Diamond Power Infrastructure Limited reports ₹572 crore net cash

Diamond Power Infrastructure Limited reported ₹571.9 crore of net cash at 30 September 2026, reversing net debt of ₹526.9 crore at 31 March 2026, after its July 2026 qualified institutional placement, repayment of promoter and inter-corporate deposits, and early payment of ₹501 crore due under its Resolution Plan.

How did DPIL move from net debt to net cash?

DPIL moved to ₹571.9 crore of net cash, excluding Resolution Plan bonds, because cash and bank balances including fixed deposits reached ₹648.1 crore while interest-bearing borrowings fell to ₹76.1 crore at 30 September 2026. At 31 March 2026, it had ₹103.8 crore of cash and ₹630.7 crore of such borrowings, resulting in ₹526.9 crore of net debt.

The net-cash position improved by ₹1,098.9 crore in the six months to 30 September 2026. Cash and fixed deposits increased by ₹544.3 crore and interest-bearing borrowings declined by ₹554.6 crore. DPIL excludes Resolution Plan bonds from this measure and reports them separately.

DPIL said term debt at the listed entity was nil at 30 September 2026. However, its consolidated borrowings included a ₹33 crore Bank of Maharashtra term loan at its subsidiary rod mill. The ₹76.1 crore consolidated borrowing figure also included remaining borrowings other than the Resolution Plan bonds.

What did DPIL use the QIP proceeds for?

DPIL used its July 2026 qualified institutional placement, or QIP, principally for working capital, debt repayment and Resolution Plan-related payments. The six-month funds-flow bridge recorded ₹1,579 crore of net QIP proceeds within total sources of ₹1,836 crore, alongside ₹193 crore of operating profit before working capital and ₹64 crore of other adjustments.

The largest application was a ₹683 crore working-capital build, followed by ₹391 crore for promoter and inter-corporate deposit repayment. DPIL also repaid ₹164 crore of bank and Resolution Plan borrowings, spent ₹51 crore on capital expenditure and paid ₹3 crore of interest and lease costs. These uses left ₹544 crore added to cash and fixed deposits.

The QIP was completed on 29 July 2026 through the allotment of 7.11 crore shares at ₹227 each to 56 allottees. DPIL reported gross proceeds of ₹1,613.97 crore and net proceeds of ₹1,572.62 crore after ₹41.35 crore of issue expenses. By 30 September 2026, it had utilised ₹1,097.78 crore, or 68% of gross proceeds.

What is the status of DPIL’s promoter loans and Resolution Plan?

DPIL substantially repaid promoter and inter-corporate deposits, with the balance falling to ₹13.8 crore at 30 September 2026 from ₹404.4 crore at 31 March 2026. The presentation describes ₹391 crore of promoter and inter-corporate deposits as cleared from QIP proceeds during Q2 FY27, or the quarter ended September 2026.

DPIL also prepaid ₹501 crore of Resolution Plan cash consideration in September 2026, one year before the stated 30 September 2027 deadline. Management said the payment was made in full and included prepayment discounts. It also said all plan payments were complete, while lender no-objection certificates and release of charges remained in process.

The 2022 Resolution Plan had converted residual lender debt into ₹1,899 crore of face-value bonds carrying a 0.001% coupon and redeemable in 2052. DPIL said the bonds were carried at ₹45.6 crore present value plus a deferred liability under Indian Accounting Standards. That treatment is why the bonds are outside DPIL’s stated net-debt calculation.

How did the funding change DPIL’s net worth and working capital?

DPIL’s consolidated net worth became positive at ₹763.9 crore on 30 September 2026, compared with negative ₹604.2 crore on 31 March 2026. The presentation attributes the ₹1,368.1 crore increase to the ₹1,613.97 crore QIP and ₹166 crore of H1 FY27 profit. DPIL said this was its first positive net-worth position since the Resolution Plan.

Working-capital balances rose during the same six months. Trade receivables, net of customer advances, increased to ₹850.1 crore from ₹373.9 crore, while inventories rose to ₹574.5 crore from ₹369.2 crore. Trade payables increased by ₹76 crore to ₹426.6 crore, compared with the ₹683 crore working-capital build shown in the H1 FY27 funds-flow bridge.

Receivables were shown after customer advances of ₹19.4 crore at 30 September 2026, versus ₹90.3 crore at 31 March 2026. Total assets increased by ₹808.1 crore to ₹3,211.7 crore. The figures indicate that QIP funding was deployed into operating assets as well as debt reduction and cash balances.

Conclusion

DPIL’s reported balance-sheet reset combined a ₹1,098.9 crore improvement in net cash with a ₹1,368.1 crore increase in net worth in the six months to 30 September 2026. The July 2026 QIP financed working-capital expansion, repayment of promoter and inter-corporate deposits, lower borrowings and the early completion of the Resolution Plan cash obligation.

The next disclosed milestones are deployment of the ₹516.19 crore of unutilised QIP proceeds, including ₹260.92 crore for working capital and ₹172.01 crore of capital-expenditure balance held in term deposits at 30 September 2026. DPIL also said lender no-objection certificates and release of charges were in process, while fresh bank lines were being tied up for rating eligibility.