Q1 2027 Diamond Power Infrastructure Ltd Earnings Call

August 14, 2026

Speaker #1: Ladies and gentlemen, you have been connected for the Diamond Power Infrastructure Limited conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you have been connected for the Diamond Power Infrastructure Limited conference call.

Speaker #1: Please stay connected. The call will begin shortly. Ladies and gentlemen, good day, and welcome to the Diamond Power Infrastructure Limited Q1 FY27 earnings conference call.

Operator: Ladies and gentlemen, good day and welcome to Diamond Power Infrastructure Limited Q1 FY27 Earnings Conference Call hosted by Monarch Networth Capital. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. Before we begin, a brief disclaimer.

Speaker #1: Hosted by Monarch Network Capital. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: Before we begin, a brief disclaimer: This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call.

Operator: This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Mohit Surana from Monarch Networth Capital. Thank you, and over to you, sir.

Speaker #1: These statements are not guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Mohit Surana from Monarch Network Capital.

Speaker #1: Thank you, and over to you, sir.

Speaker #2: Good morning, everyone. Welcome to Diamond Power's Q1 FY27 earnings call. Joining us today are Mr. Amit Bhatnagar, Head of Corporate Strategy; Mr. Pawan Lohiya, Chief Financial Officer; and Mr. Umesh Chhaya, Full-Time Director.

Mohit Surana: Good morning, everyone. Welcome to Diamond Power's Q1 FY27 Earnings Call. Joining us today are Mr. Amit Bhatnagar, Head Corporate Strategy, Mr. Pawan Lohiya, Chief Financial Officer, and Mr. Umesh Chhaya, Whole-Time Director. With that, I will hand over the call to Mr. Bhatnagar for his opening remarks. Over to you, sir.

Speaker #2: With that, I will hand over the call to Mr. Bhatnagar for his opening remarks. Over to you, sir.

Speaker #3: Good morning, everyone, and thank you for joining us. I'm Amit Bhatnagar, Head of Corporate Strategy at Diamond Power. On behalf of our directors and the entire leadership team, it is a pleasure to welcome you—and to do so at what is genuinely an inflection point in our story.

Amit Bhatnagar: Good morning, everyone, and thank you for joining us. I am Amit Bhatnagar, Head of Corporate Strategy at Diamond Power. On behalf of our directors and the entire leadership team, it is a pleasure to welcome you and to do so at what is genuinely an inflection point in our story. For those of you meeting Diamond Power for the first time, let me place us in a single sentence. We are one of India's fully, truly integrated manufacturers of power transmission and distribution products in the cable and conductor segment, spanning the full voltage range from low voltage to extra high voltage, all produced at a single 110-acre integrated complex in Vadodara in the state of Gujarat. From wire rod through to finished extra high voltage cable, the entire value chain fits under one roof.

Speaker #3: For those of you meeting Diamond Power for the first time, let me place us in a single sentence: we are one of India's fully, truly integrated manufacturers of power transmission and distribution products in the cable and conductor segment, spanning the full voltage game from low voltage to extra high voltage.

Speaker #3: All produced at a single 110-acre integrated complex in Vadodara, in the state of Gujarat. From wire-on through to finished extra high voltage cables, the entire value chain sits under one roof.

Speaker #3: Very few companies in our industry, anywhere in the world, carry that degree of integration, and it is the foundation of everything I will describe to you this morning.

Amit Bhatnagar: Very few companies in our industry, anywhere in the world, carry that degree of integration, and it is the foundation of everything I will describe this morning to you. Let me begin where it matters the most, with the quarter's results and with the conditions in which we have earned them. This year, India's monsoon arrived early and arrived hard. From the very first week of June, Gujarat saw heavy and sustained rainfall, and a large number of our customer installation sites were flooded. For a business where so much medium voltage cable is laid, it is the most disruptive weather imaginable. Trenching and cabling simply cannot proceed when the ground is under water. It impacts our product, and also impacts our product mix as conductor and LV cables are not impacted much. Our first quarter is always the most seasonally demanding of the year.

Speaker #3: Let me begin where it matters the most, with the quarter's results and with the conditions in which we have earned them. This year, India's monsoon arrived early and arrived hard, from this very first week of the first week of June, Gujarat saw heavy and sustained rainfall, and a large number of our customers' installation sites were flooded.

Speaker #3: For a business where so much medium voltage cable is laid, it is the most destructive weather imaginable. Trenching and cabling simply cannot proceed when the ground is underwater.

Speaker #3: It impacts our product and also impacts our product mix, as conductor and LV cables are not impacted much. Our first quarter is always the most seasonally demanding of the year.

Speaker #3: This year, it was more demanding than most. However, we have met our internal targets of ₹700 crores. And against this backdrop, we more than doubled our top line for the quarter ended 30th June, 2026. On a consolidated basis, revenue was ₹690 crores—that is roughly $83 million—up 129% year on year.

Amit Bhatnagar: This year, it was more demanding than most. However, we have met our internal target of 300 crores. Against this backdrop, we more than doubled our top line. For the quarter ended 30 June 2026, on a consolidated basis, revenue was INR 690 crores. That is roughly $83 million, up 129% year on year. EBITDA was INR 85 crores, up 172% on a margin of 12.3%, and an expansion of nearly 200 basis points. Profit after tax was INR 58.5 crores, up 191%, at a net margin of 8.5%. Earning per share for the quarter was INR 1.11 on a face value of INR 1. I would ask you to hold these three growth figures together. Revenue up 129%, EBITDA up 172%, profit up 191%, because the pattern within these is the real message. Our profit is growing considerably faster than our revenue. That is operating leverage doing precisely what it should.

Speaker #3: EBITDA was ₹85 crore, up 172%, on a margin of 12.3%, and an expansion of nearly 200 basis points. Profit after tax was ₹68.5 crore, up 191%, at a net margin of 8.5%.

Speaker #3: Earnings per share for the quarter was ₹1.11 on a face value of ₹1. I would ask you to hold these three growth figures together: revenue up 129%, EBITDA up 172%, profit up 191%, because the pattern within these is a real message.

Speaker #3: Our profit is growing considerably faster than our revenue. That is operating leverage doing precisely what it should. As our newer and higher value production lines mature and carry most of the load, we have delivered growth of this magnitude through a flood-affected monsoon quarter—this is not a seasonal accident.

Amit Bhatnagar: As our newer and higher value production lines mature and carry most of the load, to have delivered growth of this magnitude through a flood-affected monsoon quarter is not a seasonal accident. It is the evidence of the structural momentum now the Diamond Power business is gathering. Let me say a word specifically about margins, because there is an important story beneath the headline. Raw materials, aluminum and copper both stood firm through the quarter, and the portion of our order book is executed at prices agreed before this input boom, so the pass-through as per percentage of our sales reaches us with a lag. Neither of these is structural. Mix normalizes as the high voltage lines fill throughout the year, and metal cost is over any reasonable horizon, a pass-through in the way our contracts are written.

Speaker #3: It is evidence of the structural momentum that the Diamond Power business is now gathering. Let me say a word specifically about margins, because there is an important story beneath the headline.

Speaker #3: Raw materials, aluminum and copper, both stood firm through the quarter, and a portion of our order book is executed at prices agreed before this input moved, so the pass-through as a percentage of our sales reaches us with a lag.

Speaker #3: Neither of these is structural. Mixed fertilizers at the high voltage lines fill throughout the year, and metal cost is, over any reasonable horizon, a pass-through in the way our contracts are written.

Speaker #3: We are completely back to back on passing the increases in metal and polymers to all our customers. What I would draw your attention to is, despite these gross margin pressures, our EBITDA margin still expanded by close to 200 basis points to 12.3%.

