Friday, August 14, 2026 · 10:00 AM IST
Event Participants
Executives – 3
Amit Bhatnagar (Head Corporate Strategy), Pawan Lohiya (Chief Financial Officer), Umesh Chhaya (Whole Time Director)
Analysts – 9
Ajit Sethi (Eiko Quantum Solutions), Mahesh Patil (ICICI Securities), Manik Mahajan (Balyasny Asset Management), Mohit Surana (Monarch Networth Capital), Nishant Bagrecha (InCred Research), Rajesh Vora (Jainmay Venture Advisors), Raman K.V. (Sequent Investments), Rohan Kale (Pitcred), Sanjay Satapathy (Ampersand)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹690 crores | Up 129% YoY; met internal target of ₹700 cr despite monsoon-hit quarter; Q1 is seasonally weakest |
| EBITDA | ₹85 crores | Up 172% YoY; margin expanded ~200 bps YoY to 12.3% on operating leverage |
| EBITDA Margin | 12.3% | Expansion despite gross margin pressure from metal costs and adverse mix; operating leverage offset |
| PAT | ₹58.5 crores | Up 191% YoY; net margin 8.5%; negligible tax due to carried-forward losses |
| EPS | ₹1.11 (face value ₹1) | Reflects PAT growth; profit growing faster than revenue (129% rev → 191% PAT) |
| Order Book | ₹3,688 crores (as of Aug 11) | ~2x FY26 revenue; ₹2,800 cr to be delivered in current fiscal; ₹845 cr for next year; >₹1,000 cr fresh wins since April |
| Net Worth | Negative ₹922 cr (Jun 30); post-QIP positive ₹691 cr | QIP of ₹1,614 cr turned net worth positive; prior losses from resolution plan |
Geographic & Segment Commentary
Conductors: Q1 sales proportionally higher due to monsoon impact on MV/EHV; AL59 now ~70% of market, company stopped ACSR production. Utilization expected at ~40% for FY27.
Medium & Extra High Voltage (MV/EHV) Cables: Core strategic focus; 11-220 kV segment forms largest order book block; weather-affected installation in Q1 but mix improves in H2 as project sites dry out. Margin potential by voltage: 11 kV ~14-15%, 33 kV ~16%, 66 kV+ ~18-22%.
Low Voltage (LV) Cables: New brownfield project converting legacy plant into modern LV/control cable facility (aluminum and copper); 42,000 km annual capacity at full utilization with revenue potential of ₹1,880 crores; deliberately built for copper LV cables to serve data center demand; commercial production expected by March FY28.
Data Centers: ₹435 crore order in hand; targeting ₹1,000 crore orders by March 2027 with sales contribution of ~₹750 crores in FY27; HTLS conductors used for grid upgrades to serve data centers in urban areas.
Company-Specific & Strategic Commentary
Capacity Expansion: Board approved 2 aluminum corrugation lines (₹17 crores CapEx) to expand 66 kV and 132 kV capacity by converting one 33 kV line. Sixth CCV line to be ordered this month (₹50 crores line cost; ₹100 crores with utilities), commissioned by December 2027 — no additional civil/utility CapEx required. Two MV lines under installation (one commissioning by Sept 15, one by March 2027).
Balance Sheet Transformation: QIP raised ₹1,640 crores; net worth positive post-QIP. Funds allocated: ₹130 crores LV expansion, ₹74 crores balancing equipment, ₹350 crores promoter unsecured loan repayment, ~₹750 crores working capital infusion. Virtually zero debt on books; 0.01% promoter-held bonds (30-year) valued at ₹47 crores NPV.
Exports Strategy: Building dedicated team; certifications for US and Europe markets on track. First orders expected Q3/Q4 FY27; target ₹500 crores export order book in year one, initially focusing on conductors and medium voltage products.
Leadership & Talent: Mr. Umesh Chhaya joined as Whole Time Director (3 decades industry experience, retail/costing specialist); 15+ leaders at AVP/VP levels hired; operating costs reduced from 9% to 6.5% of revenue, targeting 6%.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 Revenue | ₹4,300–4,500 crores | Bridge from Q1: seasonality reversal, utilization ramp-up (entered year at low base), funded order book converting to dispatch |
| FY27 EBITDA Margin | 11–13% | Depends on metal prices (aluminum swung 20% within quarter); mix shift to MV/EHV in H2 improves margins |
| FY28 Revenue | ₹7,500 crores | LV project ( |
| FY27 Utilization | Cables 50–52%, Conductors ~40% | Up from FY26 levels (cables 34%, conductors 20%) |
| FY28 Utilization | Cables ~60%, Conductors ~60% | Support from new capacities commissioning |
| Data Center Sales | ~₹750 crores FY27; ~₹1,500 crores FY28 | Target 20% of revenue from data center business |
| Export Order Book | ₹500 crores by FY27 end | First year of exports; Q3/Q4 order inflows expected |
Risks & Constraints
| Risk | Context |
|---|---|
| Monsoon/Weather Impact | Q1 FY27 installations hit by heavy early monsoon; affected project execution and mix (MV/EHV sold at site, cannot be warehoused). Management noted ₹70-80 crore revenue loss if rain had been timely; climate resilience demand (undergrounding) now a structural driver |
| Metal Price Volatility | Aluminum moved from $3,800 to $3,000 within Q1 (20%+ swing); polymer prices impacted by Iran war; pass-through in contracts is back-to-back but lags by a quarter, pressuring gross margins and incremental working capital |
| Customer Concentration | Adani Group ~40% of order book; board mandate to reduce to 20% by year-end; diversified across 670 active customers and 200+ in order book |
