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.

Diffusion Engineers Limited , a leading player in welding fabrication technology and engineering, has announced strong financial results for the first half of fiscal year 2026, ended September 30, 2025. The company demonstrated significant growth in both revenue and profitability, reflecting its robust operational performance across its core business segments.

Financial Highlights

• Revenue: Diffusion Engineers posted a consolidated revenue of Rs 1,642.31 million for H1 FY2026, marking a substantial increase of 29.6% from Rs 1,415.76 million in the corresponding period of the previous year.
• Net Profit: The company's consolidated net profit surged by 46.8% to Rs 224.30 million, compared to Rs 157.79 million in H1 FY2025.
• Earnings Per Share (EPS): Basic EPS for the half-year stood at Rs 5.95, up from Rs 5.59 in the same period last year.

Operational Performance

The company's strong financial results were driven by robust performance across its welding fabrication technology and engineering segment. This segment includes manufacturing, trading, and job work activities.

Key Financial Metrics

Balance Sheet Strength

As of September 30, 2025, Diffusion Engineers maintained a strong balance sheet position:

• Total Assets: Rs 4,657.90 million
• Total Equity: Rs 3,862.38 million
• Cash and Cash Equivalents: Rs 1,154.94 million

Management Commentary

Prashant N. Garg, Chairman & Managing Director of Diffusion Engineers Limited, commented on the results, stating, "Our performance in the first half of FY2026 demonstrates the strength of our business model and the growing demand for our products and services. We continue to focus on operational excellence and innovation to drive sustainable growth."

Recent Developments

The company reported the incorporation of a new wholly-owned subsidiary, "Diffusion Wear Solutions Middle East for Welding Wire Rods Electrodes and Similar Products Manufacturing LLC — S.P.C" in the United Arab Emirates (UAE) during the quarter. However, no investments have been made, and business operations are yet to commence.

Outlook

With a strong order book and continued focus on its core competencies, Diffusion Engineers Limited appears well-positioned to maintain its growth trajectory. The company's robust financial performance and strategic initiatives, including international expansion, indicate a positive outlook for the remainder of the fiscal year.

Investors and stakeholders will be keenly watching the company's performance in the coming quarters, especially as it expands its global footprint and navigates the evolving market dynamics in the welding fabrication and engineering sector.