Amit Bhatnagar: We are completely back to that on passing the increases in metal and polymer to all our customers. What I would draw your attention to is, despite these gross margin pressures, our EBITDA margin still expanded by close to 200 basis points to 12.3%. That is precisely the operating leverage I described earlier. As revenue more than doubled our fixed cost base, people, plant, overheads, power was spread on a far larger top line, and the gain in absorption more than offset the compression higher on the P&L. Put plainly, we absorbed a weaker gross margin and still delivered a materially stronger operating margin. As mix and utilization both improve from here, we expect the gross margin headwind to ease and the operating leverage to compound on the top of it. You will certainly see its impact in the next three quarters.

Speaker #3: That is precisely the operating leverage I described earlier. As revenue more than doubled our fixed cost base people, plant, overheads, power, was spared a far large on a farther far larger top line, and the gain in absorption more than offset the compensation compression higher on the P&L.

Speaker #3: To put it plainly, we absorbed a weaker gross margin and still delivered a materially stronger operating margin. As mix and utilization both improve from here, we expect the gross margin headwind to ease and the operating leverage to compound on top of it.

Speaker #3: You will certainly see its impact in the next three quarters. One brief note on the accounts, so nothing surprises you: our tax charge for this quarter is negligible, as we continue to carry forward accumulated losses from the period preceding our resolution plan.

Amit Bhatnagar: One brief note on the accounts, so nothing surprises you. Our tax charge for this quarter is negligible, as we continue to carry forward accumulated losses from the period preceding our resolution plan. A benefit that will taper over time as profitability continues, but is there with us at least for the next two years. A second note on the comparative. In our prior accounts, you would see an exceptional item, a provision for depreciation relating to earlier periods, which had not been charged in the years surrounding our resolution plan and was recognized as a one-time catch-up once the plan was implemented. I flag it to you for a simple reason. It is a non-cash, prior period accounting adjustment that sits below our operating line. It does not touch our EBITDA. It does not reflect the earning power of the business as it runs today. It does not reoccur.

Speaker #3: A benefit that will taper over time as profitability continues, but is with us at least for the next two years. A second note on the comparative.

Speaker #3: In our prior accounts, you would see an exceptional item of provision for depreciation related to earlier periods, which had not been charged in the years surrounding our resolution plan, and was recognized as a one-time catch-up once the plan was implemented.

Speaker #3: I like it for a simple reason: it is a non-cash prior period accounting adjustment that sits below our operating line. It does not touch our EBITDA.

Speaker #3: It does not reflect the earning power of the business as it runs today. It does not reoccur. When you compare this quarter, the truer read of the underlying business is the operating level, where none of that noise is present.

Amit Bhatnagar: When you compare this quarter against this line, the cleanest read of the underlying business is the operating level where none of that noise is present. More importantly, the auditor qualification, which was on the books till now, stands resolved, and the numbers are without any qualification. I would also remiss not to record a milestone reached during this quarter. We completed a QIP placement raising INR 1,640 crores, close to $195 million. Achieving full minimum public shareholding compliance and welcoming marquee institutions into our register. To every investor who participated, thank you so much. You place your confidence in Diamond Power at a formative moment in its journey. We are acutely

Speaker #3: More importantly, the auditor qualification which was on the books till now stands resolved, and the numbers are without any qualification. I would also like to note that a milestone was reached during this quarter.

Speaker #3: We completed a QIP placement, raising ₹1,640 crore—₹14 crore, close to $195 million US dollars—achieving full minimum public shareholding compliance and welcoming marquee institutions into our register.

Speaker #3: To every investor who participated, thank you so much. You placed your confidence in Diamond Power at a formative moment in its journey.

Speaker #4: Sorry to interrupt. Your voice was weak. Can you just repeat the last 10 seconds?

Operator: Sorry to interrupt. Your voice was breaking.

Amit Bhatnagar: Okay.

Operator: Can you just repeat the last 10 seconds?

Speaker #3: You placed your confidence in Diamond Power at a formative moment in its journey. We are acutely conscious of the responsibility your capital carries, and we intend to honor it through our performance.

Amit Bhatnagar: You placed your confidence in Diamond Power at a formative moment in its journey. We are acutely conscious of the responsibility your capital carries. We intend to honor it through our performance. Our last two years' performance shows how quarter by quarter we have delivered, and we strongly believe in delivery rather than any forward-looking strong assurances. Let me be precise about the timing of that capital, because it shapes how these results should be read. The quarter you have just heard, INR 6 billion of revenue, profit up by 191%, delivered before a single rupee of the QIB proceed was put to work. Q1 was earned on the balance sheet as it stood without the benefit of that fresh capital. Those funds are now being deployed into the capacity I am about to describe, and the impact on our numbers is not a first or second quarter event.

Speaker #3: Our last two years' performance shows how, quarter by quarter, we have delivered, and we strongly believe in delivery rather than any forward-looking, strong assurances.

Speaker #3: And let me be precise about the timing of that capital, because it shapes how these results should be read. The quarter you have just heard—₹630 crores of revenue, profit up by 191%—was delivered before a single rupee of the QIP proceeds was put to work.

Speaker #3: Q1 was earned on the balance sheet as it stood, without the benefit of that fresh capital. Those funds are now being deployed into the capacity.

Speaker #3: I'm about to describe, and the impact on our numbers is not a first or second quarter event. It converts into P&L as the new lines commission and load.

Amit Bhatnagar: It converts into P&L as the new lines commission and load, which means it will end squarely on the Q3 and Q4. Put simply, the clearest evidence of what this business can do is still ahead of us in the H2. Let me now turn to the strategy behind these numbers, because the results you have just heard are the visible surface of a very deliberate shift the company is going through. Diamond Power is moving decisively towards a leadership position in the medium voltage and EHV segment of India's cabling conductor market. If you take one thing from this call, I would like it to be that. The logic is straightforward. A very large share of our industry volume sits at the commoditized scale, LV cable, where competitors are many, and differentiation is thin.

Speaker #3: Which means it lands squarely in the third and fourth quarter. Put simply, the clearest evidence of what this business can do is still ahead of us in the second half.

Speaker #3: Let me now turn to the strategy beneath these numbers, because the results you have just heard are the visible surface of a very deliberate shift the company is going through.

Speaker #3: Diamond Power is moving decisively towards a leadership position in the medium-voltage and extra-high-voltage segment of India's cable and conductor market. If you take one thing from this call, I would like it to be that.

Speaker #3: The logic is straightforward. A very large share of our industry volume sits at the commoditized end—low voltage cables—where competitors are many and differentiation is thin.

Speaker #3: The enduring value sits higher up. The voltage ladder—medium voltage from 11 kV to 66 kV, and extra high voltage above that. Where qualification is difficult, the field of credible suppliers is narrow, and the realizations are materially better.

Amit Bhatnagar: The enduring value sits higher up the voltage ladder, medium voltage from 11 to 66, and EHV above, where qualification is difficult, the field of credible suppliers is narrow, and the realizations are materially better. That is where Diamond Power has chosen to build, and where we intend to lead. This is not an aspiration. It has been financed, engineered, and installed on the ground. Let me be specific about the capacities coming into place. First and foremost, we have just approved in the board two aluminum corrugation lines that will materially expand our 66 kV cable capacity and 132 kV cable capacity. This lets us convert capacity from 33 kV up to 66 and 132, where margins are lower, moving our cable mix decisively up the value curve.

Speaker #3: That is where Diamond Power has chosen to build, and where we intend to lead. This is not an aspiration. It has been financed, engineered, and installed on the ground.

Speaker #3: And let me be specific about the capacities coming into place. First and foremost, we have just approved in the board two aluminum corrugation lines.

