Prec. Electronic - Prec. Electronic

📊 BSE: 517258 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company altered its segment reporting to a single segment as per IND AS-108 during FY 2024-25. Traditional revenue streams from Telecom and Infra services are being transitioned toward Defence Manufacturing, though specific percentage growth for these sub-segments is not disclosed.

Geographic Revenue Split

Not disclosed in available documents, though the company notes its brand is relatively unknown in the US and Europe, which hold the largest global market share for tactical infra.

Profitability Margins

Net Profit Margin Ratio declined significantly to (1.41)% in FY 2024-25 from 3.11% in FY 2023-24 due to a decrease in margins. Return on Equity (ROE) fell to (0.05) from 0.10 YoY.

EBITDA Margin

Not explicitly disclosed, but Return on Capital Employed (ROCE) dropped to 0.06 in FY 2024-25 from 0.13 in FY 2023-24, reflecting a sharp decline in core operational profitability.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company identifies the availability of capital needed to quickly scale as a primary threat to operations.

Credit Rating & Borrowing

Not disclosed. Debt Service Coverage Ratio (DSCR) stood at 1.02 in FY 2024-25, down from 1.31 in FY 2023-24, indicating tighter liquidity for servicing debt.

⚙️ Operational Drivers

Raw Materials

MIL grade materials (Military grade) are specified as the primary input for defence manufacturing.

Import Sources

Not disclosed, but the company mentions 'China+1' as a strategic opportunity, suggesting a shift away from Chinese sourcing.

Key Suppliers

Not disclosed, but the company utilizes a 'vendor ecosystem' to deliver MIL grade materials in small lots and tight timelines.

Capacity Expansion

Not disclosed in units; however, the company is pivoting toward Defence Manufacturing articles requiring industrial licenses to meet rising demand.

Raw Material Costs

Not disclosed as a % of revenue, but the company warns that input costs may increase due to disruptions in the supply chain.

Manufacturing Efficiency

The site had zero accidents during FY 2024-25, maintaining an excellent safety track record.

Logistics & Distribution

Not disclosed as a % of revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is targeted through a pivot to Defence Manufacturing, leveraging the 'Make in India' initiative and the 'China+1' opportunity. The company aims to capitalize on the GOI target to triple annual defence production to INR 3 Lakh Cr and double exports to INR 50,000 Cr by 2028-29.

Products & Services

Tactical Infra, Manufacturing of Defence articles requiring industrial licenses, and Telecom/Infra services.

Brand Portfolio

Precision Electronics Limited (PEL).

New Products/Services

Defence manufacturing articles requiring industrial licenses; revenue contribution % not disclosed.

Market Expansion

Targeting Defence Exports and the US/Europe markets where the PEL brand is currently underrepresented.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Not disclosed.

🌍 External Factors

Industry Trends

The industry is shifting toward domestic manufacturing and exports (GOI targets 3x production by 2028-29). PEL is positioning itself by altering segment reporting and obtaining necessary defence licenses.

Competitive Landscape

Key competitors not named, but the company faces competition in the global Tactical Infra market from established US and European brands.

Competitive Moat

Moat is built on 46 years of industry trust and the possession of specific Defence Industrial licenses, which are difficult to obtain and provide a barrier to entry.

Macro Economic Sensitivity

Highly sensitive to Government of India (GOI) defence spending and 'Make in India' policy shifts.

Consumer Behavior

Shift toward 'Other than China' sourcing by global institutional and defence customers.

Geopolitical Risks

The current geopolitical situation has enhanced demand for defence and security products, presenting a growth opportunity.

⚖️ Regulatory & Governance

Industry Regulations

Requires Defence Industrial licenses for manufacturing specific articles. The company is subject to the Factories Act 1948 and various SEBI Listing Regulations.

Environmental Compliance

Not disclosed.

Taxation Policy Impact

Not disclosed.

Legal Contingencies

The company reported non-compliance with Section 180(1)(a) of the Companies Act for creating charges on assets without member approval. Other regulatory issues include non-compliance with SEBI Regulation 33(2)(a) regarding CEO/CFO certifications and Regulation 17(6)(e) regarding executive remuneration exceeding 5% of profits.