

    PRECAM
    Automobile and Auto Components·22 Jun 2026
    Management Summary

    Precision Camshafts Limited reported a strong Q4 FY26 with consolidated revenue growing 9% QoQ to INR205 crores and net profit increasing 38% QoQ to INR13.2 crores. The company secured new business worth INR1,500 crores and made significant progress in its e-mobility segment, delivering the first e-HCV. However, full-year profit was affected by an INR48.8 crore exceptional charge, and commodity price increases pose a short-term margin challenge.

    Highlights

    5

    • Consolidated revenue grew 9% QoQ to INR205 crores, driven by higher revenues and improved operating performance.

    • Q4 FY26 net profit stood at INR13.2 crores, a 38% growth compared to INR9.5 crores in the previous quarter.

    • New business awards from leading OEMs (Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, Renault-Nissan) represent a cumulative lifetime revenue of approximately INR1,500 crores.

    • Successfully developed and delivered the first electric Heavy Commercial Vehicle (e-HCV) to a customer, with commercial deployment expected from April of next year.

    • Commissioned Phase 2 of the solar power project in FY26, bringing total capacity to 29 megawatts and expecting annual savings of INR24 crores.

    Concerns

    3

    • Full year FY26 profit was impacted by an exceptional charge of INR48.8 crores related to the impairment of investment in step-down subsidiary MFT, which is undergoing insolvency proceedings in Germany.

    • European e-mobility market conditions remain challenging, with no significant growth expected for EMOSS in the current or next year.

    • Commodity price increases (aluminum, steel, LPG, cutting tools, oils) due to the Iran war situation are expected to cause short-term margin impact due to time lags in customer compensation.

    Key financials

    Metrics

    6

    Periods

    3

    Headline

    3
    • Consolidated Revenue
      ₹205 Cr
      QoQ+9%
    • Consolidated EBITDA Margin
      15%
    • Consolidated PAT Margin
      4.9%

    Q4

    1
    • Net Profit
      ₹13.2 Cr
      QoQ+38.9%

    FY26

    2
    • Net Profit (after exceptional)
      ₹5.78 Cr
    • Exceptional Charge
      ₹48.8 Cr

    Segment breakdown

    • Stand-alone Business₹162 Cr78.8%
    • MEMCO Subsidiary₹14 Cr6.8%
    • EMOSS (Netherlands) Subsidiary₹29.47 Cr14.3%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 1,500 crores

    as of 2026-03-31

    quantified

    Execution

    executable over next 5-6 years

    "The company has a strong order book from new business awards, providing visibility for the next decade."

    Source:
    Prepared remarks

    Capital allocation

    2
    medium confidence
    CategoryHeadline
    Capex

    ₹100 crores

    Liquidity

    Liquidity disclosed

    The company expects annual savings of approximately INR24 crores from its 29-megawatt solar power project.

    Guidance & targets

    11
    CategoryTargetPriority
    Capacity Expansion
    Investment in foundry, machine shop, automation
    Over INR100 crores
    		High
    Revenue
    Incremental revenue from capex
    More than 2x the capex
    		Medium
    Revenue
    Revenue potential from new capex
    INR200-250 crores
    		High
    Production Start
    Solapur facility production start
    Q1 FY27
    		High
    Capacity
    Solapur facility machined camshafts capacity
    200,000 per month
    		High
    E-mobility
    EMOSS Europe new customer scale-up
    1.5 years
    		Medium
    E-mobility
    e-HCV certification and homologation
    Complete
    		High
    E-mobility
    e-HCV commercial deployment
    Start
    		High
    E-mobility
    e-HCV annualized revenue (one customer MOU)
    INR60-70 crores
    		High
    Capex
    New capex (INR100-120 crores) commissioning
    April, May '27
    		High
    Order Book
    INR1,500 crores order book execution period
    5-6 years
    		High

    e-HCV certification and homologation progress

    this current financial year
    CurrentUndergoing customer evaluation and field trials
    TargetCompletion of certification and homologation

    Why it matters

    Crucial for enabling commercial deployment and validating the company's e-mobility capabilities.

