Financial Performance

Standalone Q4 FY26:

  • Net profit: INR 13.2 crores (up 38% from INR 9.5 crores in previous quarter)
  • Revenue: Increased by INR 14.5 crores quarter-on-quarter
  • EBITDA margin: 15%
  • PAT margin: 8%
  • Revenue reached INR 162 crores (6.5% QoQ growth)

Consolidated Q4 FY26:

  • Revenue: INR 205 crores (9% QoQ growth)
  • EBITDA: INR 30 crores (15% margin)
  • PAT margin: 4.9%

Full Year FY26:

  • Profit: INR 5.78 crores (includes exceptional charge of INR 48.8 crores for impairment of investment in step-down subsidiary MFT, which is undergoing insolvency proceedings in Germany)

Operational Highlights

Order Book & Business Development:

  • Secured multiple new business awards from Maruti Suzuki, Hyundai, Mahindra & Mahindra, Tata Motors, Renault-Nissan and international customers
  • Cumulative lifetime revenue of new orders: approximately INR 1,500 crores over existing order book
  • Business visibility extends well into next decade

Capacity Expansion:

  • Planning to invest over INR 100 crores in foundry and machine shop capacity expansion over next 3 years
  • Investments in advanced manufacturing technologies and automation
  • Expected to support incremental revenues of more than 2x the capex amount
  • Current capacity utilization: 80-85% across foundry and machine shop

Solapur Facility:

  • Civil construction complete, utilities ready
  • Machines expected to arrive from middle of 2026
  • Production start expected in Q1 FY27 (April 2027)
  • Total capacity: 10 lines capable of producing 200,000 machined camshafts per month (phased implementation)

Automation Initiatives:

  • Significant automation projects across foundry and machine shop
  • Expected to generate cost savings while improving quality, productivity and efficiency

Subsidiary Performance

MEMCO:

  • Improved operational performance in Q4 FY26
  • Revenue: INR 14 crores during quarter 4
  • Focus on building relationships with key customers
  • Modernization of legacy equipment and operational improvements expected to enhance profitability

EMOSS (Netherlands e-mobility subsidiary):

  • Revenue: INR 29.47 crores in Q4 (compared to INR 23.9 crores in previous quarter)
  • Maintained operational stability despite challenging European market conditions
  • Pursuing new opportunities in electric commercial vehicle applications

Renewable Energy

  • Second phase of solar power project commissioned in FY26
  • Total capacity: 29 megawatts
  • Expected annual saving: approximately INR 24 crores
  • Reduces dependence on conventional power sources and supports sustainability objectives

E-Mobility Business Development

Electric Heavy Commercial Vehicle (e-HCV):

  • Successfully developed electric HCV platform
  • First vehicle delivered to customer in Q4 FY26
  • Vehicle undergoing customer evaluation and field trials with initial feedback being encouraging
  • Certification and homologation expected during current financial year (FY27)
  • Commercial deployment scale-up planned from April 2027
  • MOU signed with one customer for potential INR 60-70 crores annualized revenue
  • Focus on niche applications in 10-30 ton MCV/HCV segment for public services, infrastructure, and utilities

Raw Material Cost Impact

  • Aluminum prices increased over 50% due to Iran war situation
  • Other raw materials including steels, LPG, cutting tools, and oils also increased
  • Customers compensate for increased costs but with time lag (especially for 40-50% export business)
  • Expected short-term margin impact until war situation eases

Growth Outlook

  • Strong demand visibility across India, North America, and South America
  • Opportunities expanding for assembled camshafts and precision engineered products
  • Debottlenecking and capacity enhancement projects ongoing with some already in place
  • Gradual volume increase expected through FY27 with major capacity addition in April 2027

Strategic Focus

  • Aim to become number one player in shaft space globally
  • Actively looking for M&A opportunities in India (defense, aero, etc.)
  • No international acquisition plans currently

#Tags: #PrecisionCamshafts #Q4Results #CapacityExpansion #EVBusiness #SEBIDisclosure #RegulatoryCompliance #FinancialUpdate #Neutral