Speaker #3: That will materially expand our 66 kV cable capacity and 132 kV cable capacity. This lets us convert capacity from 33 kV up to 66 and 132, where margins are lower, moving our cable mix decisively up the value curve.

Speaker #3: It is important to understand that, with the same CCV lines, by adding two more aluminum corrugation lines, with a minimal capex of ₹17 crore, we have opened up 66 kV and 132 kV capacity substantially by compromising one line of 33 kV, and added more value-added products. So, our return on investment becomes stronger.

Amit Bhatnagar: It is important to understand that with the same CCV lines, by adding two more aluminum corrugation lines with a minimal CapEx of INR 17 crores, we have opened up 66 and 132 capacity substantially by compromising one line of 33 kV and added more value-added products, so our return on investment becomes stronger. Secondly, I am very happy to share that we are in the final stages of ordering our sixth CCV line, and this is purely based on the demand which we are seeing and also the inputs and questions from our investors as to what are your plans on increasing the capacity. We order one more line, and that should be commissioned before December 2027. The most important part here is we are not going to do any additional civil CapEx or utility CapEx because our existing infrastructure has a scope and provision to add one CCV line.

Speaker #3: Secondly, I'm very happy to share that we are in the final stages of ordering our sixth CCV line. And this is purely based on the demand which we are seeing and also the inputs and questions from our investors as to what are your plans on increasing the capacity.

Speaker #3: We will order one more line, and that should be commissioned before December 2027. The most important part here is we are not going to do any additional civil capex or utility capex, because our existing infrastructure has the scope and provision to add one CCV line. Only the equipment will come in.

Amit Bhatnagar: The most important part here is we are not going to do any additional civil CapEx or utility CapEx because our existing infrastructure has a scope and provision to add one CCV line.

Amit Bhatnagar: Only the equipment will come in. There are no additional utility and infrastructure costs involved. It deepens our capacity at precisely the end of the market where we intend to lead. Third, our two additional medium voltage cable lines are under installation, and I am happy to tell you they are on schedule. This is the workhorse capacity for 11 to 220 kV segment that forms the largest single block of our order book. Its timely commissioning is central to our execution plan for the year. Taken together, these are not incremental additions. They are the physical build-out of a company positioning itself to lead in the medium and EHV. Capacity coming online, in step with the order book already concentrated in end of the product. There is a further engine that I want to highlight, our new LV cable project.

Speaker #3: There are no additional utility and infrastructure costs involved. It depends on our capability, at precisely the end of the market where we intend to lead.

Speaker #3: And third, our two additional medium voltage cable lines are under installation, and I'm happy to tell you they are on schedule. This is the workhorse capacity for the 11 to 220 kV segment that forms the largest single block of our order book.

Speaker #3: And it is timely commissioning is central to our execution plan for the year. Taken together, these are not incremental additions. They are the physical build-out of a company positioning itself to lead in the medium and extra high voltage capacity coming online in step with the order book already concentrated at the end of the product.

Speaker #3: There is a further engine that I want to highlight: our new LV cable project. We are converting our old rod mill and legacy conductor plant into a modern low voltage and control cable facility for both aluminum and copper, with a brownfield upgrade and no civil construction cost. At full utilization, it adds around 42,000 kilometers of LV capacity, with revenue potential approaching ₹1,880 crores.

Amit Bhatnagar: We are converting our old rod mill and legacy conductor plant into a modern low voltage and controlled cable facility for both aluminum and copper, a brownfield upgrade with no civil construction cost. At full utilization, it adds around 42,000 kilometers of LV capacity, with revenue potential approaching INR 1,880 crores. Two things make it strategically important. First, it is deliberately built for copper LV cables to suit data centers. Diamond Power is on the forefront of getting data center orders in the country. We are concentrated more on medium voltage cable, so we do not want the LV part of the business to go from us. More importantly, not only at medium voltage, secondly, it broadens our base. A high volume LV engine sitting beneath our medium voltage and extra voltage franchise is a meaningful contributor to the bottom line. Commercial production is expected from financial year 2027/2028.

Speaker #3: Two things make it strategically important. First, it is deliberately built for copper LV cables to suit data centers. Diamond is on the forefront of getting data center orders in the country.

Speaker #3: We are concentrating more on medium voltage cable, so we do not want the LV part of the business to go from us. More importantly, not only at medium voltage—secondly, it broadens our base, with a high-volume LV engine sitting beneath our medium voltage and extra high voltage franchise, and a meaningful contributor to the supply edge.

Speaker #3: Commercial production is expected from the financial year 2027-2028. We will commission it before March. The order book is the foundation of our confidence. As on 11th August 2026, it stood at ₹3,688 crores.

Amit Bhatnagar: We will commission it before March. The order book is the foundation of our confidence. As on 11 August 2026, it stood at INR 3,688 crores, roughly $445 million, and about two times of last year's revenue across 12 product lines, and it continues to grow with over INR 1,000 crore of fresh wins since April. I am also very happy to tell you that in the last six to seven days itself, we have taken orders worth INR 400 crores. We report orders above INR 50 crores to the market. Therefore, you have seen that we have reported two major orders, one from Rajesh Power Services Limited for disaster management, and second order coming in from the Electricity Board. Other miscellaneous orders in last seven days itself, we have added INR 400 crores. The medium voltage then is its largest single component.

Speaker #3: Roughly $445 million, and about double last year's revenue, across 12 product lines. And it continues to grow, with over ₹1,000 crore of fresh wins since April.

Speaker #3: I'm also very happy to tell you that in the last six to seven days itself, we have taken orders worth ₹400 crores. We report orders of about ₹50 crores to the market.

Speaker #3: Therefore, you have seen that we have reported two major orders: one from Rajesh Power for disaster management, and a second order coming in from the electricity board.

Speaker #3: Other miscellaneous orders in the last seven days itself, we have added ₹400 crore. The medium voltage band is its largest single component. Our ₹435 crore data center order sits within it.

Amit Bhatnagar: Our INR 435 crore data center order sits within it, and roughly INR 845 crores out of this INR 3,688 is to be executed in the next year. So for the current year, we are holding an order book of around INR 2,800 crores to be delivered before March, along with the fact that we are adding between INR 275 to INR 325 crores of order every month. So we are confident that when we begin the next year, we would have got the next year targets more than 50% to 60% order book in place. Let me direct about the full year. We delivered INR 690 crores in the toughest, most flood-affected part of our calendar. The new capacity comes on stream through the year and the order book underwrites the ramp-up.

Speaker #3: And roughly ₹845 crores out of this ₹3,688 crores is to be executed in the next year. So, for the current year, we are holding an order book of around ₹2,800 crores to be delivered before March, along with the fact that we are adding between ₹275 to ₹325 crores of orders every month.

Speaker #3: So, we are confident that when we begin the next year, we will have already achieved more than 50 to 60 percent of our next year's target order book in place.

Speaker #3: So let me direct about the full year. We delivered ₹690 crore in the toughest, most flood-affected part of our calendar. The new capacity comes on stream through the year.

Speaker #3: And the order book underwrites the ramp-up. On that basis, we are firmly on track to deliver a full-year top line in the range of ₹4,300 to ₹4,500 crore.

Amit Bhatnagar: On that basis, we are firmly on track to deliver a full year top line in the range of INR 4,300 to INR 4,500 crores, and to do so while holding the margin profile you have seen this quarter, not sacrificing it for the volume. Let me put some structure under this range, because I know it implies a meaningful step from INR 690 crores first quarter. Three things bridge the gap. One of them asks for heroics. The first is seasonality, simply reversing. Our Q1 is every year our weakest, and this year, the early monsoon made it weaker still. If the rain would have come on time, you could have seen an incremental INR 70, 20 crores top line and the corresponding EBITDA on the books. Our H2 is consistently our strongest, so the base is built from it.

