Precision Camshafts locks in ₹1,500 cr order book, but faces 50% aluminum cost spike
Q4 concall reveals EV heavy-commercial vehicle MOU worth ₹60-70 cr annualised; ₹100-120 cr capex planned. Management expects margin normalization in 2-3 quarters.
— 2 earlier stories on Precision Camshafts Ltd. →What's new
- Cumulative order book reaches ₹1,500 cr from Maruti, Hyundai, Tata.
- First EV heavy-commercial vehicle delivered; MOU for ₹60-70 cr annualised revenue from single customer.
- Plans ₹100-120 cr capex over three years; Solapur facility ramping in Q1 FY27.
- Aluminum up 50%, pressuring near-term margins; expect normalization in 2-3 quarters.
Why this matters
The order book locks in long-term revenue visibility, but raw material inflation is squeezing margins now. The ₹100-120 cr capex (about 8% of market cap) signals confidence in EV shift, but execution and margin recovery are critical near-term tests.
What we're watching
- Margin trajectory over the next two quarters; aluminum costs remain elevated.
- Conversion of EV MOU into firm orders and subsequent wins.
- Capex deployment at Solapur and impact on balance sheet (debt/equity currently 0.12).
The full read
Precision Camshafts is building a decade-long runway. Its cumulative order book crossed ₹1,500 crore from top OEMs including Maruti, Hyundai, and Tata. In Q4, the company delivered its first electric heavy-commercial vehicle and signed an MOU worth ₹60-70 crore in annualised revenue from a single customer on that platform. But the near-term story is cost, not growth. Aluminum is up 50%, squeezing margins. Management expects normalization in 2-3 quarters, but that's a forecast, not a fact. Meanwhile, ₹100-120 crore in capex over three years will test balance sheet discipline. Solapur facility ramps in Q1 FY27. The orders are real. The margin call is open.
Questions answered
- What is the scale of the ₹1,500 crore order book relative to revenue?
- It's about 1.9 times trailing annual revenue (₹801 cr based on Mar 2026 quarter run-rate), providing multi-year visibility.
- How significant is the ₹60-70 crore annualised MOU for the EV platform?
- It represents roughly 8% of current annual revenue run-rate. If converted into a long-term contract, it could add meaningful growth, but it's still an MOU.
- What is causing the margin pressure, and how long will it last?
- Aluminum prices have surged 50%, impacting input costs. Management expects normalization within 2-3 quarters, likely through pass-through or hedging.
- How will the ₹100-120 crore capex be funded?
- The company has low debt (0.12 debt/equity) and generated ₹10 cr net profit in the Mar 2026 quarter. The capex may be funded through internal accruals and some debt, but details were not disclosed.
- Which OEMs are part of the order book?
- Major OEMs include Maruti, Hyundai, and Tata. These are key customers for the traditional camshaft business and potentially for EV components.
Precision Camshafts Ltd.
Latest quarter · Mar 2026
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Story so far
All notes on PRECAM →- 22 Jun 2026 · 12:44 PM IST Precision Camshafts locks in ₹1,500 cr order book, but faces 50% aluminum cost spike
- 1d ago Precision Camshafts transcript confirms ₹1,500 cr order book, EV platform live
- 34d ago Precision Camshafts swings to a Q4 standalone profit