Precision Camshafts Limited Q2 FY26 Concall Decoded: ₹43-cr loss, Europe implodes, India quietly builds a ₹1,500-cr future
1. Opening Hook
Just when investors were getting comfortable, Precision Camshafts dropped a ₹42.6 crore loss on the table and calmly said, “don’t worry, it’s Europe.” Yes, Germany burned. Yes, the P&L bled. And no, management didn’t panic—because this was a controlled demolition, not a business collapse.
The Q2 FY26 concall was less about quarter-on-quarter numbers and more about drawing a thick red line under Europe and circling India in green ink. One subsidiary went into insolvency, impairments were taken in full, and management declared: no more surprises here.
Meanwhile, India operations stayed profitable, order wins stacked up till 2032, and a ₹1,500-crore lifetime order book quietly stole the show. If you stopped reading at the loss headline, you missed the real story. This concall was about resetting the map, not shrinking the business.
2. At a Glance
Reported loss ₹42.6 cr – Germany exited, pain booked upfront.
Exceptional item ₹49.7 cr – One-time impairment, no sequels promised.
Standalone India EBITDA ~14% – Core business stayed alive and kicking.
Order book ~₹1,500 cr – Engines will run till 2032.
Capex ₹120 cr planned – Betting on India, not Europe.
3. Management’s Key Commentary
“The loss is driven by impairment of our German subsidiary, MFT GmbH.” (Translation: Europe hurt us once, not twice 😏)
“This is a complete write-off; no further losses from MFT.” (Band-aid ripped off in one go.)
“Indian operations remained stable despite global slowdown.” (Domestic auto cycle > European recession.)
“We have secured ₹1,500 crore of lifetime business till 2032.” (Visibility that quarterly traders ignore.)
“Major programs go into SOP in CY26.” (Volumes are loading… patiently ⏳)
“EV small commercial vehicle retrofit is slowed.” (Reality check, not hype.)