Speaker #3: And to do so, while holding the margin profile you have seen this quarter, not exercising it for the volume. Let me put some structure around this range.

Speaker #3: Because I know it implies a meaningful step from 690 crores in the first quarter. Three things bridge the gap. One of them has to be heroic, so first is seasonality.

Speaker #3: Simply reversing, our first quarter is, every year, our weakest. And this year, the early monsoon made it weaker still. If the rain had come on time, you could have seen an incremental ₹70 to ₹80 crore top line and the corresponding EBITDA on the books.

Speaker #3: Our second half is consistently our strongest, so the base is built from it. It is the first quarter that was impacted by design and by weather.

Amit Bhatnagar: It is a Q1 that was by design and by weather, the low point of the year. The second is utilization. We entered the year running the plant well below its capacity, with several lines only partially loaded and the newest one still in red. As the two aluminum corrugation lines and the two medium voltage lines commission, and the load at the existing lines fill up against a growing order book, supported by the large fundraise which we have, our utilization rises materially. Because so much of our cost base is fixed, each incremental point of utilization converts to revenue and margin very efficiently. To reach INR 4,300 to INR 4,500 crores range, the balance sheet of the year needs to run at close to twice the pace of the Q1. Measured against the capacity we already have installed and commissioning.

Speaker #3: The low point of the year. The second is utilization. We entered the year running the plant well below its capacity, with several lines only partly loaded and the newest one still in rent.

Speaker #3: As the two aluminum corrugation lines and the two medium voltage lines are commissioned, and the load on the existing lines fills up against a growing order book supported by the large fundraise which we had, our utilization rises materially.

Speaker #3: And because so much of our cost base is fixed, each incremental point of utilization converts to revenue and margin very efficiently. To reach the ₹4,300 to ₹4,500 crore range, the balance sheet for the year needs to run at close to twice the pace of the first quarter.

Speaker #3: Measure against the capacity we already have installed and commissioning. That is a step up in the utilization, not a stretch of our capacity. And the third is the order book.

Amit Bhatnagar: That is a step up in utilization, not a stretch of our capacity. The third is the order book I have described a moment ago. With INR 3,688 crores already in hand, the great majority of it scheduled for the execution within the financial

Speaker #3: I have described a moment ago, between ₹688 crore already in hand. The great majority of it is scheduled for execution within the financial year and later.

Speaker #4: Oh, sorry to interrupt you.

Operator: Sorry to interrupt you.

Speaker #3: No, the fundraise yeah.

Amit Bhatnagar: And a funded. Yeah.

Speaker #4: Yeah. Now your line is clear.

Operator: Yeah. Now your line is clear.

Speaker #3: Capacity coming on stream, utilization climbing off a low base, and a funded order book converting into dispatch—that is what underwrites ₹4,300 crore to ₹4,500 crore.

Amit Bhatnagar: Capacity coming on stream, utilization climbing off a low base, and a funded order book converting into dispatch. That is what underwrites INR 4,300 crore to INR 4,500 crore, and why we hold it with confidence. Let me place all of this in a wider context. Because we are operating a genuinely powerful and durable cycle, a leading share across our listed peers. India is in a structural, capital-led expansion of its power infrastructure, and several independent engines are pulling demand at once. The execution buildup is adding new lines at scale to evacuate renewable power from the great generation parks, hurry being foremost among them, which require extra voltage, cable and conductor. Aging distribution grids are being reinforced and moved underground. Squarely, medium voltage demand is coming. Smart city mandates require underground urban cabling.

Speaker #3: And why we hold it in confidence. Let me place all of this in a wider context, because we are operating a genuinely powerful and durable cycle.

Speaker #3: A leading shed across our listed peers. India is in a structural, capital net expansion of its power infrastructure, and several independent engines are pulling demand at once.

Speaker #3: The next commission buildup is adding new lines at scale to evacuate renewable power from the great generation parts, are you being foremost among them, which require extra high voltage cable and conductor.

Speaker #3: Aging distribution grids are being reinforced, and more underground squarely medium voltage demand is coming. Smart city mandates require underground urban cabling. Climate resilience has become a procurement driver in its own utilities, as utilities in flood- and cyclone-exposed regions convert overhead networks to underground systems.

Amit Bhatnagar: Climate resilience will become a predominant driver in its own utilities, as utilities in flood and cyclone exposed regions convert overhead networks to the underground systems, to keep lights on through exactly the weather we saw this quarter, and the data centers sit on the top of it all. India's installed capacity base is set to expand several folds, and every megawatt carries a substantial cable requirement. Most importantly, these are not abstractions. Let me give you two very recent concrete proofs that demand is converting into orders. The first is a 1,370 kilometer Medium voltage order from Gujarat Distribution Utility through Rajesh Power Services Limited. Supplying underground cable for disaster management and urban scheme across the coastal belt. Precisely the climate resilience demand I have described. And a firm order we are already executing.

Speaker #3: To keep the lights on through exactly the weather we saw this quarter, and the data centers sit on the top of it all. India's installed capacity base is set to expand severalfold, and every megawatt carries a substantial cable requirement.

Speaker #3: Most importantly, these are not abstractions. Let me give you two very recent, concrete proofs that demand converting into orders. The first is a 1,370-kilometer medium voltage order from the Gujarat distribution utility through Rajesh Power.

Speaker #3: Supplying underground cable for disaster management and urban schemes across the coastal belt precisely meets the climate resilience demand I have described. And a firm order we are already executing.

Speaker #3: The second is a letter of intent from a distribution company in the UP Electricity Board for a high-tension cable across multiple utilities. A win that opens one of India's largest distribution markets to us at the higher voltage end.

Amit Bhatnagar: The second is a letter of intent from a distribution company in the Uttar Pradesh Power Corporation Limited for a high tension cable across multiple utilities, a win that opens one of India's largest distribution markets to us at the higher voltage end. Coastal Gujarat and Uttar Pradesh, exactly the medium voltage, high voltage business our strategy is to build the win. None of this is delivered by capacity and order alone. It is delivered by people, and we have been building our team with the same deliberation. This quarter, we welcome Mr. Umesh Chhaya to our leadership team as an industry veteran and retail specialist with more than three decades in the cabling industry, and a recognized authority on costing, pricing, and distribution that sells. His mandate is to build our distribution reach and our retail franchising with a particular focus on MV and EHV categories where we intend to lead.

Speaker #3: Coastal Gujarat, coastal Gujarat, and Uttar Pradesh—exactly. The medium voltage/high voltage business, our strategy is to build to win. None of this is delivered by capacity and order alone.

Speaker #3: It is delivered by people, and we have been building our team with the same deliberation. This quarter, we welcome Mr. Umesh Chaya to our leadership team as an industry veteran and retail specialist with more than three decades in the cabling industry.

Speaker #3: And a recognized authority on costing, pricing, and distribution net sales. This mandate is to build our distribution reach and our retail franchisee base, with a particular focus on MV and EHV categories where we intend to lead.

Amit Bhatnagar: His mandate is to build our distribution reach and our retail franchising with a particular focus on MV and EHV categories where we intend to lead. Behind him, the company has more than 15 leaders at AVP and VP levels across our functions, and we are now assembling a dedicated, sizable export team to take our products to US, Middle East, and Africa as our certifications come through. Several further appointments will join the company over the next two quarters and strengthen our team. For a company not long ago was working its way through a resolution plan, this quarter says something simple. The turnaround is not merely complete, it is compounding, and it is deliberate. We are deeply grateful for your confidence in Diamond Power, and we are determined to reward it. Thank you. I will now hand back the mic to the moderator.

