Diffusion Engineers Q2 Revenue Up 50.7% YoY

Consolidated Performance Highlights – Quarter and Half Year ended 30 September 2026

Q2 FY27 Financial Performance:

Revenue from Operations: ₹1,259.34 Mn (Q2 FY26: ₹835.66 Mn) - YoY growth of 50.70%
EBITDA (excluding other income and share of profit/loss of associates and joint ventures): ₹166.35 Mn (Q2 FY26: ₹123.67 Mn) - YoY growth of 34.51%
EBITDA Margin: 13.21% (Q2 FY26: 14.80%)
Profit After Tax: ₹127.53 Mn (Q2 FY26: ₹101.65 Mn) - YoY growth of 25.46%
EPS: ₹3.39 (Q2 FY26: ₹2.69; Q1 FY27: ₹4.47)

H1 FY27 Financial Performance:

Revenue from Operations: ₹2,360.42 Mn (H1 FY26: ₹1,642.31 Mn) - YoY growth of 43.73%
EBITDA: ₹307.89 Mn (H1 FY26: ₹229.49 Mn) - YoY growth of 34.16%
EBITDA Margin: 13.04%
Profit After Tax: ₹294.30 Mn (H1 FY26: ₹224.30 Mn) - YoY growth of 31.21%
EPS: ₹7.84 (H1 FY26: ₹5.95)

Standalone Performance Highlights – Quarter and Half Year ended 30 September 2026

Q2 FY27 Financial Performance:

Revenue from Operations: ₹1,080.78 Mn (Q2 FY26: ₹799.61 Mn) - YoY growth of 35.16%
EBITDA (excluding other income): ₹126.14 Mn (Q2 FY26: ₹111.86 Mn) - YoY growth of 12.76%
EBITDA Margin: 11.67% (Q2 FY26: 13.99%)
Profit After Tax: ₹152.38 Mn (Q2 FY26: ₹99.13 Mn) - YoY growth of 53.72%
EPS: ₹4.07 (Q2 FY26: ₹2.65; Q1 FY27: ₹2.68)

H1 FY27 Financial Performance:

Revenue from Operations: ₹2,039.91 Mn (H1 FY26: ₹1,533.33 Mn) - YoY growth of 33.04%
EBITDA: ₹247.68 Mn (H1 FY26: ₹198.41 Mn) - YoY growth of 24.83%
EBITDA Margin: 12.14%
Profit After Tax: ₹252.17 Mn (H1 FY26: ₹241.17 Mn) - YoY growth of 4.56%
EPS: ₹6.75 (H1 FY26: ₹6.44)

Order Book Status (₹ in Mn as of 30 September 2026)

| Heavy Engineering | 1,778.52 | 1,421.64 | 356.88 |

| Wear Plates and Wear Parts | 239.62 | 220.08 | 19.54 |

| Welding Consumables | 249.79 | 99.37 | 150.42 |

| Grand Total | 2,267.93 | 1,741.09 | 526.84 |

Performance Drivers and Margin Analysis

Growth was driven by strong demand across core industrial segments, higher execution levels, and a healthy order book. EBITDA growth was supported by operating leverage from higher volumes, improved execution efficiency, and better absorption of fixed costs.

Margin contraction was attributed to higher input costs including raw materials, energy, and logistics costs, mainly due to macroeconomic and geopolitical issues.

Management Commentary

Mr. Prashant Garg, Chairman & Managing Director, commented on the following key points:

The company delivered strong performance with sustained demand across business segments
Geopolitical uncertainties and supply chain disruptions led to increased input costs, impacting operating margins
The company focuses on operational efficiencies, cost optimization, and improved resource utilization
Major capital expenditure is nearing completion, expected to enhance manufacturing capacity and operational efficiencies
The company continues product innovation and development to address evolving customer requirements
Despite challenges, the company remains optimistic about long-term growth prospects

Business Overview

Diffusion Engineers Limited manufactures welding consumables, wear plates, wear parts, and heavy engineering equipment for core industries including cement, steel, power, and mining. The company provides specialized repairs and reconditioning services for heavy machinery and equipment, and trades anti-wear powders and welding/cutting machinery. The company has manufacturing units in Nagpur, Maharashtra.

Forward-Looking Statements

The document contains cautionary language regarding forward-looking statements, noting they are subject to risks and uncertainties including regulatory changes, economic developments, and other factors that could cause actual results to differ materially from expectations.