Diffusion Engineers Q1 FY27 Revenue Up 36.5%

Revenue from operations: INR110.108 crore (INR1,101.08 million) vs INR80.665 crore in Q1 FY26, representing 36.5% YoY growth
EBITDA (excluding other income): INR14.154 crore vs INR10.581 crore in Q1 FY26, up 33.76% YoY
EBITDA margin (excluding other income): 12.85% vs 13.12% in Q1 FY26
Profit After Tax: INR16.677 crore vs INR12.264 crore in Q1 FY26, up 35.98% YoY

Revenue from operations: INR95.913 crore vs INR73.372 crore in Q1 FY26, up 30.72% YoY
EBITDA (excluding other income): INR12.154 crore vs INR8.654 crore in Q1 FY26, up 40.44% YoY
EBITDA margin (excluding other income): 12.67%
Profit After Tax: INR9.979 crore vs INR14.204 crore in Q1 FY26 (decline due to one-time dividend of ~INR5 crore from subsidiary in Q1 FY26)

Consolidated order book as of June 30, 2026: INR209 crore vs INR174 crore in March 2026, representing 20.4% sequential growth
Order book breakdown:
Heavy Engineering: INR159 crore
Wear Plates and Wear Parts: INR26.42 crore
Welding Consumables: INR24.22 crore
More than 80% of current order book executable in FY27

Multiple domestic orders aggregating approximately INR62.47 crore:

INR9.88 crore: Supply of VRM and separator parts for cement industry
INR8.16 crore: Supply and maintenance of roller-press rolls for cement industry
INR10.63 crore: Supply of roller assemblies and retrofitting of shafts for cement industry
INR7.49 crore: Supply of Flux-Cored Wire for defense sector
INR26.31 crore: Supply of RAPH rotor assembly for power industry

INR100 crore expansion program underway
Heavy engineering capacity expansion from 9,000 metric tons to 18,000 metric tons
Electrode capacity expansion with new strip slitting capability for backward integration
New manufacturing infrastructure at Nagpur已经开始 phase-wise utilization
Expected to provide significant growth headroom for next phase

Raw material prices increased significantly due to global factors including Middle East conflict
Steel prices increased by approximately 20%
Some ferro-alloys like Tungsten increased by "few hundred percent"
Gross margin contraction of approximately 1-1.5% due to raw material volatility
Prices have stabilized though remain at elevated levels
Customers have accepted higher price levels after explanations

Serves over 35 countries across Middle East, Far East, Southeast Asia, Africa, Eastern Europe, Russia, North America
Turkey operations: Already up and running, out of initial startup red phase
UAE facility: Manufacturing and service capabilities set up and operational, expected revenue from Q2 onwards
Philippines and Singapore subsidiaries contributing significantly to profitability
Share of profit from associates: INR4.4 crore in Q1 FY27 (typically expects INR1-2 crore quarterly)

Progressing through development and qualification process for Vande Bharat ecosystem
Workshop evaluation and approval process ongoing with railway authorities
Expecting revenue conversion in 9-12 months timeframe
Existing business in points and crossing repairs and wear liners for ballast cleaning machines continues

Currently contributing 1.5-2% of overall revenue
Supplying welding consumables, efforts ongoing to move up value chain to manufacturing subassemblies
Tejorup investment (10% stake): Developing prototype for VSHORADS (Very Short Air Defense System)

Working on 4-5 new products including VRM rollers and steel mill rollers
Products in promotion phase with end customers, expected results in current and subsequent quarters
R&D spending approximately 1% of revenue
DSIR approved R&D facility with testing and laboratory infrastructure

Expecting ~20% growth in FY27 and FY28
Targeting doubling of business in next 3 years
Expecting EBITDA margin improvement of 100-200 basis points in FY27-FY28
Immediate priorities: Execute existing order book, ramp up new capacities, maintain quality standards, deepen customer relationships

Approximately INR67 crore still unutilized from IPO proceeds
Expected to be fully utilized by year-end
Most capacity ready, some portion pending completion in next quarter
Some savings expected which may be utilized for other purposes with shareholder approval

Evolving from specialized welding and wear protection company to integrated engineering solutions provider
Focus on combining metallurgical capabilities with heavy engineering manufacturing
Priority on equipment with significant wear parts or consumables requirements where competitive advantage exists
Maintaining pricing discipline and managing procurement amid raw material volatility

India's core industry showing strong momentum with finished steel production up 6% annually, 8.3% in April-June 2026 quarter
Cement sector expecting 7-8% volume growth in FY27 supported by infrastructure spending, housing and urbanization
Union Budget FY27 provides INR2.9 lakh crore for railway expenditure including extra-budgetary resources

No specific dilution or capital structure changes disclosed in this transcript.