Diffusion Engineers Limited , a company specializing in innovative superconditioning solutions, has reported a significant transaction involving its Employee Stock Ownership Plan (ESOP) Trust. The Diffusion ESOP Trust acquired 2,93,959 equity shares of the company through the National Stock Exchange (NSE).

Transaction Details

Impact on Shareholding

Following this acquisition, the Diffusion ESOP Trust's holding in the company has increased to 3,00,000 equity shares. This represents 0.80% of Diffusion Engineers Limited's paid-up equity share capital.

Significance of ESOP Trusts

Employee Stock Ownership Plan (ESOP) Trusts are mechanisms used by companies to manage and distribute stock options to employees. Such acquisitions by ESOP Trusts are often seen as positive indicators, suggesting that the company is investing in employee ownership and aligning employee interests with those of the company.

Regulatory Compliance

The company has reported this transaction in compliance with Regulation 7(2)(b) of the SEBI (Prohibition of Insider Trading) Regulations, 2015. This disclosure ensures transparency in transactions involving significant shareholders or trusts associated with the company.

This transaction represents a notable change in the ESOP Trust's holding in Diffusion Engineers Limited.

Diffusion Engineers Limited , a leading engineering solutions provider, has reported a robust performance for the second quarter of fiscal year 2026, with significant growth in revenue and order book.

Financial Highlights

The company posted a standalone revenue of Rs 799.61 million in Q2 FY26, marking a 7.6% increase from Rs 743.15 million in the same quarter last year. Profit after tax (PAT) saw an impressive rise of 13.74%, reaching Rs 99.13 million compared to Rs 87.16 million in Q2 FY25.

The EBITDA (excluding other income) stood at Rs 111.86 million, with an EBITDA margin of 13.99% for the quarter.

Order Book Expansion

Diffusion Engineers has significantly bolstered its order book, which now stands at Rs 209 crores. This growth is primarily driven by strong demand for Roll Press Rolls in the cement sector. The company's heavy engineering segment contributes significantly to this order book, accounting for approximately Rs 170 crores.

Operational Updates

The company is currently undergoing capacity expansions at two sites:

1. Nimji Plant: Construction is progressing well, with the erection phase set to begin. The facility is expected to be operational by the end of Q4 FY26.

2. B33 Plant: New equipment, including a 10-ton extruder and a slitting line, is expected to be operational from November 2025.

Additionally, a 1.4-megawatt solar rooftop plant at the Nimji site is scheduled to go live by January or February 2026, potentially reducing energy costs.

Sector-wise Performance

Diffusion Engineers is witnessing increased industrial activity and robust demand across various sectors:

• Core Industries: The steel, mining, and cement sectors are showing expansion, leading to increased demand for new equipment.
• Mining and Aluminium: The company has developed new capabilities in these sectors, resulting in more inquiries and requests for quotations.
• Railways: Secured contracts for making critical parts for Vande Bharat trains.
• Defense: Executing an order for 65 tons of welding consumables for armoring applications.

Management Commentary

Prashant Garg, Chairman and Managing Director, stated, "We are confident of delivering sustainable growth and improved profitability in the coming quarters. Our healthy order book of over Rs 170 crores, driven by strong demand for Roll Press Rolls for the cement sector and heavy engineering applications, reflects the confidence that customers place in our engineering capabilities."

Future Outlook

The management has reiterated its guidance for double-digit growth in FY26, expecting to be in the mid to late teens. They anticipate EBITDA margins to range between 15% to 17%. In the medium term, the company aims to double its top-line within the next 3 to 4 years.

Diffusion Engineers' strong order book, ongoing capacity expansions, and diversification into new sectors position it well for sustained growth in the coming quarters. The company's focus on in-house manufacturing capabilities and quality control continues to be a key differentiator in the market.