Precision Camshafts Ltd Q3 FY2025-26 Earnings Conference Call
Why It Matters
The profit turnaround and multi‑billion‑rupee order pipeline boost revenue visibility, while the EV slowdown and heavy capex highlight both growth opportunities and strategic risks for investors.
Key Takeaways
- •Net profit 5.96 crore versus 42 crore loss last quarter.
- •New orders worth ~1,500 crore extend order book to 2032.
- •Investing 120 crore in Solapur facility to boost production capacity.
- •EV segment slows; focus shifts to ICE and heavy‑commercial EVs.
- •Solar capacity now 29 MW cuts power costs and carbon footprint.
Summary
Precision Camshafts Ltd reported a dramatic financial turnaround in its Q3 FY2025‑26 earnings call, posting a net profit of 5.96 crore after a 42 crore loss in the prior quarter. Stand‑alone revenue rose 2.17 % to 153 crore, delivering a 14 % EBIT margin, while consolidated figures slipped 9 % to 188 crore. The company attributed the rebound to a 2.44 crore revenue increase and higher ancillary income, offset by rising payroll and operating expenses.
Management highlighted a robust pipeline of new orders valued at roughly 1,500 crore through 2032, including contracts with Maruti Suzuki (12.4 lakh camshafts annually from 2027), Hyundai India (280 k units from 2026), Mahindra (600 k units from FY26‑27), Tata Motors (280 k units per year from FY26‑27), and Renault‑Nissan India (120 k units from FY26‑27). To support this growth, the firm is allocating about 120 crore to a state‑of‑the‑art Solapur manufacturing plant, slated for completion this calendar year, and has expanded its solar power capacity to 29 MW to lower energy costs and carbon emissions.
The call also addressed the company’s EV ambitions. Both the European subsidiary EMOS and the Indian e‑mobility arm reported losses, and the EV conversion business in India has stalled due to regulatory and infrastructure challenges. The firm is now concentrating on a heavy commercial vehicle (HCV) electrification project with a confirmed LOI, expecting delivery within weeks, while maintaining a focus on internal‑combustion engine (ICE) demand that remains strong in India.
Overall, the earnings release signals a return to profitability, reinforced by a sizable order backlog and strategic capex, but also underscores the volatility of the EV segment. Investors should weigh the upside from the expanding camshaft order book against the headwinds in the electric‑vehicle market and the company’s ongoing capital commitments.
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