Diamond Power Infrastructure Ltd (DIACABS) Q1 FY27 Earnings Call: Guides Rs. 4,300-4,500 Cr Revenue, Order Book Crosses Rs. 3,688 Cr

Diamond Power Infrastructure Ltd held its Q1 FY27 earnings call on August 13, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Powered by Operating Leverage

• Consolidated revenue of Rs.690 Cr in Q1 FY 2026-2027 — +129% YoY vs Q1 FY 2025-2026, despite an early monsoon that "severely impacted Gujarat cable-laying sites" (management commentary).
• EBITDA of Rs.85 Cr (+172% YoY) — margin expanded 200bps to 12.3%, driven by operating leverage as newer higher-value cable lines matured; gross margin was pressured by stable aluminium/copper input costs and lag in pass-through on back-to-back contracts.
• PAT of Rs.58.5 Cr (+191% YoY) — net margin of 8.5%; EPS came in at Rs.1.11 (face value Rs.1). Tax charge was negligible due to carried-forward accumulated losses, with the benefit expected to last ~2 years.
• One-time prior-period depreciation adjustment — a non-cash item booked below EBITDA that does not recur; auditor qualification has been resolved.
• QoQ growth was modest relative to some peers — management attributed this to a product mix where 70-80% of capacity is in medium/extra high voltage cables, which are project-linked and rain-sensitive, unlike low-voltage products that see continuous demand.

Rs.3,688 Cr Backlog Anchors Rs.4,300-4,500 Cr FY27 Revenue Target

• Order book of Rs.3,688 Cr as of 11 Aug 2026 — ~2x the previous fiscal year's (FY 2025-2026) revenue; of this, Rs.2,800 Cr is scheduled for execution within FY 2026-2027 and Rs.845 Cr for FY 2027-2028.
• Fresh wins since April 2026 exceeded Rs.1,000 Cr — including a Rs.435 Cr data-center cable order and two major utility orders: Gujarat Rajesh Power disaster management and UP Electricity Board high-tension cable.
• Full-year FY 2026-2027 revenue guidance of Rs.4,300-Rs.4,500 Cr — management expects a gradual ramp from the Rs.690 Cr Q1 base, with Q4 the strongest due to project commissioning deadlines; utilization is guided at ~40% for conductors and ~50-52% for cables.
• FY 2027-2028 revenue target of Rs.7,500 Cr — underpinned by additional LV cable capacity (Rs.2,000 Cr) and a new CC line (Rs.600 Cr) lifting utilization to ~60% for both conductors and cables.
• Gujarat's "Robust" project opportunity — management cited the state's Rs.22,000 Cr total outlay over three years, with Rs.16,000 Cr for MV cables (11 kV, 33 kV); an early win of 1,370 km from Rajesh Power was secured, and management expects Rs.4,000-5,000 Cr of orders finalized in Gujarat by end of FY 2026-2027, with similar undergrounding emerging in 9-10 coastal states.

QIP Infusion Fuels Multi-Year Capacity Buildout

• QIP of Rs.1,640 Cr (~US$195M) completed in Q1 FY 2026-2027 — proceeds allocation: Rs.130 Cr for LV cable expansion, Rs.74 Cr for balancing equipment, Rs.325 Cr for general corporate purposes, Rs.350 Cr for repaying promoter unsecured loans, and Rs.750 Cr for working capital infusion; impact on execution expected from H2 FY 2026-2027.
• New line commissioning timeline — 4th rod mill by mid-October 2026 (Q3 FY27), incremental MV XLPE line by mid-September 2026 (Q2 FY27), CCV line by March 2027 (Q4 FY27); a 6th CCV line ordered in August 2026 for commissioning by December 2027 (Q3 FY28).
• New LV cable brownfield project (42,000 km capacity) — revenue potential of Rs.1,880 Cr, with commercial production expected from FY 2027-2028 and commissioning before March 2027 (period unspecified for commissioning).
• Capacity as of Q1 FY27 — 4 CTV lines and 4 silane base lines operational; one additional CTV line to be commissioned by March 2027 and one silane base line by September 2026.
• Near-zero net debt posture post-QIP — current utilization (Aug 2026) is limited to Rs.160 Cr LC, Rs.75 Cr CC, and Rs.5 Cr CC; management expects no substantial debt up to March 2028 (FY28). Total debt as of March 2026 was Rs.2,400 Cr, comprising Rs.1,900 Cr of 0.01% 30-year bonds (promoter-held, NPV Rs.47 Cr) and Rs.400 Cr unsecured promoter loan (repaid post-QIP).

