Precision Camshafts subsidiary faces insolvency amid European slowdown

Precision Camshafts Limited (PCL) has initiated insolvency proceedings for its German step-down wholly owned subsidiary, MFT Motoren und Fahrzeugtechnik GmbH (MFT), held through PCL (International) Holding B.V., Netherlands. This decision, approved by a circular resolution on August 29, 2025, follows MFT's persistent financial difficulties, exacerbated by an economic slowdown in Europe and significantly reduced customer call-offs, leading to acute liquidity constraints.

MFT contributed INR 111.45 Crores, representing 12.92% of the consolidated turnover for the fiscal year 2024-25. However, the subsidiary has negatively impacted the net worth of PCL (International) Holding B.V. An independent insolvency administrator will be appointed by the court to oversee the necessary proceedings.

PCL has committed to providing further updates on this development as required under SEBI Listing Regulations. The company assures that the transaction does not fall under related party transactions.