    We expect to complete certification and homologation during this current financial year and upon successful validation plans scale up and commercial deployment from April of next year.

    How to verify

    guidance_and_targets[metric='e-HCV certification and homologation']

    Risks & concerns

    4
    RiskSeverity

    Impairment of MFT investment

    An exceptional charge of INR48.8 crores was recorded due to the impairment of investment in step-down subsidiary MFT, which is undergoing insolvency proceedings in Germany. — Management acknowledged

    high

    Challenging European e-mobility market

    Market conditions in Europe for the e-mobility subsidiary EMOSS remain challenging due to geopolitical factors and subsidies, limiting growth in the near term. — Management acknowledged

    medium

    Commodity price increases

    Increased prices of raw materials (aluminum, steel, LPG, cutting tools, oils) due to the Iran war are expected to impact margins in the short term due to time lags in customer compensation. — Management acknowledged

    medium

    Regulatory and compliance hurdles for EV retrofitting in India

    Past experience with the Tata Ace EV project faced issues with compliance and regulatory frameworks, which could affect the scale-up of the e-HCV retrofit business if not eased. — Management acknowledged

    medium

    Q&A highlights

    7

    “The facility is complete actually from a civil construction point of view. The plant is ready, the utilities also. Now we expect machines to start coming in for the first two projects, which are going to be based in that plant from middle of the year. And we will start the production by quarter 1 of FY27, which is next year and the next -- yes. So that is the plan for the initial project. The total capacity of this plant is 10 lines. So approximately 200,000 machined camshafts per month can be produced from this facility, but we are taking -- obviously, this will be in a phased manner.”

    Provides clear timelines for new capacity coming online and its potential scale, indicating future growth drivers.

    asked by Shravani Salvi

    2 min read5 chapters

    Detailed Narrative

    01

    Robust Q4 FY26 Performance and Full-Year Overview

    Precision Camshafts Limited delivered a strong Q4 FY26, with consolidated revenue growing 9% quarter-on-quarter to INR205 crores. Net profit for the quarter increased by approximately 38% to INR13.2 crores, up from INR9.5 crores in the previous quarter. For the full fiscal year 2026, the company reported a profit of INR5.78 crores, which includes an exceptional charge📎 of INR48.8 crores related to the impairment of investment in its step-down subsidiary, MFT, currently undergoing insolvency proceedings in Germany.

    02

    Strategic Capacity Expansion and Automation Initiatives

    To support future growth, PCL plans to invest over INR100 crores in capacity expansion over the next three years, focusing on foundry, machine shop, advanced manufacturing technologies, and automation. These investments are projected to generate incremental revenues of more than 2x the capital expenditure. The new Solapur manufacturing facility, designed for 10 lines and approximately 200,000 machined camshafts per month, is civilly complete, with production expected to commence in Q1 FY27.

    03

    E-mobility Progress in India and Europe

    The company has successfully developed and delivered its first electric Heavy Commercial Vehicle (e-HCV) in India, which is currently undergoing customer evaluation. Certification and commercial deployment are targeted for this financial year and April of next year, respectively, with an MOU for INR60-70 crores annualized revenue from one customer. In Europe, the e-mobility subsidiary EMOSS reported Q4 revenue of INR29.47 crores, up from INR23.9 crores, despite challenging market conditions, with scale-up from new customers anticipated in 1.5 years.

    04

    New Business Wins and Market Outlook

    PCL secured new business awards from major OEMs including Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, and Renault-Nissan, contributing approximately INR1,500 crores in cumulative lifetime revenue beyond the existing order book. This order book is expected to be executed over 5-6 years. The company maintains an optimistic outlook, citing strong demand visibility across India, North America, and South America, with continued opportunities for assembled camshafts and precision engineered products.

    05

    Operational Efficiency and Renewable Energy

    The company's current capacity utilization stands at over 80-85% in the foundry and 90% in the machine shop, with ongoing debottlenecking efforts adding 10-20% capacity. PCL also commissioned the second phase of its solar power project in FY26, bringing total capacity to 29 megawatts. This initiative is expected to generate annual savings of approximately INR24 crores, enhancing sustainability and reducing dependence on conventional power sources.

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