Diamond Power Infrastructure Limited Q1 FY27 Earnings Call Summary

Event Date: August 14, 2026

Financial Performance Highlights

Q1 FY27 Consolidated Results:

  • Revenue: INR690 crores (approximately $83 million), up 129% year-on-year
  • EBITDA: INR85 crores, up 172% year-on-year
  • EBITDA Margin: 12.3% (expanded by nearly 200 basis points)
  • Profit After Tax: INR58.5 crores, up 191% year-on-year
  • Net Margin: 8.5%
  • Earnings Per Share: INR1.11 (face value of INR1)

Key Financial Notes:

  • Tax charge for the quarter was negligible due to carry forward of accumulated losses from pre-resolution period
  • Exceptional item in prior accounts was a non-cash, prior period accounting adjustment for depreciation catch-up
  • Auditor qualifications have been resolved, numbers are without any qualification

QIP Fundraising and Capital Structure

QIP Completion:

  • Completed QIP placement raising INR1,640 crores (approximately $195 million)
  • Achieved full minimum public shareholding compliance
  • Funds raised before quarter end, Q1 results delivered without benefit of fresh capital

QIP Fund Utilization:

  • INR130 crores for LV cable expansion
  • INR74 crores for balancing equipment
  • INR325 crores for general corporate purposes
  • INR350 crores to return unsecured loan to promoters
  • Approximately INR750 crores for long-term working capital funding

Net Worth Update:

  • As of June 30, 2026: Negative INR922 crores
  • Post-QIP: Positive INR691 crores

Capacity Expansion and Growth Strategy

Current Operational Capacity:

  • 3 rod mills (4th starting production by October 15, 2026)
  • 4 CCV lines operational (5th commissioning by March 2027, 6th planned for December 2027)
  • 4 MV silane lines operational (5th commissioning by September 15, 2026)

Capacity Expansion Plans:

  • Two aluminum corrugation lines approved with capex of INR17 crores to expand 66 kV and 132 kV cable capacity
  • Sixth CCV line being ordered (delivery expected August 2027, commissioning by December 2027)
  • Two additional medium voltage cable lines under installation
  • LV cable project converting old rod mill to modern LV and control cable facility
  • Capacity: 42,000 kilometers
  • Revenue potential: INR1,880 crores
  • Focus: Copper LV cables for data centers
  • Commercial production expected by March 2028

Order Book and Business Outlook

Order Book Position:

  • As of August 11, 2026: INR3,688 crores (approximately $445 million)
  • 2x last year's revenue across 12 product lines
  • INR1,000+ crores fresh wins since April 2026
  • INR400 crores orders in last 7 days alone
  • INR845 crores to be executed in current year
  • Monthly order addition: INR275-325 crores

Notable Orders:

  • INR435 crores data center order
  • 1,370-kilometer medium voltage order from Gujarat Distribution Utility through Rajesh Power
  • Letter of intent from UP Electricity Board for high tension cable

Financial Guidance:

  • FY27 Revenue: INR4,300-4,500 crores
  • FY28 Revenue Target: INR7,500 crores
  • Margin Guidance: 11-13% EBITDA margin
  • Utilization Targets:
  • FY27: Conductors ~40%, Cables ~50-52%
  • FY28: Conductors ~60%, Cables ~60%

Export Strategy:

  • Current export negligible
  • Building dedicated export team
  • Targeting Europe and US markets
  • FY27 export order target: INR500 crores
  • Focus: Conductor business and medium voltage business

Market Opportunities and Industry Context

Growth Drivers:

  • Renewable energy buildup requiring extra voltage cable and conductor
  • Aging distribution grid reinforcement and undergrounding
  • Smart city mandates requiring underground urban cabling
  • Climate resilience driving underground systems
  • Data center expansion

Specific Market Opportunities:

  • Gujarat Robust project: INR22,000 crores disaster management orders over 3 years
  • INR16,000 crores expected for 11 kV and 33 kV medium voltage cables
  • Similar opportunities in 9-10 coastal states including Orissa, West Bengal, Karnataka, Telangana, Andhra Pradesh

Management and Team Development

Leadership Additions:

  • Mr. Umesh Chhaya joined as Whole-Time Director (industry veteran with 3+ decades experience)
  • More than 15 leaders at AVP and VP levels across functions
  • Building dedicated export team
  • Additional appointments planned over next two quarters

Legacy Matters

PMLA Discharge:

  • May 2026: PMLA discharged INR10 billion+ of fixed assets and INR9.78 billion of NCLT receivable
  • Assets already in use for past four years
  • Legal hurdles settled in May 2026

Legacy Receivables:

  • INR957 crores legacy receivables on books
  • Special team evaluating recovery potential
  • Expecting INR300 crores recovery over 1-1.5 years

Debt Position

Current Debt Structure:

  • INR75 crores LC, INR5 crores CC limit (not currently utilized)
  • INR1,900 crores 0.01% bonds payable after 30 years (promoter-held)
  • Net present value: INR47 crores
  • No substantial debt expected through March 2028

Product Mix and Margin Profile

Current Revenue Mix:

  • 70-80% medium and extra high voltage cables
  • 20-30% low voltage and conductors

Margin Profile by Product:

  • LV Cable (1.1 kV): 8-9% EBITDA
  • Conductor: 9-10% EBITDA
  • Medium Voltage 11 kV: 14-15% EBITDA
  • Medium Voltage 33 kV: 16% EBITDA
  • 66 kV and above: 18-22% EBITDA

Customer Concentration:

  • Adani Group: ~40% of current order book
  • Target: Reduce to 20% by year-end
  • 670 active customers across verticals
  • 200+ customers in outstanding order book

Operational Metrics

Cost Efficiency:

  • Operations cost reduced from 9% to 6.5%
  • Internal target: 6% operations cost
  • Focus on automation, AI, and process improvement

Production Capacity Details:

  • CCV line cost: ~INR100 crores (INR50 crores equipment + INR50 crores utilities/civil)
  • Revenue per CCV line: INR45-50 crores (150 km/month at ~INR30 lakh/km)
  • Silane-based line cost: INR15-20 crores