Diamond Power posts Rs 1,032 crore quarter, Rs 572 crore cash

Diamond Power Infrastructure Limited reported Rs 1,032 crore of revenue from operations in Q2 FY2027, its first Rs 1,000 crore quarter, and had Rs 572 crore of net cash on September 30, 2026, compared with Rs 527 crore of net debt on March 31, 2026. Q2 revenue rose 135% year on year and 50% sequentially.

How did Diamond Power reach its first Rs 1,000 crore quarter?

Diamond Power reached its first Rs 1,000 crore quarter through growth in cables, conductors and a new data-centre cable line, reporting Rs 1,032 crore of Q2 FY2027 revenue. Management said revenue increased 135% from the corresponding quarter a year earlier and 50% from Q1 FY2027. For H1 FY2027, revenue was Rs 1,722 crore, which management said represented 90% of the Rs 1,914 crore revenue reported for all of FY2026.

Cables accounted for 40% of Q2 revenue, conductors accounted for 31%, and the balance came from data-centre cables. Management identified 11 kilovolt, 33 kilovolt and 66 kilovolt medium-voltage cables, extra-high-voltage cables and AL59 conductors as contributors. It also reported 6,850 kilometres of conductor dispatches during Q2 FY2027, providing a physical-volume measure alongside the reported revenue increase.

Management said metal-price pass-through and price-variation clauses accounted for perhaps one-third of the 135% year-on-year revenue rise. It said London Metal Exchange aluminium prices were roughly one-fifth higher year on year and copper prices were about 40% higher, inflating the revenue base under such contracts. Management nevertheless said cable kilometres and conductor tonnes produced and dispatched rose by more than 60% to 70% year on year.

What did data-centre cables contribute to Diamond Power's growth?

Diamond Power's new data-centre cable line contributed Rs 242 crore, or 23%, of Q2 FY2027 revenue after having no contribution in Q1 FY2027. Management said the copper cable line supplied engineering, procurement and construction contractors working on hyperscale data centres, naming L&T, AurionPro, Sterling Wilson and Blue Star. The new line therefore became a material component of revenue within one quarter of its launch.

In September 2026, Diamond Power recorded production of more than Rs 575 crore, excluding goods and services tax, and delivered Rs 240 crore of data-centre cables in that month alone. That September delivery was nearly equal to the Rs 242 crore data-centre contribution for the full Q2 period. Management said the line has installed copper capacity of 1,500 tonnes a month and is being scaled to 2,500 tonnes a month.

The data-centre addition came alongside continued sales from the established cable and conductor portfolio. Management said Q2 revenue included 40% cables and 31% conductors, while data-centre cables made up the remaining share. This changed the mix from Q1 FY2027, when the newly commissioned data-centre line had generated no revenue, although management did not disclose separate data-centre cable volume or margin figures.

How did Diamond Power's profit and cost ratios change in Q2 FY2027?

Diamond Power reported Rs 133 crore of earnings before interest, tax, depreciation and amortisation, including other income, in Q2 FY2027, up 189% year on year, with a 12.9% margin. Profit after tax was Rs 108 crore, compared with Rs 28 crore a year earlier, and earnings per share were Rs 1.87. For H1 FY2027, earnings before interest, tax, depreciation and amortisation were Rs 218 crore and profit after tax was Rs 166 crore.

H1 FY2027 profit after tax of Rs 166 crore exceeded the Rs 158 crore earned in the whole of FY2026. Management also compared the latest quarter with Q3 FY2025, when revenue was Rs 307 crore and profit after tax was Rs 6 crore. On that comparison, Q2 FY2027 revenue was 3.4 times the earlier quarterly level and profit after tax was 18 times higher, following what management described as eight consecutive quarters of growth.

Employee and other expenses declined to 5.7% of revenue in Q2 FY2027 from 8.2% a year earlier, helping the earnings before interest, tax, depreciation and amortisation margin increase by 240 basis points. Contribution margin as a percentage of revenue declined to 16.9% from 18.7%, however. Management attributed that decline to higher aluminium prices increasing the revenue denominator under price-variation contracts while absolute contribution per tonne was protected.

Other income of Rs 18 crore in Q2 FY2027 was treasury income from qualified institutional placement funds held in fixed deposits, according to management. Finance cost was Rs 12 crore, which management said was almost entirely letter-of-credit discounting and bank charges associated with higher business volumes. It said tax remained negligible because of carried-forward losses.

Why did Diamond Power move from net debt to net cash?

Diamond Power moved from Rs 527 crore of net debt on March 31, 2026 to Rs 572 crore of net cash on September 30, 2026, while net worth changed from negative Rs 604 crore to positive Rs 764 crore. Management attributed the six-month change to a Rs 1,614 crore qualified institutional placement, complete repayment of promoter loans and operating profits. The qualified institutional placement was completed in July, with funds received in August.

The balance-sheet transition was not solely the result of the Rs 108 crore Q2 FY2027 profit after tax. Management said the Rs 1,614 crore equity raise was undertaken to meet a minimum-shareholding requirement, and that promoter loans had been fully repaid. The reported movement from negative net worth at March-end to positive net worth at September-end also reflects those capital and repayment actions, in addition to H1 FY2027 profit after tax of Rs 166 crore.

Diamond Power prepaid the Rs 501 crore cash consideration under its resolution plan in September 2026, one year before the September 2027 deadline. Management said this generated a prepayment discount of almost Rs 9.5 crore and completed all planned payments under the plan. It said the company had exited the National Company Law Tribunal process in its entirety, though lender no-objection certificates and releases of charges remained in process.

Conclusion

Diamond Power's Q2 FY2027 figures show simultaneous operating and balance-sheet changes: revenue reached Rs 1,032 crore, profit after tax rose to Rs 108 crore, and data-centre cables added Rs 242 crore of quarterly revenue. The financial position changed from Rs 527 crore of net debt at March-end to Rs 572 crore of net cash at September-end, supported by the Rs 1,614 crore qualified institutional placement, promoter-loan repayment and profits.

The next disclosed milestones are the planned expansion of copper capacity from 1,500 tonnes to 2,500 tonnes a month, completion of lender no-objection certificates and charge releases, and fresh bank lines that management said are being arranged following eligibility for a credit rating. Management has already prepaid the Rs 501 crore resolution-plan consideration ahead of its September 2027 deadline.