Diamond Power Infrastructure reported a consolidated net loss of ₹60,420.37 lacs for the fiscal year ended March 31, 2026, with its independent auditors issuing a qualified opinion on the financial statements. Naresh & Co., the statutory auditor, qualified the report primarily due to the pending completion of a physical verification and valuation exercise for the holding company’s Property, Plant & Equipment (PPE) register. This unresolved matter affects the accuracy of depreciation charges and asset valuations carried forward from the pre-NCLT period.

The qualification stems from Note 4 of the financial statements, where management disclosed that an independent agency is still finalizing the value-in-use and remaining useful lives of PPE items. Consequently, depreciation on pre-takeover assets was provided at only 20% of the applicable rate, totaling ₹1,903.69 lacs, while fresh additions incurred regular depreciation of ₹1,018.64 lacs. The total depreciation charge for the year amounted to ₹2,922.33 lacs. The auditor stated that they could not verify the correctness of PPE values or the appropriateness of the depreciation estimates until the reconciliation exercise is completed, which management expects to finish in the first quarter of the next fiscal year.

Despite the qualification, the group’s operational performance showed significant activity, driven largely by its wholly-owned subsidiary, Dicabs Nextgen Special Alloys Private Limited. The subsidiary, which commenced operations during the year, reported revenues of ₹95,337.82 lacs and total assets of ₹33,463.63 lacs as of March 31, 2026. In contrast, the holding company’s standalone contribution to the consolidated profit or loss was a loss of ₹61,456.19 lacs. The subsidiary’s strong turnover helped offset some of the holding company’s losses, resulting in a consolidated net loss that was lower than the holding company’s standalone figure.

Financial Position and Liabilities

The group’s balance sheet reflects substantial liabilities inherited from its corporate insolvency resolution process (CIRP). As per the NCLT-approved Resolution Plan implemented in September 2022, the company issued unsecured redeemable bonds with a present value of ₹4,557.23 lacs and a deferred liability of ₹1,85,370.24 lacs. Long-term borrowings stood at ₹2,48,765.22 lacs, including secured bank term loans and unsecured inter-corporate deposits. The company also reported lease liabilities of ₹650.69 lacs and other financial liabilities of ₹609.82 lacs.

Key Audit Matters and Inventory Risks

Beyond the PPE qualification, auditors identified the existence and valuation of returnable drums as a Key Audit Matter. These drums, used for dispatching cables, constituted approximately 17% of the holding company’s total inventory value. A significant portion remained at customer premises, with return cycles ranging from 45 days to six months. While the company is entitled to raise debit notes for drums not returned within six months, auditors noted instances where debit notes were withheld due to business relationship considerations. The audit team evaluated management’s rationale for these delays and assessed the adequacy of provisions for non-recoverable drums.

What the Numbers Show

The divergence between the subsidiary’s robust revenue generation and the holding company’s substantial losses highlights the transitional nature of Diamond Power Infrastructure’s post-insolvency operations. While the new management has successfully ramped up production at the subsidiary, the holding company continues to grapple with legacy accounting complexities, particularly regarding asset valuation and depreciation. The 20% depreciation cap on pre-NCLT assets suggests a conservative approach to expense recognition pending final verification, which may impact future profitability metrics once the full value-in-use is crystallized. Investors should monitor the completion of the PPE reconciliation exercise, as any adjustments could materially affect the carrying value of assets and future depreciation charges.

Diamond Power Infrastructure Limited has secured shareholder approval to raise funds through the issuance of equity shares via Qualified Institutions Placement (QIP). The special resolution was passed with 99.9995% of votes in favour, enabling the company to proceed with its capital raise plans. The outcome allows the company to access institutional capital to support its financial objectives.

The remote e-voting process, managed by KFin Technologies Limited, concluded at 5:00 p.m. IST on July 19, 2026. A total of 404,603,686 votes were polled, representing 76.78% of the total outstanding shares. The resolution was deemed passed on the same day, based on the report submitted by the scrutinizer, Ashish Shah & Associates, Practicing Company Secretaries.

The voting breakdown indicates strong support across all categories. Promoters and the promoter group cast 402,773,950 votes in favour, while public institutions and non-institutions contributed 1,611,536 and 216,273 votes respectively. Only 1,927 votes were cast against the resolution.

Voting Results Summary

The postal ballot notice was dated June 18, 2026, and the cut-off date for determining shareholder eligibility was June 17, 2026. The results have been disclosed to the stock exchanges in compliance with Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.