Diamond Power Infrastructure has secured a new order valued at ₹52.86 crore from Aurionpro Solutions Limited. The contract covers the supply of HT and LT electrical cables for a hyperscale data centre campus at Hyderabad.

WHAT HAPPENED

The scope comprises approximately 130 kilometres of cable, including 1100 V grade XLPE-insulated FRLS-sheathed copper conductor cable and 33 kV grade aluminium XLPE armoured FRLS cable. Supplies commence immediately on a staggered basis.

ORDER IN FINANCIAL CONTEXT

The ₹52.86 crore order adds to the company's existing disclosed order book, which now stands at ₹2308.64 crore across seven orders in the last three fiscal quarters. This total backlog provides coverage for 3.99 quarters of average quarterly revenue, offering clear execution visibility for the near term. The order value represents approximately 9.1% of the company's average quarterly revenue of ₹578.40 crore.

COMPANY ORDER TRACK RECORD

Order inflow velocity remained strong in Q2FY27, with a total of ₹2308.64 crore received across multiple entities. The current order from Aurionpro complements recent large-ticket contracts from major infrastructure clients such as Adani Energy Solutions Limited and Larsen & Toubro Ltd.

EXECUTION AND REVENUE QUALITY

Revenue growth has been strong, with consolidated revenue rising from ₹474.70 crore in Q3FY26 to ₹702.90 crore in Q4FY26. Operating profit margins have remained stable, ranging between 10.63% and 14.58% over the last three quarters, indicating healthy margin quality despite volume increases.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

As Diacabs has sustained order wins, with a notable acceleration in recent quarters, its annual revenue has grown from ₹1115.90 crore in FY25 to ₹1910.10 crore in FY26, representing a YoY growth of +71.2% based on the latest annual data. This demonstrates that past order inflows are effectively converting into top-line expansion.

WORKING CAPITAL AND EXECUTION CAPACITY

The company maintains a current ratio of 2.04x, suggesting adequate liquidity to manage working capital requirements for the existing backlog. However, the Total Liabilities/Equity ratio stands at -4.98x, reflecting negative equity due to accumulated losses or reserves, which warrants monitoring as the company scales operations. Operating cashflow was positive at ₹77.30 crore in FY25, indicating reasonable cash conversion from operations.

WHAT TO WATCH

• Execution rate: Monitor quarterly revenue run-rate against the ₹2308.64 crore backlog to assess conversion speed.
• OPM trajectory: Watch for margin stability on new orders given the variable pricing linked to IEEMA indices where applicable.
• Client concentration: Evaluate if any single client accounts for more than 40% of the total disclosed order book.
• Working capital management: Ensure liquidity remains sufficient as order book coverage exceeds three quarters.

KEY OBSERVATIONS

• Valuation check (as of 22 Aug 2026): P/E of 110.0x against ROCE of 3.49%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios. (P/E is price-derived and will change; ROCE is from audited financials)
• Backlog signal: Book-to-bill of 3.99x. At this level, execution capacity becomes the binding constraint.
• Leverage flag: Total Liabilities/Equity of -4.98x; balance sheet carries elevated liabilities, and ability to fund working capital for the existing backlog should be monitored.

Diamond Power Infrastructure reported a 191% year-on-year rise in net profit to ₹58.5 crore for the quarter ended June 30, 2026 (Q1FY27). Revenue more than doubled to ₹690 crore, reflecting strong operational leverage despite monsoon-related disruptions in Gujarat.

Financial Performance

The company’s top line grew 129% YoY to ₹690 crore, meeting internal targets despite heavy rainfall affecting installation sites. EBITDA expanded by 172% to ₹85 crore, with margins widening by nearly 200 basis points to 12.3%. This margin expansion occurred even as raw material costs for aluminum and copper remained firm, indicating effective cost absorption across a larger revenue base.

Profit after tax stood at ₹58.5 crore, translating to an earnings per share of ₹1.11. The tax charge was negligible due to the carry-forward of accumulated losses from the pre-resolution period, a benefit expected to taper over the next two years as profitability continues.

What the Numbers Show

The divergence between revenue growth (129%) and profit growth (191%) highlights significant operating leverage. While gross margins faced pressure from metal price fluctuations and lagged pass-throughs, fixed costs were spread over a substantially larger top line. This structural shift allowed the company to deliver a materially stronger operating margin despite headwinds in input costs.

Order Book and Capacity Expansion

As of August 11, 2026, the order book stood at ₹3,688 crore, approximately twice last year’s revenue. Over ₹1,000 crore in fresh wins were secured since April, including recent orders worth ₹400 crore. Approximately ₹845 crore is scheduled for execution in the next year, supporting management’s guidance for full-year revenue in the range of ₹4,300 crore to ₹4,500 crore.

Management highlighted several capacity expansions:

• Two new aluminum corrugation lines approved to expand 66 kV and 132 kV cable capacity.
• A sixth CCV line ordered, expected to commission before December 2027.
• Two additional medium voltage cable lines under installation.
• A new LV cable project converting legacy plants, targeting commercial production in FY28.

Balance Sheet and Capital Raise

The company completed a Qualified Institutional Placement (QIP) raising ₹1,640 crore, achieving full minimum public shareholding compliance. Post-QIP, the net worth turned positive to ₹691 crore, up from a negative ₹922 crore as of June 30, 2026. Funds will be deployed towards working capital (₹750 crore), promoter debt repayment (₹350 crore), and capital expenditures for LV cable expansion and balancing equipment.

Exports remain negligible currently, but management targets an order book of at least ₹500 crore from exports by the end of FY27, focusing on conductor and medium voltage businesses in Europe and the U.S.