This article first appeared on GuruFocus .
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Net Loss:INR42.65 crores for Q2 FY '26.
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Exceptional Items:INR49.7 crores due to impairment of investments in MFT GmbH.
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Stand-alone Revenue:INR149 crores with an EBITDA margin of 14%.
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Consolidated Revenue:INR207.9 crores with an EBITDA margin of 10.7%.
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Consolidated PAT Margin:6.33%.
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MEMCO Revenue:INR14.3 crores, up from INR12.7 crores in the previous quarter.
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EMOSS Revenue:INR22 crores, up from INR15.9 crores in the previous quarter.
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MFT Revenue:INR28 crores up to the initiation of insolvency proceedings.
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Investment in New Projects:INR120 crores for new manufacturing plants in Solapur.
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Order Book:Nearly INR1,500 crores over the lifetime of new programs.
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Release Date: December 02, 2025
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 ) has secured new business contracts with major clients like Maruti Suzuki, Hyundai India, Mahindra, and UzAuto, extending their order book up to 2032.
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The company reported a stable stand-alone revenue of INR149 crores with an EBITDA margin of 14%, despite global economic challenges.
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The Indian market remains resilient, providing growth opportunities for Precision Camshafts Ltd ( BOM:539636 ) amidst a global slowdown.
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The company is investing INR120 crores in new projects, including state-of-the-art manufacturing facilities in Solapur, to support future growth.
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Subsidiary MEMCO reported revenue growth, with total income increasing from INR12.7 crores to INR14.3 crores due to new customer orders and increased demand from existing customers.
Negative Points
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Precision Camshafts Ltd ( BOM:539636 ) reported a loss of INR42.65 crores for the quarter, primarily due to an exceptional item related to the impairment of investments in its subsidiary MFT GmbH.
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MFT GmbH, a step-down subsidiary in Germany, has initiated liquidation and insolvency proceedings due to economic slowdown in Europe, impacting the company's financials.
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The company's e-mobility subsidiary, EMOSS in the Netherlands, is not performing as expected, with stable but stagnant growth.
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The Tata Ace conversion business in India has slowed down due to regulatory changes and lower-than-expected demand visibility.
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The consolidated EBITDA margin was lower at 10.7%, and the consolidated PAT margin was 6.33%, reflecting the impact of the exceptional item and challenging market conditions.
Q & A Highlights
Q: Since the subsidiary MFT GmbH has gone into liquidation, will there be more one-time write-offs in subsequent quarters? A: No, this is a complete write-off of our investments into MFT GmbH, and there will be no further write-offs. (Karan Shah, Whole-Time Director - Business Development)
Q: Regarding the new orders from Maruti Suzuki and Mahindra & Mahindra, when will these programs start, and what is the duration of these contracts? A: The duration of the contracts is typically the life of the engine, which is about five to six years. These programs are already in execution mode and will start SOP in calendar year 2026. (Karan Shah, Whole-Time Director - Business Development)
Q: Is the INR100 crores fresh investment specifically for these new programs? A: Yes, the investment is for all these programs. (Karan Shah, Whole-Time Director - Business Development)
Q: Why is the company not pursuing the retrofitting of small commercial vehicles aggressively anymore? A: Demand visibility is not as high as expected, and there have been regulatory changes affecting the retrofit business. However, the heavy commercial vehicle project is ongoing, with deliveries expected soon. (Karan Shah, Whole-Time Director - Business Development)
Q: Given the performance of the Netherlands subsidiary, would it be better to focus on the core camshaft business? A: The Netherlands subsidiary is stable and not taking resources from the parent company. The primary focus remains on growing the camshaft business in India. (Karan Shah, Whole-Time Director - Business Development)
Q: When can we expect a significant increase in camshaft volumes, particularly for machined camshafts? A: Several new projects will go into production next year, leading to increased volumes in the next one to two years, assuming market conditions remain stable. (Karan Shah, Whole-Time Director - Business Development)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
