Precision Camshafts posts Rs 64.01 crore quarterly loss

Precision Camshafts Limited reported a standalone net loss of Rs 64.01 crore for the quarter ended September 30, 2026, after a reported Rs 75.66 crore net exceptional charge outweighed Rs 16.96 crore of profit before exceptional items and tax. The exceptional-items note lists provisions on exposure to PCL (International) Holding B.V. as the principal items.

Why did Precision Camshafts report a quarterly loss?

Precision Camshafts reported the Rs 64.01 crore loss because it booked a Rs 75.66 crore net exceptional charge in the September 2026 quarter. The charge moved profit before tax from a positive Rs 16.96 crore before exceptional items to a loss before tax of Rs 58.70 crore, followed by total tax expense of Rs 5.31 crore.

The September result reversed a Rs 14.88 crore profit in the preceding June 2026 quarter, when exceptional items provided a Rs 3.97 crore net gain. It was also wider than the Rs 42.65 crore loss in the September 2025 quarter, when the company recorded a Rs 49.76 crore net exceptional charge principally associated with its German step-down subsidiary.

Basic and diluted earnings per share were both a loss of Rs 6.74 for the September 2026 quarter, compared with earnings of Rs 1.57 in June 2026 and a loss of Rs 4.49 a year earlier. Total comprehensive loss was Rs 63.83 crore after Rs 18.45 lakh of other comprehensive income from remeasurement gains on defined-benefit plans.

How did Precision Camshafts' underlying operations change?

Precision Camshafts' underlying quarterly operations increased, with revenue from operations rising to Rs 190.20 crore from Rs 160.47 crore in June 2026 and Rs 140.47 crore in September 2025. Profit before exceptional items and tax rose to Rs 16.96 crore from Rs 15.05 crore sequentially and Rs 12.11 crore a year earlier.

Total income reached Rs 194.96 crore in the September quarter, including Rs 4.77 crore of other income, against Rs 173.26 crore in the June quarter. Total expenses increased to Rs 178.01 crore from Rs 158.22 crore, while raw-material consumption rose to Rs 61.03 crore from Rs 54.10 crore and employee-benefit expense increased to Rs 25.03 crore from Rs 22.18 crore.

For the half year ended September 30, 2026, revenue from operations was Rs 350.67 crore, compared with Rs 277.17 crore in the corresponding 2025 half year. The six-month standalone result was a Rs 49.13 crore loss, compared with a Rs 17.02 crore loss a year earlier, as net exceptional charges increased to Rs 71.69 crore from Rs 49.76 crore.

Precision Camshafts manufactures auto components, including camshafts and other products, and management identifies the business as one operating segment. The filing therefore does not provide revenue or profit splits by product line, customer group or geography for the half year ended September 30, 2026.

What comprises Precision Camshafts' Dutch subsidiary provisions?

Precision Camshafts' September 2026 exceptional-items note lists a Rs 14.85 crore impairment of its investment in PCL (International) Holding B.V., a Rs 64.68 crore expected credit loss provision on a loan to that subsidiary, and Rs 33.28 lakh of impairment on accrued interest on that loan. These three reported provisions total Rs 79.86 crore before the customer-compensation item shown in the same table.

The company also recorded Rs 1.21 crore of compensation received from a customer during the quarter. The exceptional-items table reports a Rs 75.66 crore net exceptional loss for the September 2026 quarter, compared with a Rs 3.97 crore net exceptional gain in the June 2026 quarter.

Management said it reassessed the recoverable amount of its investment in PCL (International) Holding B.V. considering the prevailing global business environment, latest business developments and other factors affecting the business outlook and recoverability of the underlying exposure. It separately reassessed the loan, including accrued interest, and recognised an expected credit loss provision under Indian Accounting Standard 109, Financial Instruments.

The September 2025 comparison concerned a different overseas entity, MFT Motoren und Fahrzeugtechnik GmbH in Germany. That step-down subsidiary entered insolvency and liquidation proceedings, with a provisional liquidator appointed on September 8, 2025; Precision Camshafts then recognised Rs 57.76 crore of impairment, representing the carrying value of the related investment, loan and accrued interest.

How did Precision Camshafts' balance sheet and cash flow change?

Precision Camshafts' total equity declined to Rs 828.32 crore at September 30, 2026 from Rs 886.58 crore at March 31, 2026. Total liabilities increased to Rs 244.71 crore from Rs 168.98 crore, while current borrowings rose to Rs 62.41 crore from Rs 40.35 crore.

Non-current financial investments were Rs 44.87 crore at September 30, 2026, down from Rs 59.72 crore at the March year-end, while the company recorded a Rs 14.85 crore investment impairment in the September quarter. Property, plant and equipment increased to Rs 343.70 crore from Rs 260.70 crore, whereas capital work-in-progress declined to Rs 28.80 crore from Rs 64.73 crore.

Net cash generated from operating activities was Rs 53.84 crore in the half year ended September 30, 2026, versus Rs 56.81 crore in the prior-year period. Precision Camshafts spent Rs 67.87 crore on property, plant and equipment, compared with Rs 38.94 crore a year earlier, resulting in investing cash outflow of Rs 67.49 crore.

Cash and cash equivalents fell by Rs 3.08 crore during the six months to Rs 16.54 crore at September 30, 2026. This was a smaller decline than the Rs 12.90 crore reduction in the comparable 2025 half year, when period-end cash and cash equivalents were Rs 13.36 crore; net short-term borrowings added Rs 22.06 crore in the latest half year.

Conclusion

Precision Camshafts' September-quarter standalone loss resulted from the reassessment of parent-level exposure to PCL (International) Holding B.V. rather than a reduction in reported operating revenue. Revenue rose from Rs 140.47 crore a year earlier to Rs 190.20 crore, and pre-exceptional profit before tax increased to Rs 16.96 crore, but the reported Rs 75.66 crore net exceptional charge determined the final Rs 64.01 crore loss.

The next disclosed matter to watch is management's assessment of recoverability for the Dutch subsidiary exposure following the September provisions. Precision Camshafts also said it continues to monitor finalisation of state rules and government clarifications on the new labour codes after recording Rs 3.10 crore of related employee-benefit expense in the year ended March 31, 2026.