Precision Camshafts rides ₹1,500 cr order book and EV breakthrough
Q4 profit surged 38% QoQ to ₹13.2 cr; EV platform with MOU for ₹60-70 cr annual revenue; raw material cost surge creates near-term margin pressure.
What's new
- Q4 standalone PAT ₹13.2 cr, up 38% QoQ on revenue of ₹162 cr.
- Order book hits ₹1,500 cr cumulative lifetime revenue from Maruti, Hyundai, M&M, Tata, Renault-Nissan.
- Electric HCV platform delivered first vehicle, MOU signed for ₹60-70 cr annualized revenue.
- Solapur facility ready, production starts Q1 FY27; ₹100-120 cr capex expected 1.5-2X revenue upside.
Themes from the call
Demand
₹1,500 cr order book from multiple OEMs extends visibility 5-6 years, with new programs starting at different dates.
Margins
EBITDA margin at 15%; raw material inflation (aluminum +50%) with 1-2 quarter pass-through lag creates temporary pressure, especially in exports (40-50% of revenue).
Capital allocation
₹100-120 cr capex over 3 years for Solapur and debottlenecking; solar capacity at 29 MW saves ₹24 cr annually.
Guidance watch
- FY27 production start at Solapur on two customer programs.
- EV platform homologation and certification targeted in FY27, commercial deployment April 2025.
- Debottlenecking to add 10-20% capacity phased through FY27.
Risk flags
- Raw material cost surge not quantified; pass-through lag of 1-2 quarters may compress near-term margins.
- EMAP subsidiary impaired by ₹48.8 cr; Europe macro remains volatile.
- EV retrofit model faced earlier regulatory hurdles (Tata Ace program abandoned).
Key quotes
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"We have a MOU already signed where we are looking at an order book of 60 to 70 crore rupees annualized revenue... just from one customer and one product."
— Karan Shah, management (Q&A)
The brief
Precision Camshafts delivered a clean Q4: standalone PAT of ₹13.2 cr, up 38% QoQ, on revenue of ₹162 cr. EBITDA margin held at 15%. The headline is the order book: ₹1,500 cr cumulative lifetime revenue from Maruti Suzuki, Hyundai, M&M, Tata Motors, Renault-Nissan, and international customers. That pipeline extends visibility 5-6 years and includes a shift toward higher-value assembled crankshafts, which carry better margins than foundry-only sales.
The bigger strategic step is the electric HCV platform. The first vehicle is in field trials, and a signed MOU points to ₹60-70 cr annualized revenue from one customer. The pitch: a retrofit solution costing 70-75% of a new electric truck, with battery range customisation that OEMs cannot match. The target is niche (public services, infrastructure, utilities) not general logistics. Homologation is expected in FY27, with commercial deployment from April 2025. This is a real revenue line, not a lab project.
The caution is raw material inflation. Aluminum is up 50% in 2-3 months; steel, LPG, and cutting tools are elevated. OEM contracts have pass-through clauses, but the lag is 1-2 quarters. That will pressure margins near-term, especially in the export segment which accounts for 40-50% of revenue. Management did not quantify the hit.
Capacity is coming online. The Solapur facility is structurally ready, production starts in Q1 FY27 on two programs. A ₹100-120 cr capex spread over 3 years is expected to generate 1.5-2X incremental annualised revenue at peak. Current utilisation of 80-85% (foundry) and 90% (machine shop) leaves headroom, and debottlenecking will add 10-20% more through FY27.
Europe remains a drag: EMOS is stable but impaired by a ₹48.8 cr charge on EMAP. Menco is undergoing modernisation. The core story is India driven (domestic OEM wins, EV platform validation, and capacity that aligns with demand). The margin question is temporary, not structural.
Precision Camshafts has the orders and the EV edge. Raw material headwinds are real but short-lived if pass-through works.