Speaker #3: Behind him, the company has more than 15 leaders at AVP and VP levels across our functions, and we are now assembling a dedicated, sizable export team to take our products to the U.S., Middle East, and Africa as our certifications come through.

Amit Bhatnagar: Behind him, the company has more than 15 leaders at AVP and VP levels across our functions, and we are now assembling a dedicated, sizable export team to take our products to US, Middle East, and Africa as our certifications come through. Several further appointments will join the company over the next two quarters and strengthen our team. For a company not long ago was working its way through a resolution plan, this quarter says something simple. The turnaround is not merely complete, it is compounding, and it is deliberate. We are deeply grateful for your confidence in Diamond Power, and we are determined to reward it. Thank you. I will now hand back the mic to the moderator.

Speaker #3: Several further appointments will join the company over the next two quarters and strengthen our team. This is for a company that not long ago was working its way through a resolution plan.

Speaker #3: This quarter says something simple: the turnaround is not merely complete, it is deliberate. We are deeply grateful for your confidence in Diamond Power, and we are determined to reward it.

Speaker #3: Thank you. I will now hand back the mic to the moderators.

Speaker #4: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone.

Operator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Rohan Kalle from SageOne. Please go ahead.

Speaker #4: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #4: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the lineup: Rohan Kale from Incred, please go ahead.

Speaker #5: Yeah, hi team. Congrats on a strong set of numbers. I just have a couple of questions. We currently have three audios for CTV lines and four MV tailing lines.

Rohan Kalle: Yeah. Hi, team. Congrats on the strong set of numbers. I just have a couple of questions. We currently have three rod mills, four CCV lines, and four MV trailing lines, which are operational. By when will the fourth rod mill start production, and the incremental one trailing line and one CCV line underway, when will these start production?

Speaker #5: Which are operational by when? When will the fourth audio start production, and the incremental one tailing line and one CTV line underway—when will these start production?

Speaker #3: So, the audio should start by October 15th. The incremental MV silent line should start somewhere around September 15th. And the CCB line will start in March 2027.

Amit Bhatnagar: The rod mills should start by 15 October. The incremental MV trailing line should start somewhere by 15 September, and the CCV line will start in March 2027.

Speaker #5: Okay. And so, in general, this six CCB line that has received an incremental approval, with a purchase order being targeted this month.

Rohan Kalle: Okay. So in general, the sixth CCV line that has received an in-principle approval with the purchase order being targeted this month, is that order placed? Or rather, if it is placed in this month, by when can the delivery come for this line?

Speaker #5: Is that order placed or or rather by when can if it is if it is placed in this month by when can the delivery come for this line?

Speaker #3: So, we are getting delivery assurances for August next year. And there is one line which is available in the market. We should place the order within this month.

Amit Bhatnagar: We are getting delivery assurances for August next year. There is one line which is available in the market. We should place the order within this month. We have arrived at a price already for the line, and once it is delivered, it shall take us four to five months to commission it. So we are confident that it will get commissioned by December 2027.

Speaker #3: We have arrived at a price already for the line. And once it is delivered, it shall take us four to five months to commission it.

Speaker #3: So we are confident that we will be commissioned by December 2027.

Speaker #5: Okay, last one for now and then I'll come back to you. On the export side, what is maybe the timeline for the first export sale that we can expect, and which geographies would we be targeting first? And maybe, what kind of products can we target here?

Rohan Kalle: Okay. Last one for now, then I will come back in queue. On the export side, what is maybe the timeline for the first export sale that we can expect, and which geographies would we be targeting first, and maybe what kind of products can we target here? What are we building maybe in terms of exports over the next few years, if any guidance you can share?

Speaker #5: What are we building, maybe in terms of exports, over the next few years, if any guidance you can share?

Speaker #3: So

Speaker #4: Sorry to interrupt you, sir, but we are unable to hear you.

Operator: Sorry to interrupt you, sir, but we are unable to hear you.

Amit Bhatnagar: The export at present is very negligible, and we are building a team for exports. We have got some key people who have joined us and are joining us in the next 90 days. On the other end, our certification process for various markets, especially targeting Europe and the US, are on track. We are confident that Q3 and Q4, we will see a good export inflow of orders. For this year, we have targeted that we will get an order book of at least INR 500 crores before we end the year, and this shall be our first year. We will target conductor business and medium voltage business in the current year.

Speaker #3: The export at present is very negligible, and we are building a team for exports. We have got some key people who have joined us and are joining us in the next 90 days.

Speaker #3: On the other hand, our certification process for various markets, especially targeting Europe and the US, is on track. So we are confident that in quarter three and quarter four, we will see a good export inflow of orders.

Speaker #3: For this year, we've targeted that we will get an order book of at least ₹500 crore before we end the year. And this shall be our first year.

Speaker #3: So, we will target the conductor business and medium voltage business in the current year.

Speaker #5: Understood. Also, just a quick one on talent. So, you've been hiring top executives from the industry—your latest addition is Mr. Chaya.

Rohan Kalle: Understood. Sir, just a quick one on talent. You have been hiring top executives from the industry. Your latest addition, Mr. Chhaya, would be a big addition in terms of, at least within your senior leadership team. What gaps do you see are still left, maybe across functions like sales, marketing, production, and so on?

Speaker #5: That would be a big addition, at least within your senior leadership team. What gaps do you see are still left, maybe across functions like sales, marketing, production, and so on?

Speaker #3: I will not use the word "gap" because we are appropriately manned today. But when we say that we will grow from ₹1,900 crore to ₹4,500 crore in the year, and next to ₹7,500 crore.

Amit Bhatnagar: I will not use the word gap, because we are appropriately manned today. But when we say that we will grow from INR 1,900 crores to INR 4,500 crores, end the year next to INR 7,500 crores, we need to build a team. We need to strengthen the team at every stage. Most of the hires are going to be in the higher part of the middle management and one or two areas we will get leaders also. The major focus will be on higher side of the middle management so that we are able to deliver the quantum increase which we are planning.

Speaker #3: We need to build a team. We need to strengthen the team, and every state. So most of the hires are going to be in the higher part of the lower middle management.

Speaker #3: And in one or two areas, we will get leaders also. So the major focus will be on the higher side of middle management so that we are able to deliver the quantum increase which we are planning.

Speaker #4: Thank you, sir. I'll get back to you. Thank you. Thank you. Ladies and gentlemen, the management line has been dropped. Please stay connected while we reconnect.

Rohan Kalle: Sure, sir. I will follow back with you. Thank you.

Operator: Thank you. Ladies and gentlemen, the management line has been dropped. Please be connected while we reconnect. Ladies and gentlemen, thank you for patiently waiting. We have the management back with us. We have a reminder to all participants, if you wish to ask any questions, you may press star and one on your touch tool. We have our next question from the line of Mahesh Patil from ICICI Securities. Please go ahead.

Speaker #4: Ladies and gentlemen, thank you for patiently waiting. We have the management back with us. A reminder to all participants: if you wish to ask any questions, you may press star and one on the touch-tone keypad.

Speaker #4: We have our next question from the lineup. Mahesh Patil from ICICI Securities, please go ahead.

Speaker #5: Yeah. Hi, sir. Congrats on a very good set of numbers. So my first question is on the STLS side. You have mentioned in one of the slides that STLS is one of the products for data centers, right?

Mahesh Patil: Yeah. Congrats on a very good set of numbers. My first question is on the HTLS side. You have mentioned in one of the slides that HTLS is one of the products for data centers, right? Just want to understand where does it go exactly, because from what I understand, HTLS is largely used for reconnecting, right?

