Diamond Power Infrastructure Ltd

Award details

• Awarding entity: Aurionpro Solutions Limited.
• Nature: LOI for supply of HT and LT electrical cables to a Hyderabad hyperscale data centre.
• Value: ₹52.86 crore including GST.
• Entity type: Domestic awarding entity.
• Execution: supplies commence immediately; staggered deliveries per construction programme.
• Significant terms: ~130 km of cables; 116 km 1100V copper backbone; 33kV aluminium cables; IEC 61914.
• Related party: none; order received in ordinary course and at arm's length.
• Related party transactions: not applicable.
• Impact: current data-centre order book at present value exceeds ₹575 crore.
• Pricing: price variation basis IEEMA formula with April 2026 base indices.

Financial Performance

• Q1 FY27 revenue: INR 690 crores; up 129% YoY.
• EBITDA: INR 85 crores; margin 12.3%; up 172% YoY.
• PAT: INR 58.5 crores; net margin 8.5%; up 191% YoY.
• EPS: INR 1.11; face value INR 1.
• Tax charge negligible due to carried-forward losses; benefit to taper over time.
• One-off prior-period depreciation adjustment; EBITDA unchanged; auditor qualification resolved.
• QIP proceeds: INR 1,640 crores; achieved minimum public shareholding.

Operational Update & Margin Profile

• Integrated 10-acre Vadodara complex; end-to-end MV/EHV cable and conductor production.
• Monsoon floods; quarter was seasonally demanding yet revenue rose.
• Gross margin headwinds from aluminum/copper; pass-through not structural.
• EBITDA margin expanded to 12.3% despite material pressures.
• Two aluminum corrugation lines approved; expand 66kV/132kV capacity; capex INR 17 crores.
• Sixth CCV line ordered; commissioning targeted by Dec 2027; no civil capex for new line.
• Two additional MV lines under installation; LV project adds 42,000 km capacity; revenue potential INR 1,880 crores.
• Order book as of Aug 11, 2026: INR 3,688 crores; ~2x last year's revenue.
• Over INR 1,000 crores of fresh wins since April; major orders in past week.
• Data center order INR 435 crores; ~INR 845 crores to be executed next year.
• Exports: currently negligible; certifications underway; expect export inflow in Q3/Q4.
• FY27 guidance: revenue INR 4,300-4,500 crores; EBITDA margin 11-13%.

Capacity Expansion & Capex

• LV cable project: brownfield upgrade; 42,000 km LV capacity; revenue potential INR 1,880 crores.
• New LV line to suit data centers; commercial production FY27-28; commissioning before March.
• Two aluminum corrugation lines expand 66/132 kV capacity; preserve margin profile.
• Sixth CCV line: delivery assurance Aug 2027; commissioning by Dec 2027.
• Existing infra capable of adding one more CCV line; no additional civil capex required.

Order Book & Pipeline

• Order book as of Aug 11, 2026: INR 3,688 crores (~$445m).
• INR 1,000+ crores of fresh wins since April 2026.
• Data center orders target: at least INR 1,000 crores by Mar 31, 2027.
• Export focus: Europe and US certifications underway; expect meaningful inflow in H2 FY27.

Balance Sheet & Cash Position

• Net worth: negative INR 922 crores as of 30-Jun-2026; post-QIP net worth at positive INR 691 crores.
• QIP proceeds: INR 1,640 crores; allocations include LV expansion INR 130; balancing equipment INR 74.
• General corporate use: INR 325 crores; promoter unsecured loan repayment INR 350 crores; working capital INR 750 crores.
• Debt: LC INR 75 crores; CC limit INR 5 crores; not drawn due to QIP funds.
• Earlier long-term borrowings ~INR 2,400 crores (promoter-held bonds); net present value INR 47 crores.

Guidance & Outlook

• FY27 revenue guidance: INR 4,300-4,500 crores.
• FY28 revenue guidance: INR 7,500 crores.
• EBITDA margin guidance: 11-13%; depends on metal prices.
• Data center orders target: INR 1,000 crores by Mar-2027; data-center mix ~20% of revenue long-term.
• Exports: initial target INR 500 crores order book by year-end; monitoring progress.

Q&A Highlights

• Rod mill start by Oct 15; incremental MV silane line by Sept 15; CCV line by Mar 2027.
• Sixth CCV line: order placed; delivery by Aug 2027; commissioning by Dec 2027.
• Exports: currently negligible; expect inflow in Q3/Q4; target INR 500 crores by year-end.
• Adani exposure ~40% of outstanding; board mandate to reduce to 20% by year-end.
• Data center orders: target INR 1,000 crores by Mar-2027; export clarity to follow.
• Margins: FY27 EBITDA guidance 11-13%; sensitivity to metal prices remains.

