Precision Camshf Q1 FY27 Results (NSE: PRECAM)
Signal: Revenue declined
The read
The key inflection is a sharp deterioration in consolidated operating earnings: revenue declined 3.6% YoY, EBITDA fell 51.9% and margin contracted 1070bps to 10.7%, while standalone revenue grew 17.4% but standalone EBITDA margin fell 830bps to 14.8%; the group remains dragged by subsidiaries and reported profit is heavily supported by ₹1206.27 lakh other income and a ₹397.02 lakh exceptional gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹187.89 Cr | -3.6% | -6.6% |
| EBIT | ₹9.97 Cr | -65.8% | |
| Net profit | ₹8.45 Cr | -55.1% | |
| EPS | ₹0.89 | -55.1% | |
| EBIT margin | 10.7% |
P&L walk
Consolidated revenue of ₹18780.49 lakh fell 3.6% YoY and 6.6% QoQ; gross margin contracted 162bps YoY to 63.8%, EBITDA fell 51.9% to a 10.7% margin, and PAT declined 55.1% to ₹844.69 lakh despite ₹1206.27 lakh of other income and a ₹397.02 lakh exceptional gain.
Segments
No segment table was disclosed; the material divergence is between standalone revenue growth of 17.4% YoY and consolidated revenue decline of 3.6% YoY, while three subsidiaries reported ₹2742.20 lakh revenue and ₹626.21 lakh net loss.
Key positives
- Standalone revenue was ₹16047.29 lakh, up 17.4% YoY and 1.9% QoQ, materially outperforming consolidated revenue, which declined 3.6% YoY.
- Consolidated finance costs fell 34.7% YoY to ₹125.24 lakh, limiting below-EBITDA pressure.
- Consolidated EPS of ₹0.89 declined 55.1% YoY in line with PAT, with no evidence of dilution-driven divergence.
Key concerns
- Consolidated EBITDA fell 51.9% YoY to approximately ₹2018.41 lakh and EBITDA margin contracted 1070bps to 10.7%.
- Standalone revenue grew 17.4% YoY but EBITDA fell 46.0% and margin declined 830bps to 14.8%, indicating weak conversion of revenue growth into operating profit.
- Three subsidiaries reported ₹2742.20 lakh revenue and ₹626.21 lakh net loss, pulling consolidated PAT down to ₹844.69 lakh versus standalone PAT of ₹1487.76 lakh.
Earnings quality: includes other income and an exceptional item
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