This article first appeared on GuruFocus .
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Total Income (Standalone):INR173 crore, up 6.6% quarter on quarter.
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Net Profit (Standalone):INR14.88 crore, up 12.5% from INR13.2 crore in the previous quarter.
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EBITDA Margin (Standalone):13%.
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PAT Margin (Standalone):9%.
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Total Income (Consolidated):INR200.8 crore, down 2.4% quarter on quarter.
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EBITDA Margin (Consolidated):Approximately 10%.
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Profit After Tax (Consolidated):Approximately 4.2%.
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MEMCO Revenue:INR14.1 crore during Q1.
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EMOSS Revenue:INR13.8 crore during the quarter, compared to INR29 crore in the previous quarter.
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Release Date: August 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Precision Camshafts Ltd ( BOM:539636 ) reported a 6.6% quarter-on-quarter increase in total income to INR173 crore, with net profit up 12.5% to INR14.88 crore.
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Several new production programs with key customers like Mahindra, Tata Motors, and Maruti Suzuki commenced during the quarter, with volumes expected to ramp up.
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The company has a cumulative order book of approximately INR1,500 crore, spread over four to five years, providing strong revenue visibility.
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The standalone Indian business is entering a period of significant opportunity, supported by strong growth in the Indian passenger-vehicle market and customer investments.
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The company is actively exploring acquisition opportunities in India to expand into new products, markets, and customers, indicating a growth-oriented strategy.
Negative Points
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The EMOSS subsidiary in the Netherlands saw a significant revenue decline to INR13.8 crore from INR29 crore in the previous quarter, with a cautious outlook due to challenging European electric commercial-vehicle market conditions.
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The broader European automotive industry is undergoing restructuring, with OEMs under pressure to reduce costs and rationalize investments, leading to slower customer decision-making in the EV segment.
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The company faces headwinds in its EMOSS business, and there is uncertainty about its future, with management unable to rule out potential winding up.
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The Middle East war caused disruptions, impacting overall performance despite the positive results.
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Consolidated revenue decreased by 2.4% to INR200.8 crore, with EBITDA margin at 10% and PAT margin at 4.2%, reflecting weaker performance from subsidiaries.
Q & A Highlights
Q: What is the current outstanding order book size for Precision Camshafts? A: Karan Shah, Whole-Time Director - Business Development, disclosed a cumulative order book of approximately INR1,500 crore, which is over and above the existing businesses from existing and new customers. This order book is not annualized and will be spread over four to five years.
Q: Is the management considering winding up the European subsidiary EMOSS, similar to a previous subsidiary? A: Karan Shah stated it is very hard to say right now due to dynamic market conditions and unprecedented situations in Europe over the last eight to nine months. While the business faces tremendous headwinds, the company is trying its best to sustain it as a standalone business without requiring support from India. A final decision is not possible at this point.
Q: Will the company focus only on the camshafts business, or are there other segments being explored? A: Karan Shah clarified that the focus is not necessarily only on camshafts. The company is actively looking at acquisition opportunities within India to grow into new products, markets, and customers. The primary focus remains on the Indian standalone business and the subsidiary MEMCO, through which several new products are being developed.
Q: Can the company improve the quality of its corporate presentation by incorporating more details? A: Karan Shah appreciated the feedback and confirmed that the management will take it back and see what additional information can be added in the next quarter's presentation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
