Precision Camshafts reports Q2 loss due to German subsidiary struggles

Precision Camshafts Limited reported a loss of INR42.65 crores for Q2 FY26, a decline from a profit of INR25.6 crores in the previous quarter and INR18.3 crores in the corresponding period of 2024. This deficit was mainly driven by an exceptional item of INR49.7 crores, attributed to the impairment of investments in its step-down subsidiary, MFT GmbH in Germany. MFT has initiated liquidation and insolvency proceedings due to challenging European economic conditions, leading to acute liquidity constraints.

Despite the consolidated loss, the standalone performance of PCL India remained stable, with standalone revenue of INR149 crores and an EBITDA margin of 14%. The company secured new business, including orders from Maruti Suzuki, Hyundai India, and Mahindra, amounting to nearly INR1,500 crores over the lifetime of these programs. PCL is investing approximately INR120 crores for these new projects, including new manufacturing plants in Solapur, with production expected to commence in calendar year 2026.

The company's e-mobility subsidiary, EMOSS in the Netherlands, generated INR22 crores in revenue for the quarter. However, PCL has scaled back its Tata Ace conversion business in India due to regulatory changes and reduced visibility, while continuing to develop electric heavy commercial vehicles, with first deliveries expected within the current financial year.