| Execution Ramp-up | Scaling from ₹690 cr Q1 to ₹4,300+ cr full year implies >2x run-rate; management emphasizing realistic growth, AI/automation focus, and no compromise on margins for volume |
Q&A Highlights
Capacity Expansion Timeline
- Question: When will the rod mill, incremental MV line, and CCB line start production? What about the 6th CCV line delivery? (Rohan Kale)
- Answer: Rod mill by Oct 15; incremental MV line by Sept 15; CCB line by March 2027; 6th CCV line order placed this month, delivery by Aug 2027, commissioning by Dec 2027. (Amit Bhatnagar)
Net Worth Recovery & Fund Utilization
- Question: Post-QIP, is net worth positive? How much goes to promoter debt vs capacity? (Ajit Sethi)
- Answer: Net worth positive at ₹691 cr post-QIP (was negative ₹922 cr). Allocation: ₹130 cr LV expansion, ₹74 cr balancing equipment, ₹350 cr promoter loan repayment, ₹625 cr general corporate purposes (working capital). (Pawan Lohiya, Amit Bhatnagar)
Legacy Receivables Recovery
- Question: Post-PMLA discharge, how much of the ₹957 crore legacy receivables can be recovered? (Ajit Sethi)
- Answer: Special team formed (legal, accounts, juniors); first-stage evaluation suggests ~₹300 crores recoverable over next 12-18 months. (Amit Bhatnagar)
FY27 Ramp-up Phasing
- Question: Should Q2 see meaningful step-up or gradual ramp through H2? (Nishant Bagrecha)
- Answer: Always gradual — Q2 partially affected by monsoon, Q3/Q4 strongest; Q4 biggest due to March project commissioning deadlines; every quarter last year grew ~50%. (Amit Bhatnagar)
Utilization & Margin Guidance
- Question: Where will utilization end for FY27 and FY28? Does mix improvement take margins above current levels? (Nishant Bagrecha)
- Answer: FY27: cables 50-52%, conductors ~40%; FY28: both ~60% with new LV/CCV lines. Margin guidance 11-13% for FY27; mix shift to MV/EHV in Q2-Q4 will strengthen EBITDA as project-based delivery resumes. (Amit Bhatnagar)
Data Center Opportunity Scale
- Question: How large can data center business become? What proportion of revenue? (Nishant Bagrecha)
- Answer: Target ₹1,000 crore orders by March 2027; sales contribution ~₹750 crores this year, ~₹1,500 crores next year; 20% of revenue target current and next year. (Amit Bhatnagar)
Debt Outlook
- Question: What will be peak debt going forward? (Raman K.V.)
- Answer: No borrowing needed for FY27; current LC of ₹60-75 crore unutilized; existing QIP funds cover growth. No substantial debt expected until March 2028; exploring vendor/dealer financing to improve cash flow and margins. (Amit Bhatnagar)
Customer Mix — Adani & Concentration
- Question: What's Adani vs non-Adani split? (Manik Mahajan)
- Answer: Adani ~40% of current order book; board mandate to reduce to 20% by year-end; ~670 active customers and 200+ in order book. (Amit Bhatnagar)
Revenue Mix at Peak Capacity (₹14,000 crore)
- Question: How will the revenue mix and margins look at full potential? (Rajesh Vora)
- Answer: Conductors 30-35%, LV cables 10-15%, MV/EHV 50-55%; margin ranges: LV 8-9%, conductor 9-10%, 11 kV 14-15%, 33 kV 16%, 66 kV+ 18-22%; blended 11-13%. Data center target 20% of revenue; exports too early to give a definitive number. (Amit Bhatnagar)
Growth Challenges & Competitive Positioning
- Question: What are the 2-3 big challenges in handling such high growth? (Rajesh Vora)
- Answer: Macro: metal/polymer prices, global events (Iran war) requiring 20-30% incremental working capital — insulated by strong promoters (put ₹500 cr working capital in NCLT turnaround). Micro: operational scaling; realistic growth strategy (not rushing capacity utilization to 100% in one year); focus on AI, automation, process digitization for quality traceability in high-voltage products. (Amit Bhatnagar)
Key Takeaway
Diamond Power Infrastructure delivered a strong Q1 FY27 with revenue of ₹690 crores (+129% YoY), EBITDA of ₹85 crores (+172% YoY) at 12.3% margin (+200 bps), and PAT of ₹58.5 crores (+191% YoY) — all achieved despite an early, heavy monsoon that disrupted installation across Gujarat, and before any QIP proceeds were deployed. The company's strategic pivot toward medium and extra high voltage cables is underpinned by a ₹3,688 crore order book (2x FY26 revenue), ₹1,640 crore QIP raising that turned net worth positive, and capacity expansion — two aluminum corrugation lines (66/132 kV), a 6th CCV line (Dec 2027), and a brownfield LV facility targeting data center demand (₹1,880 crore revenue potential). Management guided FY27 revenue of ₹4,300–4,500 crores at 11–13% EBITDA margins and FY28 to ₹7,500 crores, driven by utilization ramp-up (cables to 50-52% in FY27) and mix improvement in H2. Key watch items: Adani concentration (40% of orders, board mandate to halve), metal price volatility, and execution against an aggressive H2 ramp-up. The company remains debt-light through FY28, funded by QIP proceeds and internal accruals.
Transcript incomplete — detailed balance sheet metrics (capital adequacy, asset quality, segment-wise revenue split) not fully available in transcript; management commentary referenced but full financial schedules not provided.