Financial Performance Overview
Precision Camshafts Limited reported standalone revenue of ₹577.54 crore and profit after tax of ₹5.78 crore for FY 2025-26, compared to ₹612.00 crore and ₹7.35 crore respectively in the previous year. Consolidated performance showed revenue of ₹772.87 crore with PAT of ₹51.24 crore. The company declared a final dividend of ₹1 per equity share, subject to shareholder approval at the 34th Annual General Meeting scheduled for July 30, 2026.
Auditor Qualifications and Compliance Issues
The independent auditor issued an unqualified opinion on the financial statements but reported several material qualifications in Annexure B. Key issues included excess director remuneration of ₹131.88 lakhs beyond statutory limits, discrepancies in quarterly bank statements filed with Bank of India and Bank of Baroda ranging from ₹(3,662.34) lakhs to ₹3,299.35 lakhs, and delayed interest payments from subsidiary PCL International Holdings B.V. The company is in process of obtaining shareholder approval for the excess remuneration via special resolution.
Subsidiary Performance and Impairment Charges
German subsidiary MFT Motoren und Fahrzeugtechnik GmbH filed for insolvency and liquidation proceedings in September 2025, resulting in a full impairment charge of ₹48.89 crore. The deconsolidation of MFT resulted in a gain of ₹935.04 lakhs and foreign currency translation reserve reversal of ₹754.40 lakhs. Other subsidiaries showed mixed performance: MEMCO Engineering reported revenue of ₹53.10 crore with net loss of ₹0.68 crore, while PCL International Holdings reported revenue of ₹142.23 crore with net loss of ₹11.49 crore.
Operational and Strategic Developments
The company commissioned a second solar plant of 14MWp in December 2025, bringing total solar capacity to 29MWp with renewable energy contributing 44% of total electricity consumption. Business expansion included commencement of assembled camshaft manufacturing and securing major orders from Maruti Suzuki, Hyundai, Mahindra, and UzAuto. The company initiated a ₹120 crore capacity expansion at its Solapur facility.
Contingent Liabilities and Disputed Dues
The group disclosed contingent liabilities of ₹1,981.41 lakhs across various tax and regulatory disputes, including additional stamp duty demand of ₹31.79 lakhs (2007-08), PF liability demand of ₹24.23 lakhs (2003-06), income tax demand of ₹1,701.16 lakhs (2013-14), and GST demand of ₹200.62 lakhs (2017-18). Corporate guarantees of ₹317.50 lakhs were provided on behalf of subsidiary Memco Engineering.
Capital Structure and Dividend Information
The authorized share capital remained at ₹100.00 crore with issued, subscribed and paid-up capital of ₹94.99 crore. The dividend payout for FY26 would amount to ₹9.50 crore if approved, with record date closure from July 24-30, 2026 and payment scheduled on or before August 28, 2026. The company maintained a low debt-to-equity ratio of 0.05x.
Sustainability and Governance Initiatives
The annual report highlighted sustainability metrics including electricity generation of 76,487.74 GJ, water consumption of 81,988.42 KL, and GHG emissions of 38,551.09 MTCO2e. CSR expenditure amounted to ₹1.72 crore benefiting 1.38 million cumulative beneficiaries. The board comprised 9 directors including 4 female directors, with 4 board meetings held during the year and all committees constituted as per regulatory requirements.