Precision Camshafts Q2 profit falls despite revenue rise

Precision Camshafts Limited reported consolidated profit of Rs 12.9253 crore for the quarter ended September 30, 2026, compared with Rs 13.1626 crore a year earlier, as revenue from operations increased to Rs 208.5025 crore from Rs 198.1827 crore but exceptional income declined. Half-year profit fell to Rs 21.3722 crore from Rs 31.9789 crore.

What were Precision Camshafts' September-quarter results?

Precision Camshafts reported September-quarter total income of Rs 221.4246 crore, up from Rs 207.9767 crore in the quarter ended September 30, 2025. Revenue from operations rose by Rs 10.3198 crore year on year, while other income increased to Rs 12.9221 crore from Rs 9.794 crore.

Precision Camshafts' profit before exceptional items and tax reached Rs 14.1008 crore, compared with Rs 5.7472 crore a year earlier. Net exceptional income fell to Rs 4.2086 crore from Rs 9.4969 crore, leaving profit before tax only Rs 0.0653 crore above the prior-year quarter. Tax expense increased to Rs 5.3841 crore from Rs 5.0815 crore.

Why did Precision Camshafts' profit decline despite higher revenue?

Precision Camshafts' reported profit declined because the September 2025 quarter included Rs 9.4969 crore of net exceptional income, compared with Rs 4.2086 crore in September 2026. The current-quarter exceptional amount was compensation received from a customer, while the prior-year amount included Rs 7.6905 crore of customer compensation, a Rs 9.3504 crore gain on deconsolidation and a Rs 7.544 crore foreign-currency translation reserve reversal.

Total expenses increased to Rs 207.5238 crore in the September 2026 quarter from Rs 199.2295 crore a year earlier. Raw-material consumption increased to Rs 72.268 crore from Rs 68.8299 crore and other expenses rose to Rs 88.513 crore from Rs 77.3668 crore. Employee-benefit expense declined to Rs 35.2885 crore from Rs 37.2602 crore, while depreciation and amortisation decreased to Rs 10.3489 crore from Rs 12.2531 crore.

Compared with the June 2026 quarter, Precision Camshafts' revenue rose from Rs 187.8949 crore to Rs 208.5025 crore and profit increased from Rs 8.4469 crore to Rs 12.9253 crore. Profit before tax increased from Rs 12.6869 crore in June 2026, while exceptional income rose from Rs 3.9702 crore to Rs 4.2086 crore.

How did Precision Camshafts perform in the first half?

Precision Camshafts recorded half-year revenue from operations of Rs 396.3974 crore for the period ended September 30, 2026, compared with Rs 393.186 crore a year earlier. Total income nevertheless declined to Rs 422.822 crore from Rs 430.3687 crore because other income fell to Rs 26.4248 crore from Rs 37.1827 crore.

Precision Camshafts' half-year profit before tax decreased by Rs 14.4654 crore, while net exceptional income was Rs 8.1788 crore against Rs 9.4969 crore in the prior-year period. The company said it manufactures auto components and that its chief operating decision maker reviews operations as one operating segment, so the filing provides no separate product, customer or geographic revenue figures for the Rs 396.3974 crore half-year revenue base.

What changed in Precision Camshafts' cash flow and working capital?

Precision Camshafts generated operating cash flow of Rs 41.1979 crore in the half year ended September 30, 2026, down from Rs 64.097 crore a year earlier. Trade and other receivables and prepayments used Rs 39.0325 crore of cash, compared with a Rs 37.8532 crore source of cash in the corresponding 2025 period.

Cash generated from operations fell to Rs 47.6114 crore from Rs 79.9794 crore, despite trade and other payables generating Rs 45.1306 crore of cash versus an outflow of Rs 10.2552 crore a year earlier. Inventories released Rs 8.0919 crore of cash, including a Rs 8.1647 crore reversal of inventory provision, while income tax paid was Rs 6.4135 crore against Rs 15.8824 crore.

Investing cash outflow increased to Rs 70.104 crore from Rs 49.2832 crore as purchases of property, plant and equipment rose to Rs 70.4938 crore from Rs 48.9671 crore. Financing cash flow turned positive at Rs 8.5293 crore from an outflow of Rs 34.7581 crore, with net borrowing proceeds of Rs 22.8138 crore replacing a Rs 19.4413 crore net repayment in the previous half year.

How did Precision Camshafts' balance sheet change by September?

Precision Camshafts' total assets rose to Rs 1,132.829 crore at September 30, 2026 from Rs 1,049.533 crore at March 31, 2026. Property, plant and equipment increased to Rs 369.7243 crore from Rs 289.9174 crore, while capital work-in-progress declined to Rs 28.804 crore from Rs 64.8929 crore.

Trade receivables increased to Rs 158.8942 crore from Rs 125.3158 crore, alongside the cash outflow recorded under receivables and prepayments. Cash and cash equivalents declined to Rs 19.4033 crore from Rs 38.8788 crore after a Rs 20.3768 crore net decrease in cash and cash equivalents during the half year. Current borrowings rose to Rs 66.3434 crore from Rs 43.5296 crore.

Total equity increased to Rs 848.8193 crore from Rs 835.6192 crore, while total liabilities rose to Rs 284.0097 crore from Rs 213.9138 crore. Current liabilities increased to Rs 241.7297 crore from Rs 173.9655 crore, including trade payables to creditors other than micro enterprises and small enterprises of Rs 101.2932 crore, compared with Rs 68.2703 crore at March 31, 2026.

What did Precision Camshafts disclose about the review, dividend and labour codes?

Precision Camshafts' board approved the unaudited September-quarter and half-year results on November 6, 2026, after Audit Committee review. MSK A & Associates LLP issued an unmodified limited-review conclusion under Regulation 33 of the Securities and Exchange Board of India listing regulations, and stated that a review is substantially narrower in scope than an audit.

Precision Camshafts paid a final dividend of Rs 1 per equity share during the September 2026 quarter after shareholder approval at the July 30, 2026 annual general meeting. The company said it continues to monitor state rules and government clarifications on four Labour Codes notified on November 21, 2025, following Rs 3.1899 crore of incremental employee-benefit expense recognised in the year ended March 31, 2026.

Conclusion

Precision Camshafts delivered a year-on-year increase of Rs 10.3198 crore in September-quarter revenue and higher profit before exceptional items and tax, but lower exceptional income and higher tax expense left reported quarterly profit below the prior-year figure. Across the first half, the modest revenue increase was accompanied by lower other income, lower profit before tax and a Rs 22.8991 crore reduction in operating cash flow.

The next results may clarify the effects of Rs 70.4938 crore of half-year purchases of property, plant and equipment and the movement in Rs 158.8942 crore of trade receivables. Precision Camshafts has also said it will provide accounting effects, if needed, as state rules and government clarifications concerning the Labour Codes are finalised.