Operational update

• Commissioned a dedicated copper wire drawing and copper cable line at Vadodara; commercial production commenced Aug 20, 2026.
• Installed capacity: 1,500 MT per month of copper cables for high power applications.
• In-house copper wire drawing from wire rod; integrates conductor manufacture within the facility.
• Extends portfolio from aluminium to copper, enabling complete cable packages.
• No substantial incremental investment; machinery and infrastructure already available.

MPS non-compliance and corrective actions

• Non-compliance with MPS under Regulation 38 for quarter ended 30 June 2026.
• QIP completed July 24–28, 2026; 7,11,00,000 equity shares allotted to QIBs.
• Equity shares listed and admitted for trading on BSE and NSE from July 30, 2026.
• Public shareholding increased to 25.97% post-QIP.
• Promoter and promoter group stake reduced to 74.03% post-QIP.
• Company now in compliance with 25% MPS requirement.
• Penalty of Rs 4,55,000 imposed by NSE and Rs 4,55,000 by BSE.

Meeting Details

• Date and time: August 14, 2026, 10:00 AM IST.
• Type and mode: Group earnings conference call, virtual.
• Event/organiser: Q1 FY27 Earnings Conference Call (organised by Diamond Power Infrastructure Limited).
• Key company participant: Company Secretary.

Participants

• Role: Company Secretary.

Purpose

• Purpose: Discuss Q1 FY27 earnings results with investors.

Additional Notes

• Audio recording of the Q1 FY27 earnings call is available.

Business overview

• Integrated manufacturer of power transmission equipment and turnkey services.
• Vadodara campus: 110 acres; largest single-location cables/conductors complex.
• Capacities: rods 74k MTPA; cables 33,060 KMPA; conductors 100k MTPA.

Operational highlights

• Order book ₹3,687.55 Cr as on 11-Aug-2026.
• 4 CCV and 4 Silane lines commissioned; 1 CCV + 1 Silane line pending.
• Data-centre products with ₹435 Cr MV/EHV order book; export certifications ongoing.
• AECC alliance with TS Conductor enabling 30–40% lower reconductoring costs.

Financial performance

• Q1 FY27 revenue ₹6,899 mn; EBITDA ₹846 mn; PAT ₹585 mn; EBITDA margin 12.3%.
• FY26 revenue ₹19,101 mn; EBITDA ₹2,316 mn; PAT ₹1,582 mn; margins ~12.1%/8.3%.
• Revenue mix: cables 63%, conductors 34%, others 3% (Q1 FY27).

Capital structure & liquidity

• Post-QIP promoter holding 74.03%; institutions 14.24%; public float 25.97%.
• QIP proceeds ₹1,614 Cr; no promoter pledge; funded via QIP and accruals.
• No term debt for LV cable expansion (Project A); capex funded internally.

Strategic priorities & outlook

• Six workstreams underpin growth; capacity expansions underway.
• Capex program: Projects A (LV cables), B (corrugation lines), C (6th CCV line).
• 110-acre Vadodara campus; LV/EHV expansion targeting up to 500 kV range.
• Export roadmap: NABL/BASEC/CPR certifications for Europe/USA/Middle East & Africa.
• Data-centre focus; 42,000 km LV capacity monthly by FY28; 1,00,000 MT conductor capacity.

Governance & leadership

• Independent oversight; EY internal audit; Grant Thornton digital transformation.
• ESG governance roadmap; zero promoter pledge; post-QIP shareholding disclosures.

Financial results

• Approved unaudited standalone and consolidated quarterly results for quarter ended 30 June 2026.
• Limited Review Reports by Naresh & Co; unmodified opinion issued.

Appointments and corporate actions

• Appointed Umeshkumar Chhaya as Additional and Whole-time Director from 13 Aug 2026, subject to AGM.
• Approved shifting registered office to Ahmedabad; subject to AGM approval.

Regulatory and compliance matters

• PPE verification and depreciation restatement pre/post takeovers noted by independent auditors.
• Depreciation shortfall regularised; retrospective adjustments to Capital Reserve and opening Retained Earnings.
• Discharged from CBI/ED/PLMA matters, aiding liquidity and borrowings.

Order details

• Awarding entity: Purvanchal Vidyut Vitran Nigam Limited (PuVVNL), UP discom under UPPCL.
• Contract: supply of 33 kV HT XLPE cables (3C x 300 sq mm).
• Quantity: 250 km; three Discom deliveries—MVVNL 150 km, DVVNL 30 km, PVVNL 70 km.
• Total value: ₹61.03 crore inclusive of GST; base value ₹51.725 crore; pricing variable under IEEMA.
• Delivery window: September 2026 to January 2027; completion by January 2027.
• Guarantee: 36 months from commissioning or 42 months from dispatch, whichever earlier.
• Security deposit: 10% of order value.
• Payment terms: 30 days after receipt of invoice.
• Domestic entity; no promoter or related-party interest; no arm's-length concerns stated.