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.

Diamond Power Infrastructure commissioned a dedicated copper wire drawing and cable manufacturing line at its Vadodara plant on August 20, 2026. The facility adds 1,500 MT per month of capacity for high-current applications.

The company disclosed the commissioning pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Commercial production began immediately upon commissioning.

Capacity and Product Scope

The new line is integrated within the company's existing manufacturing complex at Savli, Vadodara, Gujarat. It features in-house copper wire drawing from copper wire rod, allowing direct control over conductor quality and cost.

Strategic Shift to Copper

Diamond Power has primarily manufactured aluminium-based cables and conductors. This expansion marks its entry into the copper cable segment, which commands higher realisations. The move enables the company to offer a complete cable package across both aluminium and copper materials.

Kavish Shah, Vice President of Corporate Strategy at Diamond Power, stated that customers have requested a single source for both conductor types. He noted that the company is entering copper at a point of strong demand in data centres and power plants, describing it as a deliberate step up the value chain.

Financial Implications

The disclosure indicates that no substantial investment was required or incurred for this capacity addition, as the requisite machinery and infrastructure were already available with the company. The event does not constitute a change in the general character or nature of the business.

The company expects the new line to support business growth and positively impact its topline. It plans to address both domestic and export markets, consistent with its existing customer base. No promoter or group company interest was reported in this event.