Speaker #5: So, I just want to understand—where does it go exactly? Because, from what I understand, STLS is largely used for reconnecting, right?

Speaker #3: Correct. So STLS is used for reconductoring—that is where the answer is—because the data centers are being put up in urban areas, cities like Hyderabad and New Bombay, where the existing transmission lines have to be upgraded or the current carrying capacity has to be increased when a data center comes in.

Amit Bhatnagar: Correct. HTLS used for reconnecting, that is where the answer is, because the data centers are being put up in urban areas, cities like Hyderabad, New Bombay, where the existing transmission lines have to be upgraded, or the current carrying capacity has to be increased where data center comes in. To give you an example of the New Bombay data center coming up of Adani, they are upgrading a line with an HTLS conductor. Same way is the case in Hyderabad data center of Microsoft, that the incoming transmission line has to be upgraded. It cannot be relayed because of the geographical condition. So one of the important uses of HTLS is going to be for data centers.

Speaker #3: So, to give you an example of the New Bombay data center coming off of Adani, they are upgrading a line with an STLS conductor.

Speaker #3: The same is the case at the Hyderabad data center of Microsoft, where the incoming transmission line needs to be upgraded; it cannot be relayed because of the geographical conditions.

Speaker #3: So, one of the important uses of STLS is going to be for data centers.

Speaker #5: Okay. And so, my second question is more from the industry side for AL59. So, we have seen AL59 production has gone up significantly over the last couple of years, right?

Mahesh Patil: Okay. And sir, my second question is more from the industry side for AL-59. We are seeing AL-59 production has gone up significantly over last couple of years, right? Just want to understand in terms of split, roughly how much of it is coming from new line versus the states upgrading their existing lines? If you can just roughly give us the split.

Speaker #5: So, just want to understand, in terms of state, roughly how much of it is coming from new lines versus the state kind of upgrading their existing lines?

Speaker #5: You can just roughly give us the state.

Speaker #3: Yeah, so AL59 demand is not coming from upgradation projects. It is primarily coming from new transmission lines in the PDCB segment and by the state distribution utilities.

Amit Bhatnagar: Yeah. AL-59 demand is not coming from upgradation projects. It is majorly coming from new transmission lines in the PGCIL segment and by the state distribution of utilities. To the extent that Diamond Power has stopped producing ACSR conductor, which is a traditional conductor, because most of the customers who were buying ACSR have now shifted to AL-59. Earlier, traditionally, ACSR used to be the main product of the conductor industry. Now AL-59 is almost 70% of the market.

Speaker #3: To the extent that Diamond has stopped producing ACSR conductors, which are traditional conductors, because most of the customers who were buying ACSR have now shifted to AL59.

Speaker #3: Earlier, traditionally, ACSR used to be the main product of the conductor industry. Now, AL59 is almost 70% of the market.

Speaker #5: Okay sir. Great. Thank you.

Mahesh Patil: Okay, sir. Great. Thank you.

Speaker #4: Thank you. We have our next question from the lineup. Ajit Setty from Eico Quantum Solutions, please go ahead.

Operator: Thank you. We have our next question from the line of Ajit Sethi from Eiko Quentin Solutions. Please go.

Speaker #2: Yeah, thank you for the opportunity. Sir, with net worth still negative and having now raised around ₹1,600 crores through QIP, will this infusion be enough to make DI Cap's net worth positive?

Ajit Sethi: Yeah. Thank you for the opportunity. Sir, with net worth still negative and having now raised around INR 1,600 crores through QIP, will this infusion be enough to make Diamond Power's net worth positive? If yes, by when? Out of the INR 1,600 crores raised, how much is going towards clearing promoter debt legacy liability versus funding new capacity?

Speaker #2: And if yes, by when? And out of this ₹1,600 crores raised, how much is going towards clearing promoter debt legacy liability versus funding new capacity?

Speaker #3: Okay. So on network power, why don't you share?

Amit Bhatnagar: On net worth front, why don't you share?

Speaker #6: So, as on 30th June '26, our net worth is negative by ₹922 crore. But after this QIP process, from QIP it is ₹1,614 crore. As on today, our net worth is positive by ₹691 crore.

Pawan Lohiya: As on 30 June 2026, our net worth is negative by INR 922 crores. But after this QIP, proceeds from QIP, it is INR 1,614 crores. As on today, our net worth is positive by INR 691 crores.

Speaker #3: So, yeah. Now, coming to the usage of the funds from QIP, it is very clearly mentioned that we will be spending ₹130 crore on our eligible expansion.

Amit Bhatnagar: Now coming to the usage of the funds from QIP, it is very clearly mentioned that we will be spending INR 130 crores on our LV cable expansion, INR 74 crores on our present balancing equipment part, INR 325 crores for general corporate purposes. We would be returning back INR 350 crores of the unsecured loan to the promoters, and the remaining will go towards long-term funding of the working capital. Around INR 750 crores will go towards infusion towards working capital.

Speaker #3: ₹74 crore on our present balancing equipment part, ₹6,325 crore for general corporate purposes. We would be returning back ₹350 crore of the unsecured loan to the promoters.

Speaker #3: And the remaining will go towards long-term funding of the working capital. So, around ₹750 crore will go towards infusion towards working capital.

Speaker #2: Great, so that's all. And sir, in May 2026, a PMLA discharge or release of ₹10 billion plus of fixed assets and ₹9.78 billion of pre-NCLT receivables.

Ajit Sethi: Great. And sir, on May 2026, PMLA discharged or released INR 10 billion plus of fixed assets and INR 9.78 billion of pre-NCLT receivable. Has the company started using or monetizing this? And how much of this receivable do you realistically expect to recover in cash?

Speaker #2: Has the company started using or monetizing this? And how much of this receivable do you realistically expect to recover in cash?

Speaker #3: See, the asset was already under use for the last four years because under PMLA, possession was not taken. It was given to the new management.

Amit Bhatnagar: See, the asset was already under use since last four years because under PMLA, possession was not taken. It was given to the new management. What has happened is now legally it has got discharged under IBC's clean slate theory, it is basically the right of the new management to take over the assets. Whatever little legal hurdle was there got settled in May. Coming to the receivables, there are 957 crores of legacy receivables on the books. Post this order, we have put a special team in place comprising of one senior legal hand, one senior guy from accounts and three juniors. We are doing a first stage evaluation on how much can be recovered. At this stage it seems around 300 crores can be recovered for a period of next one year to 18 months.

Speaker #3: What has happened is, now legally it has got discharged. Under IBC, the clean slate theory is basically the right of the new management to take over the assets.

Speaker #3: So, whatever little legal hurdle was there got settled in May. Coming to the receivables, there are ₹957 crore of legacy receivables on the books.

Speaker #3: Post this order, we have put a special team in place comprising one senior legal hand, one senior guy from accounts, and three juniors.

Speaker #3: And we are doing a first-stage evaluation on how much can be recovered. At this stage, it seems around ₹300 crore can be recovered over the next one year to 18 months.

Speaker #3: And that is where we will focus, and we feel we'll be able to get it.

Amit Bhatnagar: That is where we will focus and we feel we will be able to get it.

Ajit Sethi: Okay. Sir, regarding the audit qualification on depreciation of PPE and the company has indicated that the issue is resolved. How should we think about the depreciation expense going forward?

Speaker #2: Okay. And sir, regarding the audit qualification on depreciation of EP, the company has indicated that the issue is resolved. So, how should we think about the depreciation expense going forward?

Speaker #3: So, the depreciation that you are seeing in the first quarter will be the depreciation going forward, save whatever additions we are going to do. Over time, depreciation will be very less.

Amit Bhatnagar: The depreciation which you are seeing first will be the depreciation going forward. Same, whatever additions we are going to do, with that the depreciation will be better.

