/** Title: Diamond Power (DIACABS) Q1 FY27: Operating Leverage Shows Up, Backed by a Large Order Book */

Diamond Power (DIACABS) Q1 FY27: Operating Leverage Shows Up, Backed by a Large Order Book

Diamond Power Infrastructure Limited reported a sharp step-up in performance in Q1 FY27, despite management describing the quarter as operationally difficult due to an early and heavy monsoon in Gujarat. On a consolidated basis for the quarter ended 30 June 2026, revenue rose to INR 689.9 crore, up 129% year on year. EBITDA increased to INR 84.6 crore, up 172% year on year, and EBITDA margin expanded to 12.3%. PAT came in at INR 58.5 crore, up 191% year on year, translating to an 8.5% net margin.

What stood out in management commentary was the pattern of growth: profit rising faster than revenue. The company framed this as operating leverage, with fixed costs spreading across a higher top line even as gross margin faced timing pressure from metal price movements.

Product mix: cables dominate the quarter, but conductors remain a major engine

The investor presentation provided a clear revenue mix for the quarter. Cables accounted for 63% of Q1 FY27 revenue, conductors contributed 34%, and the rest was classified as others.

Within cables, 33 kV was the largest bucket, followed by 11 kV. In conductors, AL-59 Zebra and Moose were the biggest contributors.

Financial summary (consolidated)

The P&L table also showed a higher finance cost year on year (INR 14.2 crore vs INR 3.7 crore), while other income was materially higher in Q1 FY27.

Order book: visibility improves, with data-centre orders embedded in cables

As of 11 August 2026, the company disclosed an outstanding order book of INR 3,687.55 crore, up from INR 3,240.4 crore at March 2026. The order book split, as presented, was 51.4% conductors and 48.6% cables. Data-centre products were highlighted as INR 435 crore of MV cable orders, included within the cable order book.

Management also stated that around INR 845 crore of the conductor order book is executable in FY28, implying that the remainder is intended for earlier execution periods.

During the concall, management added that order inflow has remained strong since April and referenced further order additions in the days preceding the call. The strategic importance of the order book is that it underwrites a utilisation ramp from the low FY26 base.

Guidance and the utilisation ramp: management sets explicit targets

The most explicit forward-looking statement in the transcript was the revenue guidance. Management stated it is on track to deliver a full-year FY27 top line in the range of INR 4,300 crore to INR 4,500 crore. It also guided to an EBITDA margin range of 11% to 13%, noting that the range is sensitive to metal price moves and timing of pass-through.

Utilisation guidance was also shared:

• FY27 utilisation: conductors around 40% and cables around 50% to 52%
• FY28 utilisation: conductors around 60% and cables around 60%, supported by additional capacity coming into play

The management view was that Q1 is seasonally weak due to rains, and Q3 and Q4 are typically the strongest quarters as projects push to meet March timelines.

Capex program: three projects, with disclosed economics

A notable feature of the investor presentation was the level of detail on capex and project economics.

Project A: LV cables expansion

The company plans to convert an old rod mill and legacy conductor plant into a modern LV power and control cable facility. The total capex is stated as INR 133.59 crore (tax inclusive), with net capex of about INR 120.41 crore after GST credit.

The presentation discloses project return metrics including an unlevered IRR of 25.8%, NPV at 12% of INR 293 crore, and a project cost payback of about 2.5 years. Commercial production is indicated as FY 2027-28. Management described the facility as relevant for copper LV cables targeted at data-centre demand.

Project B: corrugation lines for 66/132 kV

This INR 17.03 crore debottlenecking capex is designed to remove a completion bottleneck on 66 kV and 132 kV cables and enable a product mix shift from 33 kV upward. The deck includes a case study showing that shifting 33 kV output to 66 kV can add approximately INR 375 crore of annual revenue, with payback indicated as short under the assumed contribution profile.

Project C: sixth CCV line (in-principle approval)

The company stated in the deck that the line unlocks an FY28 plan of INR 652.9 crore across 66 kV and 132 kV categories, with commissioning targeted before December 2027. In the concall, management discussed delivery assurances and an estimated 4 to 5 months commissioning period after delivery.

QIP and balance-sheet positioning

Post the INR 1,614 crore QIP, management stated net worth turns positive. As per the concall:

• Net worth as of 30 June 2026: negative INR 922 crore
• Net worth after QIP proceeds: positive INR 691 crore

Management also disclosed intended uses of funds including capex, general corporate purposes, repayment of INR 350 crore unsecured promoter loan, and the balance towards long-term working capital funding.

Risks and watchpoints that management itself highlighted

The transcript carries a few clear operational and financial sensitivities.

First is seasonality and the impact of rains on MV cable execution, which management said affects trenching and site work. Second is the timing impact of metal and polymer price swings. While the company stated it is back-to-back on pass-through clauses, it acknowledged that realised pass-through can lag in the reported quarter.

A third watchpoint is customer concentration. Management stated that around 40% plus of the current order book is from Adani, and the board mandate is to bring it down to 20% by the end of the year.

Closing takeaways

Diamond Power’s Q1 FY27 performance shows a step-change in scale, with operating leverage evident in margin expansion even in a monsoon-disrupted quarter. The disclosed order book provides visibility, and management has put explicit numbers on FY27 revenue and margin expectations.

The next milestones will be execution through the seasonally stronger half of the year, commissioning timelines for incremental lines, and progress on diversifying the order book while scaling data-centre and export opportunities.