PRECAM Q4 FY26 earnings call.

Guidance to track

• New business awards from Maruti Suzuki, Hyundai, Mahindra, Tata Motors, Renault, Nissan and international OEMs represent cumulative lifetime revenue of ~₹1,500 crore over existing order book, executable over 5-6 years.
• Company plans to invest ₹100-120 crore in foundry and machine shop capacity expansion, automation and advanced manufacturing. Expected incremental revenue of 1.5-2x the capex on an annualized basis at peak utilization in 2.5-3 years.
• Electric heavy commercial vehicle platform (10-30 ton range) delivered to customer for evaluation and field trials. Management targets completion of certification in 6-8 months (within FY27) with commercial deployment from April 2027.
• MOU signed with one customer for electric HCV application projects annual revenue of ₹60-70 crore from a single product. Management described the market gap opportunity as 'tremendous' but declined to quantify further.

Risks flagged

• Aluminum and other raw material prices have increased over 50% in recent months due to geopolitical factors. While OEMs have agreed to compensate, there is a time lag before cost pass-through takes effect, creating near-term margin pressure.
• With foundry at ~80% and machine shop at ~90% utilization, organic growth headroom is limited until new capacity comes online. Management acknowledged growth drivers could be 'muted' in the interim before Q1 FY27 ramp-up.
• Management explicitly stated they do not see 'great amount of growth' in the European e-mobility business this year or possibly next, citing geopolitical instability, two ongoing wars, subsidy constraints and market volatility in Europe. Active on new customer applications but scale-up is 18+ months away.
• The previous EV retrofit attempt with Tata Motors did not proceed due to compliance and RTO issues. Management indicated the business can only take off if regulatory frameworks become easier. This dependency on policy changes creates uncertainty for a key growth lever.

Key quotes

• There are see that this is 1,500 crores cumulative is a combination of variety of programs which have a different start date for each one of them. We are refraining from sharing future numbers or financials. I think that if like I mentioned in the call we are investing about 100 to 120 crores in capex and we expect that the topline increase incremental topline increase would be nearly 1 and a half to 2x of that capex on an annualized basis which will peak out in let's say 2 and a half to 3 years from now.
• The potential is tremendous. Just I think if I have to quantify with one customer we have an MOU already signed where we are looking at an order book of 60 to 70 crores annualized revenue of that much just from one customer and one product. If we kind of extrapolate this to others in this industry who are operating in a similar space, I think the opportunity is tremendous but I don't think I would like to comment on that at this point of time.
• I think right now we are stable at the rate at which we are operating at. We don't see great amount of growth in this year or perhaps even the next year. We are now actively working on a lot of new customers, a lot of new applications which we are now in the initial phases of. So any scale up of such platforms would happen in the next year and a half or so.