Speaker #2: Okay. And sir, in a previous presentation, we have indicated that our existing capacity at peak could generate around ₹1,400 crore of revenue. Is the upcoming new capacity already factored into this estimate, or will it be incremental to this ₹1,400 crore revenue potential?

Ajit Sethi: Okay. And sir, in a previous presentation, we have indicated that our existing capacity at peak could generate around INR 1,400 crores of revenue. Is the upcoming new capacities already factored into this estimate, or it will be incremental to this INR 14,000 crore revenue potential?

Speaker #3: No, it is factored in, and accordingly, we have said additions. It will be factored in.

Amit Bhatnagar: No, it is factored and accordingly we have said these additions, it will be factored in.

Speaker #2: Okay. And sir, just a clarification from the previous call and the call before. So, we expect ₹7,500 crore in FY28—have you mentioned that?

Ajit Sethi: Okay. And sir, just a clarification from the call before. So we expect INR 7,500 crore in FY28. Have you mentioned that?

Speaker #3: Yes. Yes.

Amit Bhatnagar: Yes.

Speaker #2: And can we expect to do ₹14,000 crore in FY29 with full utilization?

Ajit Sethi: Can we expect to do a INR 14,000 crore in FY29 full utilization?

Speaker #3: No. No. No. No. No.

Amit Bhatnagar: No.

Speaker #2: Okay. And so, we were expecting somewhere around 75% utilization in the next three years. So, is there pride in FinTech?

Ajit Sethi: We were expecting somewhere around 75% utilization in next three years. Is there guidance in that?

Amit Bhatnagar: We are targeting 1,000 crores. We are a growing company. The market is growing. We are now getting financially stronger. We have virtually zero debt on the books. If we see some opportunities going forward, organic, inorganic, some products doing better, three years is a long time. We are open in terms of how we can ramp up and scale up. We are always on the lookout.

Speaker #3: Yeah, I think we are a growing company. The market is growing. We are now getting financially stronger. We have virtually zero debt on the books.

Speaker #3: So, if we see some opportunities going forward—organic, inorganic, some products doing better—three years is a long time. We are open in terms of how we can ramp up and scale up.

Speaker #3: We are always on the lookout.

Speaker #4: Thank you, sir. Ajit, we request you to rejoin for any follow-up questions. We have our next question from the lineup. Nishant Bagrecha from Incred Research, please go ahead.

Operator: Thank you, sir. Ajit, we request you to rejoin for any follow-up questions. We have our next question from the line of Nishant Bagrecha from Vikret Research. Please go ahead.

Speaker #5: Yeah, thank you for the opportunity and for taking us through the business strategy in detail. Sir, I have specific questions regarding your guidance, the order book execution, and also a few questions around the broader industry opportunity.

Nishant Bagrecha: Thank you for the opportunity and for taking us through the business strategy in detail. Sir, I have specific questions regarding your guidance, the order book execution, and also a few questions around the broader industry opportunity. Firstly, regarding your near-term guidance for FY27 of around 3,500 crores, which implies the remaining three quarters need to average roughly around 100 to 150 crores per quarter versus 690 crores in Q1. You have explained that seasonality utilization ramp-up and order book execution breach is there. Could you help us understand the phasing a little better? Should we expect a more gradual ramp-up through Q2 and a sharper acceleration in H2 of current financial year, or should Q2 itself see a meaningful step up?

Speaker #5: So firstly, regarding your near-term guidance for FY27 of around ₹4,500 crores, which implies that the remaining three quarters need to average roughly around ₹1,000 to ₹1,250 crores per quarter versus ₹690 crores in one quarter.

Speaker #5: So, you have explained that seasonality, utilization ramp-up, and order book execution bridge this gap. Could you help us understand the phasing a little better?

Speaker #5: Should we expect a more gradual ramp-up through Q2 and a sharper acceleration in the second half of the current financial year? Or should Q2 itself see a meaningful step-up?

Speaker #3: No, it is always gradual. If you see, last year also, every quarter we grew almost 50%. And seasonality in our industry is very clear: the first quarter is rain-affected.

Amit Bhatnagar: No, it is always gradual. If you see last year also, every quarter we grew almost 50%. Seasonality in our industry is very clearly that the Q1 is rain affected, Q2 is partially affected. The Q3 and the Q4 is always the strongest. In fact, the fourth one is always the biggest quarter because the projects have to be commissioned before March. The customers are willing to list the material faster. Infrastructure projects have their deadlines. Capacity we already have on our side. It is going to be a gradual ramp-up, but we clearly see that we will be able to meet the target.

Speaker #3: The second quarter is partially affected. The third and the fourth quarters are always the strongest. In fact, the fourth one is always the biggest quarter because the projects are to be commissioned before March.

Speaker #3: The customers are willing to lift the material faster. Infrastructure projects have their deadlines. Capacity we already have on our side. So, it is going to be a gradual ramp-up, but we clearly see that we will be able to meet the

Speaker #5: Sure. And just a follow-up on this question. So, FY26 utilization was, let's say, 34% for cables and 20% for conductors. With the current order book and the additional lines coming on stream, where do you see utilization ending for FY27 and FY28, particularly for cables and conductors?

Nishant Bagrecha: Sure. Just to follow up on this question, FY26 utilization was, let's say, 34% for cables and 20% for conductors. With the current order book and also the additional lines coming on stream, where do you see the utilization ending for FY27 and FY28, particularly for cables and conductors?

Speaker #3: So, conductors should be around 40%, and cables should be around 50–52%.

Amit Bhatnagar: Conductors should be around 40% and the cables should be around 50%, 52%.

Speaker #5: This is for FY20 7?

Nishant Bagrecha: This is for FY27?

Amit Bhatnagar: Seven.

Speaker #3: 7.

Speaker #5: Okay. And for 28?

Nishant Bagrecha: Okay, and for 2028?

Speaker #3: So, 28, our LV cable, around ₹2,000 crore of capacity, will come into the picture. Our additional CC line, which can make around ₹600 crore, will come into the picture.

Amit Bhatnagar: 2028, our LV cable around INR 2,000 crore of capacity will come into picture. Our additional CCV line, which can make around INR 600 crore, will come into picture. We will see utilization going up in conductor up to 60% and the cable also will be around 60%.

Speaker #3: So we will see a going up in conductors up to 60%, and the cable also will be around 60%.

Speaker #5: Okay, okay. And my next question is on margins. You indicated that you expect to hold the 1–2% margin profile while delivering the FY27 revenue guidance.

Nishant Bagrecha: Okay. My next question is on margins. You indicated that you expect to hold the 11% to 12% margin profile, while delivering the FY27 revenue guidance. Should we think of 11% to 12% as the flow of FY27 or could the mix improvement towards

Speaker #5: So should we think of 11–12% as the flow for FY27, or put the mix improvement towards—yeah.

Speaker #3: Our guidance is between 11% to 13%. This again depends upon the metal price. If you see, in the month of May, aluminium was $3,800.

Amit Bhatnagar: Our guidance is between 11% to 13%. This again depends upon the metal price. If you see in the month of May, aluminum was $3,800, and by the end of June, it came down to $3,000. 22% or 23% margin went down, and it went up from 1 April to 22 May by 20%. EBITDA is always a product of sale price versus the COGS and the expense. The absolute better decision becomes constant when you have a price escalation contract with you. That is why we put in a range at 11% to 13%. For Q1, the sale of LV cable and conductor as a percentage to the total sales is higher because of the reasons I have explained to you. Medium voltage cable and extra high voltage cables are always delivered at the project site.

Speaker #3: And by the end of June, it came down to 3,000. So 22 or 23% margin went down, and it went up from 1st April to 22nd May by 20%.

