Diffusion Engineers LimitedCapital Goods & EngineeringDIFFNKG
Q1 FY27 concall · earnings callDiffusion Engineers Limited
Diffusion Engineers delivered strong revenue growth driven by a large and diversified order book, and is ramping up new capacity to execute larger projects while expanding into new markets.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹110.11 Cr | 36.5% | |
| Consolidated EBITDA | ₹14.15 Cr | 33.76% | |
| Consolidated EBITDA Margin | 12.85% | — | |
| Consolidated PAT | ₹16.68 Cr | 35.98% | |
| Standalone Revenue | ₹95.91 Cr | 30.72% | |
| Standalone PAT | ₹9.98 Cr | — | |
| Consolidated Order Book | ₹209 Cr | 20.4% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹79.20 Cr— YoY-4% QoQ | ₹7.25 Cr— YoY-14.8% QoQ | ₹1.92— YoY-36.2% QoQ |
| Q2 FY25 | ₹82.47 Cr— YoY+16% QoQ | ₹8.51 Cr— YoY+17.1% QoQ | ₹3.01— YoY+16.7% QoQ |
| Q1 FY25 | ₹71.08 Cr— YoY— QoQ | ₹7.27 Cr— YoY— QoQ | ₹2.58— YoY— QoQ |
TL;DR
- Consolidated revenue grew 36.5% YoY to INR1101.08 million, with order book up 20.4% sequentially to INR209 crores.
- Growth was primarily domestic; export ramp-up is expected in subsequent quarters.
- New manufacturing capacity has begun phased commissioning, with heavy engineering capacity doubling to 18,000 metric tons.
- Management expects 20% revenue growth for FY'27 and FY'28, with EBITDA margin improvement of 100-200 basis points.
- Raw material price volatility impacted gross margins by 1-1.5%, but prices have stabilized and increases are being passed to customers.
Said on the call
“We always believe in, you know, overperforming and undercommitting or being realistic.”
From the Q&A
| Topic | What management said |
|---|---|
| Growth Drivers and Segments | Growth of over 30% came across all three segments (consumables, wear plates & parts, heavy engineering), driven by a high starting order book, with domestic sales being the primary contributor. |
| Raw Material Price Impact | Raw material price volatility, with steel up ~20% and some ferro-alloys up by a few hundred percent, caused a gross margin contraction of 1-1.5%. Prices have now stabilized and increases are being passed to customers. |
| Order Book Executability | More than 80% of the INR209 crore order book is executable in FY'27, with customers requesting to prepone some deliveries. |
| New Capacity Commissioning | The new manufacturing capacity has started being utilized in a phased manner, with the heavy engineering capacity expanding from 9,000 to 18,000 metric tons. |
| Associate/JV Profit Contribution | The share of profit from associates (LSN Diffusion) was INR4.4 crores for the quarter, which is above the typical INR1-2 crores range; the extra is considered a one-off for the quarter. |
| International Expansion Status | The Turkey business is up and running and out of the red. The UAE facility is set up and revenue is expected from Q2 onwards. |
| Revenue Guidance and Margins | Management expects ~20% revenue growth for FY'27 and FY'28, aiming to double in 3-4 years. EBITDA margins are expected to improve by 100-200 basis points over the next year/year and a half. |
| Railway and Defense Opportunities | Railway orders for Vande Bharat are under evaluation and workshop approval is pending; revenue is expected in 9-12 months. Defense revenue is currently ~1.5-2% of total, with efforts to move beyond consumables ongoing. |
Guidance
- Expect to grow at around 20% in FY'27 and FY'28, and aim to double in next 3-4 years.
- Expect EBITDA margins to increase by 100-200 basis points in FY'27 and FY'28.
- More than 80% of the INR209 crore order book is executable in FY'27.
Source
Summary written from the transcript filed by Diffusion Engineers Limited for the call held on 13 Aug 2026; published 18 Aug 2026, 19:48 IST.
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