Net Worth Turns Positive; Margin Trajectory Intact

• Net worth swung from -Rs.922 Cr to +Rs.691 Cr — after QIP proceeds of Rs.1,614 Cr (net), the company achieved positive net worth; full minimum public shareholding has also been achieved.
• EBITDA margin guidance of 11%-13% maintained for both FY 2026-2027 and FY 2027-2028 — dependent on metal prices, with product mix shift towards higher-voltage cables (66/132 kV, EHV) in later quarters expected to support the upper end.
• Operations cost improved to 6.5% of revenue — down from 9% previously (Q1 FY 2026-2027); management targets further reduction to 6% (implied for FY 2027-2028).
• Legacy receivable recovery underway — a special team formed post-PMLA discharge (May 2026) to recover Rs.957 Cr of pre-NCLT receivables; management expects ~Rs.300 Cr recoverable over the next 12-18 months.
• Iran war impact on polymer and metal prices — management flagged macro challenges requiring 20-30% incremental working capital, mitigated by strong promoters who have injected Rs.500 Cr into working capital (historical event, period unspecified).

Voltage Mix Shift, Data Center Push, and Export Buildout

• 70%-80% of capacity in medium and extra high voltage cables — peers typically have 85% in low-voltage products; this mix explains the company's rain-sensitive QoQ revenue pattern but positions it for higher-margin EHV projects.
• Data center revenue target of 20% of total revenue at peak — internal target to secure at least Rs.1,000 Cr in data center orders before 31 March 2027; sales expected at Rs.750 Cr in FY 2026-2027 and Rs.1,500 Cr in FY 2027-2028, representing ~20% of cable revenue.
• HTLS conductors driving urban reconductoring for data centers — management cited examples including Adani data center in New Bombay and Microsoft in Hyderabad; AL59 (all-aluminum alloy) now constitutes 70% of the conductor market, with Diamond Power having stopped traditional ACSR production.
• Adani Group exposure at ~40% of order book — the board has mandated reducing this share to 20% by end of FY 2026-2027; the company now engages ~670 active customers with 200+ represented in the order book.
• Export team being assembled for US, Middle East, Africa — certifications for Europe and US are on track; management expects meaningful export order inflows in Q3 and Q4 FY 2026-2027, targeting Rs.500 Cr of export orders for FY 2026-2027, with initial focus on conductor and medium-voltage products.

Guidance Reaffirmed; Macro and Concentration Risks Acknowledged

• FY 2026-2027 revenue guidance of Rs.4,300-Rs.4,500 Cr reaffirmed — backed by the funded order book, seasonal reversal after a weak Q1, and rising capacity utilization as new lines commission; FY 2027-2028 target of Rs.7,500 Cr also reiterated.
• Peak revenue potential of Rs.14,000 Cr over the next few years (period unspecified) — guided with target mix: Conductor 30-35%, Low Voltage 10-15%, Medium and Extra High Voltage 50-55%; at that level, overall EBITDA margin target is 11-13% with EHV segments (66 kV+) achieving 18-22%.
• Board mandate to use AI and IoT for production tracking — management is growing team, infrastructure, and automation gradually rather than rushing from the current Rs.1,600 Cr revenue base to Rs.8,000 Cr in one year.
• Key macro risks — Iran war impact on polymer and metal prices requiring 20-30% incremental working capital; management noted strong promoter support (Rs.500 Cr working capital injection) as a mitigant.
• New leadership hire — Mr. Umesh Chhaya (30+ years of industry experience) joined to build distribution/retail for MV/EHV segments; management committed to all targets promised to investors.