Detailed Narrative
Strong Q1 FY27 Performance Driven by Operating Leverage
Diamond Power Infrastructure Limited delivered a robust Q1 FY27, with revenue growing 129% year-on-year to ₹690 crores. EBITDA increased by 172% to ₹85 crores, and the EBITDA margin expanded by nearly 200 basis points to 12.3%. Profit after tax surged by 191% to ₹58.5 crores, resulting in an EPS of ₹1.11. This strong performance, despite monsoon-related disruptions, demonstrates the company's operating leverage and the structural momentum it is gathering.
Successful QIP and Balance Sheet Strengthening
The company successfully completed a Qualified Institutional Placement (QIP), raising ₹1,640 crores (approximately $195 million). This infusion of capital turned the company's net worth positive to ₹691 crores, from a negative ₹922 crores previously. The QIP proceeds are being utilized for LV cable expansion (₹130 crores), balancing equipment (₹74 crores), general corporate purposes (₹325 crores), and working capital funding (₹750 crores). This has also resolved prior auditor qualifications and significantly de-risked the balance sheet.
Robust Order Book and Future Growth Visibility
As of August 11, 2026, the order book stood at ₹3,688 crores, which is roughly two times last year's revenue. The company has secured over ₹1,000 crores in fresh wins since April, including ₹400 crores in the last 6-7 days. Approximately ₹2,800 crores of the current order book are slated for delivery before March 2027. Management expects to add ₹275-325 crores in orders monthly, aiming to have 50-60% of next year's target order book in place by year-end, providing strong revenue visibility.
Strategic Capacity Expansion and Product Mix Shift
Diamond Power is strategically expanding its capacity to focus on higher-value medium and extra-high voltage segments. This includes approving two aluminum corrugation lines (₹17 crores capex) to expand 66 kV and 132 kV cable capacity, ordering a sixth CCV line (to be commissioned by Dec 2027), and installing two additional medium voltage cable lines. A new LV cable project, a brownfield upgrade with no civil construction cost, is also underway, targeting ₹1,880 crores in revenue potential and specifically catering to data centers.
Focus on Data Centers and Disaster Management Projects
The company is actively pursuing opportunities in data center cabling, targeting ₹1,000 crores in orders by March 2027, with ₹750 crores expected in current year sales and ₹1,500 crores next year. Additionally, it is capitalizing on disaster management projects, such as the ₹22,000 crore 'Robust' project in Gujarat, which involves 11 kV and 33 kV medium voltage cables. The company has already secured a ₹1,370 km order from Rajesh Power for this initiative, with tenders emerging from 9-10 coastal states.
Guidance for FY27 and FY28
Management provided full-year revenue guidance of ₹4,300-4,500 crores for FY27 and ₹7,500 crores for FY28. They anticipate maintaining an EBITDA margin in the 11-13% range for both years. Utilization rates are projected to reach 40% for conductors and 50-52% for cables in FY27, further increasing to 60% for both in FY28. The company also aims to reduce its operating cost to 6% and diversify its customer base, targeting to bring down Adani Group's share of the order book from over 40% to 20% by year-end.