Diamond Power Lights Up Q1 FY26 with Stellar Growth & Expansion Plans
Get ready, finance enthusiasts, because Diamond Power Infrastructure Limited (DIACABS) just dropped its Q1 FY26 business updates, and they’re looking pretty charged up! The company, a key player in India’s power transmission sector, is not just powering homes and industries but also powering its own growth story with impressive numbers and forward-looking strategies.
Q1 FY26: A Power-Packed Start 🚀
DIACABS kicked off the fiscal year with a strong performance. Let’s dive into the key highlights:
- Revenue from Operations: Soared to ₹30,182 Lakhs, marking a healthy 35% increase year-on-year (YoY).
- EBITDA: Showed robust growth, rising by an astounding 122% Quarter-on-Quarter (QoQ) and 29% YoY to ₹3,112 Lakhs. This boost pushed EBITDA margins up by 6.1% to 10.3%, thanks to improved operational efficiency and a favorable product mix.
- Profit After Tax (PAT): Witnessed an impressive 162% QoQ growth and 21% YoY growth, reaching ₹2,011 Lakhs, with PAT margins improving by 4.4% QoQ to 6.7%.
Here’s a quick look at the consolidated performance:
| Particular | Q1 FY26 | % | Q4 FY25 | % | Q1 FY25 | % |
|---|---|---|---|---|---|---|
| Revenue from Operations | 30,182 | 100.0% | 33,381 | 100.0% | 22,386 | 100.0% |
| Cost of Goods Sold (COGS) | 24,335 | 80.6% | 28,630 | 85.8% | 17,909 | 80.0% |
| Contribution (A) | 5,847 | 19.4% | 4,751 | 14.2% | 4,477 | 20.0% |
| EBIDTA | 3,112 | 10.3% | 1,399 | 4.2% | 2,409 | 10.8% |
| PBT | 2,013 | 6.7% | 765 | 2.3% | 1,654 | 7.4% |
| PAT | 2,011 | 6.7% | 766 | 2.3% | 1,656 | 7.4% |
(Values in Lakhs)
The product mix also saw a notable shift in Q1 FY26, with LT Cables making up 55% of sales (up from 39% YoY) and HT Cables at 33% (up from 27% YoY), while Conductors decreased to 12% from 34% YoY.
Strategic Expansions & Future-Ready Moves 🏗️
DIACABS isn’t just focused on current performance; it’s laying the groundwork for future dominance. The company’s vision for 2030 aims for double-digit revenue growth, achieving a 12% market share, and being among the top 3 listed companies in its segment.
A significant step is the new wholly-owned subsidiary, Diamond Nextgen Aluminium Alloys Ltd., which is investing ₹60 crore in Capex and ₹150 crore in Working Capital. This subsidiary will boost in-house production of key raw materials, specifically AL-59 conductors, with a total installed capacity of 1,00,000 MTPA. Two of the four integrated rod mills are already commissioned, with the remaining two expected by October 2025.
Why AL-59? The demand for AL-59 conductors in India is approximately 1,000,000 MT annually, driven by high-voltage transmission needs and a preference for high-conductivity, low-sag conductors. However, domestic production capacity is only around 500,000 MT, creating a significant supply shortfall alcircle. The Central Electricity Authority (CEA) has also included AL-59 as a standard, reinforcing its adoption alcircle. AL-59 offers 25-30% higher current capacity and better corrosion resistance compared to ACSR, making it a premium, high-margin product with limited competition Power Line Magazine.
DIACABS is also expanding its EHV, MV, and LV cables capacity, recognizing the immense potential in these segments. India’s EHV cable market alone could reach USD 2-3 billion by 2025, with projections of USD 4-5 billion by 2030 Precedence Research, Grand View Research. The broader wires and cables market is expected to grow from USD 9.3 billion in 2024 to over USD 17 billion by 2032, at an ~8% CAGR electricalindia.in.
Sustainability & Strong Order Book 🌱
Beyond financials, DIACABS is deeply committed to ESG (Environmental, Social, and Governance) principles. Their initiatives include energy efficiency projects, zero industrial waste, water conservation, and a strong focus on employee welfare and robust governance.
The company is also undertaking significant power-saving initiatives, including an energy audit expected to save ₹297 Lakhs per year and reviving windmills to save ₹800 Lakhs annually.
As for the future, DIACABS boasts a healthy outstanding order book of ₹2,555 Crores, with an additional ₹1,405 Crores under finalization and a whopping ₹7,491 Crores in pending bids, signaling strong demand and future revenue visibility. This robust order book, coupled with strategic expansions and a clear vision, positions Diamond Power Infrastructure Limited for continued growth in India’s dynamic power sector.
source: Corporate Announcement
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