PRECISION CAMSHAFTS LTD – Q1 FY27 CONCALL HIGHLIGHTS
#Q1FY27
Q1FY27 Financial Performance
- Standalone total income stood at ₹173 Cr, up 6.6% QoQ.
- Standalone PAT stood at ₹14.88 Cr, up 12.5% QoQ.
- Standalone EBITDA margin stood at 13%.
- Standalone PAT margin stood at 9%.
- Consolidated revenue stood at ₹200.8 Cr, down 2.4% QoQ.
- Consolidated EBITDA margin stood at around 10%.
- Consolidated PAT margin stood at around 4.2%.
- Performance was delivered despite disruptions from the Middle East conflict.
Indian PV Business
- Indian passenger vehicle market continues to show strong growth.
- New programs with Mahindra, Tata Motors and Maruti Suzuki started production in Q1.
- These programs have moved from development/validation into commercial production.
- Volumes are expected to progressively ramp up with customer production.
- Several additional programs are expected to start production in coming quarters.
- New orders have been secured from key customers.
- Customers continue investing in capacity, new vehicle platforms and localization.
- PCL is investing ahead in capacity, automation and technology.
Order Book & Pipeline
- Cumulative order book is approximately ₹1,500 Cr.
- Order book is over and above existing business from existing and new customers.
- Order book is not annualized and is spread over 4–5 years.
- Company continues to work on additional opportunities.
- New program launches should provide progressive volume ramp-up.
- Management remains confident about the medium- to long-term standalone growth outlook.
Capacity & Investment
- Capacity readiness remains a key focus area.
- Investments are being made ahead of customer requirements.
- Automation and technology upgrades are being undertaken.
- Focus is on ensuring adequate capacity for new program ramp-ups.
- Management expects strong customer demand to support capacity utilization.
- Capital allocation will remain disciplined and linked to growth opportunities.
Memco Business
- Memco generated revenue of around ₹14 Cr in Q1FY27.
- Business continues strengthening relationships with key customers.
- Major customers include Bosch, Delphi and Endress+Hauser.
- Memco is also pursuing several new products.
- Management remains focused on expanding the Indian business through Memco.
eMOS Europe
- eMOS Netherlands revenue stood at ₹13.8 Cr vs ₹29 Cr QoQ.
- European e-mobility business has experienced a significant slowdown.
- Management is taking a cautious approach toward near-term outlook.
- Electrification of European passenger cars continues to progress.
- Electric commercial vehicles remain considerably more challenging.
- Electrically chargeable trucks represented only 4.8% of new EU truck registrations in H1 2026.
- Reduced subsidies and insufficient enabling conditions are affecting EV adoption.
- European OEMs are under pressure to improve competitiveness and reduce costs.
- Customer decision-making has slowed and program visibility has reduced.
- Focus is on protecting the business and carefully managing costs and investments.
- Future decisions will depend on customer traction, cash requirements and returns.
- Management has not indicated any immediate decision to wind up eMOS.
e-Mobility India
- Indian e-mobility business continues to progress.
- Electric heavy commercial vehicle platform has been developed.
- Vehicle has been delivered to a customer.
- Customer evaluation and field trials are currently underway.
- Management remains positive about the long-term opportunity.
- Commercial scale-up will depend on successful customer evaluation.
Diversification Strategy
- Company does not intend to remain limited only to camshafts.
- New product and market opportunities are actively being evaluated.
- Focus remains primarily on Indian operations.
- Memco is being used to develop several new products.
- Management is actively evaluating acquisition opportunities within India.
- Acquisitions could provide entry into new products, markets and customers.
- Strategy is to strengthen and scale the core Indian business while selectively diversifying.
Customer Programs
- Several new customer programs entered commercial production in Q1.
- Mahindra, Tata Motors and Maruti Suzuki programs are already underway.
- Further programs are expected to commence in upcoming quarters.
- Customer investments in localization provide opportunities for PCL.
- Strong OEM engagement supports medium-term visibility.
- Company is focused on deepening relationships with key customers.
Management Strategy
- Core Indian business remains the highest-conviction growth opportunity.
- Management intends to invest selectively in capacity and automation.
- New program execution remains a major priority.
- Cost and capital discipline will remain important.
- Company will not pursue growth merely for the sake of growth.
- Focus remains on Indian growth, selective acquisitions and profitable execution.
KEY TAKEAWAY
- ₹1,500 Cr order book; Indian PV growth drives the core opportunity.
August 31, 2026 990 2
