Diamond Power’s Q2 data-centre cables generate Rs 242 crore

Diamond Power Infrastructure Limited generated Rs 242 crore from data-centre cables in Q2 FY27, equal to 23% of Rs 1,032 crore revenue from operations, after the line recorded zero revenue in Q1 FY27. Management said orders already support Rs 750 crore of FY27 data-centre revenue from the newly commissioned copper-cable operation.

How material were data-centre cables to Diamond Power’s Q2 sales?

Data-centre cables were a material new revenue contributor for Diamond Power in Q2 FY27, generating Rs 242 crore, or 23% of quarterly revenue from operations. Total Q2 revenue was Rs 1,032 crore, up 135% year on year and 50% sequentially. Management said conventional cables represented 40% of revenue and conductors represented 31%.

The business was absent from the Q1 FY27 revenue base. Management said the data-centre cable line had generated zero revenue three months earlier, before producing Rs 242 crore in Q2. This makes the reported contribution a result of commissioning and ramping a new product line rather than growth in an existing reported data-centre business.

September accounted for most of the initial ramp. Diamond Power said it produced and delivered Rs 240 crore of data-centre cables during the month, alongside record total production of more than Rs 575 crore plus goods and services tax. Management said qualified institutional placement funds entered the company in August, preceding the September production record.

The new line also added a product-mix driver during a period of higher metal prices. Management estimated that metal prices and price-variation pass-through accounted for perhaps one-third of its 135% Q2 revenue growth, while cable kilometres and conductor tonnes produced and dispatched increased by more than 60% to 70% year on year. Data-centre cable sales were therefore separate from the metal-linked increase in invoiced values.

What data-centre cables is Diamond Power supplying?

Diamond Power is supplying principally single-core cables to data-centre projects, generally in 33 kilovolt, or kV, configurations and, in some cases, 1.1 kV configurations. Management said the cables can use aluminium or copper depending on the power intensity required by a particular data-centre installation.

Management also said some data-centre projects use high-temperature low-sag, or HTLS, conductors, while others use compounds suited to 220 kV and 400 kV cable classes. The configuration depends on the construction and power-transmission requirements of each data-centre project, according to management.

The Q2 sales were supplied through engineering, procurement and construction contractors building hyperscale data centres. Management named L&T, AurionPro, Sterling Wilson and Blue Star among those contractors. The transcript did not disclose sales values by contractor, project or end customer.

Diamond Power said its copper-cable capacity was live at 1,500 tonnes a month and was being scaled to 2,500 tonnes a month. Management did not give a commissioning date or capital expenditure figure for that capacity increase. It said the September output was achieved with the production lines, workforce and systems already in place.

Why does Diamond Power expect higher data-centre cable margins?

Management said data-centre cable projects can offer at least 2% additional margin because pre-qualification standards are stringent. It attributed the margin difference to the approval process applied by data-centre consultants and companies, which limits the pool of approved suppliers.

The company did not report a standalone data-centre cable margin, contribution margin or profit figure. Its Q2 earnings before interest, tax, depreciation and amortisation, including other income, were Rs 133 crore at a 12.9% margin, but that was a company-wide measure and not a segment result.

Management characterised data-centre cables as broadly similar to conventional cables in construction rather than a distinct category with a separately disclosed cost structure. The potential premium, it said, stems from customer qualification requirements rather than a claimed fundamental change in cable technology.

That distinction matters because Diamond Power’s Q2 operating expenses also changed at the consolidated level. Employee and other expenses fell to 5.7% of revenue from 8.2% a year earlier, while management said contribution margin as a percentage of revenue declined to 16.9% from 18.7% because higher London Metal Exchange aluminium prices increased the revenue base under price-variation clauses.

Is Diamond Power’s FY27 data-centre revenue supported by orders?

Management said Diamond Power expects Rs 750 crore of FY27 revenue from data-centre customers and that it already has orders for this amount. The disclosure gives the company an order-backed revenue expectation for the year, compared with Rs 242 crore of data-centre cable revenue reported in Q2 FY27.

The company did not disclose a separate data-centre order-book balance, execution schedule or customer-wise allocation. Its overall firm order book stood at Rs 3,735 crore at quoted value on September 30, 2026, or about Rs 4,300 crore at current market prices under price-variation clauses. Conductors represented 46% of quoted orders, medium-voltage cables represented 36%, and the balance comprised low-tension and data-centre cables.

In H1 FY27, Diamond Power recorded order inflow of Rs 2,217 crore against revenue of Rs 1,722 crore, producing a book-to-bill ratio of 1.29 times. Management said its average monthly order intake was Rs 350 crore to Rs 400 crore and expected stronger inflows in Q3 and Q4, when government-budgeted tenders are typically finalised.

Management also said its teams were scanning data-centre opportunities in 66 Indian cities, with planned projects ranging from 20 megawatts to gigawatt scale. It referred to more than 230 developers based on information available to it. These figures describe management’s opportunity assessment, whereas the Rs 750 crore FY27 expectation was described as backed by orders.

What will determine the next phase of Diamond Power’s data-centre business?

The next phase depends on execution of the Rs 750 crore FY27 order-backed expectation and the planned scale-up of copper capacity from 1,500 tonnes to 2,500 tonnes a month. Management said most leading data-centre consultants had approved Diamond Power and described the company as a preferred vendor following the Rs 240 crore September delivery.

The broader FY27 revenue plan sets an additional execution benchmark. Management retained its Rs 4,300 crore to Rs 4,500 crore FY27 revenue target after reporting Rs 1,722 crore in H1. It said Rs 2,580 crore of H2 revenue would be needed to reach the lower end of that range and cited its analysis that cable companies generally generate 40% of annual revenue in the first half and 60% in the second half.

Customer concentration remains relevant to the overall business mix. Adani Group entities accounted for 43% of Diamond Power’s September order book, while management said Adani sales were below 30% of Q2 revenue. Management said it aims over time to limit Adani’s share of revenue to 20%.

Diamond Power is also pursuing wider cable capacity and backward integration. Management disclosed a Rs 170 crore polymer complex, with phase one planned for progressive commissioning between June and December 2027. That project is intended to produce insulation and sheathing compounds for captive use and is separate from the copper-cable expansion serving data-centre demand.

Conclusion

Diamond Power’s new data-centre cable line became a significant Q2 FY27 revenue contributor, producing Rs 242 crore after recording no revenue in Q1. The September delivery of Rs 240 crore shows that the initial ramp was concentrated late in the quarter, while management’s Rs 750 crore FY27 expectation indicates that it views the business as an order-backed revenue line rather than a one-month project outcome.

The next disclosures to watch are execution against the Rs 750 crore FY27 data-centre revenue expectation and progress in expanding copper capacity from 1,500 tonnes to 2,500 tonnes a month. Management also retained its Rs 4,300 crore to Rs 4,500 crore FY27 revenue target, with Rs 2,580 crore required in H2 to reach the lower end of that range.