Speaker #3: So EBITDA is always a product of sale price versus the COGS and the expense. So the absolute contribution becomes constant when you have a price escalation contract with you.

Speaker #3: So that's why we put in a range at 11% to 13%. And in Q1, the sale of LV cable and conductor as a percentage of the total sales is higher because of the reasons I've explained to you.

Speaker #3: Medium voltage cables and extra voltage cables are always delivered at the project site. They cannot be stored in warehouses at the customers' locations because they will not have the ability to then move them.

Amit Bhatnagar: They cannot be stored in warehouses at the customers because they will not have the ability to then move them. As you go to Q2, Q3, Q4, the product mix will change a little bit. Medium and extra high voltage product of take will increase as a percentage to sale, so EBITDA will be stronger.

Speaker #3: So as you go to Q2, Q3, Q4, the product mix will change a little bit. Medium and extra voltage product optic will increase as a percentage to sales, so EBITDA will be stronger.

Speaker #5: Okay. So the mix improvement towards 66 or 132 kV or EHV cables and higher-value conductors will take margins further from current levels, right?

Nishant Bagrecha: Okay. The mix improvement towards 66/132 kV or EHV cables and higher value conductors will take margins further from current levels, right?

Speaker #5: Is my understanding correct? Yeah. And I have one question on the data center cable orders. So, you have already gotten ₹435 crores of data center cable orders, and you are setting up the next line—the next copper LV facility—partly with the data center in mind.

Amit Bhatnagar: Right.

Nishant Bagrecha: Is my understanding correct? I have one question on the data center cable orders. You have already won INR 435 crores of data center cable orders, and you are setting up the next copper LV facility partly with the data center in mind. How large do you see this opportunity becoming for Diamond Power over the next two to three years, and proportion of your future cable revenue could potentially come from data centers?

Speaker #5: So how large do you see this opportunity becoming for Tycabs over the next two to three years, and what proportion of your future cable revenue could potentially come from data centers?

Speaker #3: So, because we have this large order, any prequalifications or any questions regarding our affiliate are to—so we have Edge going to the other data center projects and talking about ourselves.

Amit Bhatnagar: Because we have this large order, any pre-qualifications, any questions regarding our ability, you will. We have an edge going to the other data center projects and talking about ourselves. Internally, we have given the team a target of getting at least INR 1,000 crores of data center orders before 31 March 2027. In the current year, we are expecting that our data center sales will contribute around INR 750 crores before the month of March. Next year, we will give them a target of getting around INR 1,500 crores. 20% is what we want to get from data center business current and next year.

Speaker #3: So internally, we have given the team a target of getting at least ₹1,000 crores of data center orders before 31st March 2027. In the current year, we are expecting that our data center sales will contribute around ₹750 crores before the month of March. Next year, we will give them a target of getting around ₹1,500 crores.

Speaker #3: So, 20% is what we want to get from the data center business currently, in the next year.

Speaker #5: Okay. Okay. And my last question is on the industry. As you mentioned, the 1,370 kilometers of underground MV cables order in the opening remarks.

Nishant Bagrecha: Okay. My last question is on the industry. As you mentioned, the 1,370 kilometers of underground MV cables order in the opening remark. Could you give us the approximate value of this order and the execution timeline, and whether you see similar climate resilience or undergrounding cabling opportunities emerging from the other states as well?

Speaker #5: Could you give us the estimated value of this order and the execution timeline, and whether you see similar climate resilience or underground cable cabling opportunities emerging from other states as well?

Speaker #3: So, Gujarat has come out with a project which is called ROBUST. The project cost is ₹22 crore. The first set of contractors last week—hello?

Amit Bhatnagar: Gujarat has come out with a project which is called Robust. The project cost is INR 22,000 crores.

Operator: Sorry to interrupt, sir. Your line was not clear. Do you want me to?

Speaker #5: Thank you. Your line was not clear. You weren’t able to finish your question.

Speaker #3: Is it clear now?

Amit Bhatnagar: Is it clear now?

Speaker #5: Yes. It's clear.

Operator: Yes, sir. It's clear.

Speaker #3: Yes. So Gujarat is expected to flow ₹22,000 crores of disaster management orders in the next three years, out of which ₹16,000 crores is going to be the cost of 11 kV and 33 kV medium voltage cables.

Amit Bhatnagar: Gujarat is expected to float 22,000 crores of disaster management orders in the next three years. Out of this, 16,000 crore is going to be the cost of 11 kV and 33 kV medium voltage cable. Presently, 43 tenders got finalized to around 19 contractors. This order from Rajesh Power for 1,370 kilometers related to Paschim Gujarat Vij Company Limited is the first orders of it. Now we are expecting that by the end of the year, the first 4,000, 5,000 crores worth of orders will get finalized in Gujarat. Gujarat is one example. There are at least nine to 10 states in India which are on the seacoast, which have initiated this process. Tenders in Odisha have come out, tenders in West Bengal have come out. Tenders in Karnataka are under the process of coming out. Telangana and Andhra Pradesh.

Speaker #3: Presently, 43 tenders have been finalized to around 19 contractors. And this order from Rajesh Power for 1,370 kilometers, related to passing through Gujarat, is the company's first order from them.

Speaker #3: So now we are expecting that by the end of the year, the first four to five thousand crore worth of orders will get finalized in Gujarat.

Speaker #3: Now, Gujarat is one example. There are at least nine to ten states in India which are on the sea coast and have initiated this process.

Speaker #3: Tenders in Orissa have come out. Tenders in West Bengal have come out. Tenders in Karnataka are in the process of coming out. Telangana and Andhra Pradesh—Andhra Pradesh, very aggressively, the tenders are coming out.

Amit Bhatnagar: Andhra Pradesh, very aggressively the tenders are coming out. I am confident that, as I always tell investors, that whatever was the traditional demand of medium voltage cable till 2022, equivalent five new markets have come into the picture. One is disaster management, vertical urbanization, Indian Railways, smart city projects, and renewable energy. This is one of the most important part.

Speaker #3: So I'm confident that, as I always tell investors, whatever was the traditional demand of medium voltage cable up to 2022, the equivalent of five new markets have come into the picture.

Speaker #3: One is disaster management, vertical urbanization, Indian Railways, smart city projects, and renewable energy. So this is one of the most important parts.

Speaker #5: Awesome. Thank you. That's very helpful. So, I have a couple of other questions, but I'll fall back into Q1.

Nishant Bagrecha: Got it, sir. Thank you. That's very helpful. Sir, I have a couple of other questions, but I will follow back in the queue.

Speaker #2: Thank you. A reminder to all the participants: if you wish to ask any questions to the management, you may press star and one on your touchscreen.

Operator: Thank you. A reminder to all the participants. If you wish to ask any questions to the management, you may press star and one on your touchphone. We have our next question from the line. Raman KV from SageOne Investments. Go ahead.

Speaker #2: We have our next question from the line. Rahman K.V. from CQF Investments. Go ahead.

Speaker #5: Hello sir, can you hear me?

[Analyst] (SageOne Investments): Hello, sir. Sen here.

Raman KV: Hello, sir. Sen here.

Speaker #3: Yes I can.

Amit Bhatnagar: Yes, I can.

Speaker #5: Sir, I have a couple of questions. One is with respect to Capex per line. Currently, how many lines are operational? That's the first question. Secondly, what's our Capex cost per line, and how much revenue per line, on average, can we generate?

[Analyst] (SageOne Investments): Sir, I have a couple of questions. One with respect to CapEx per line. Currently, how many lines are operational? One is that. What is our CapEx cost per line, and how much revenue per line on an average can we do?

Raman KV: Sir, I have a couple of questions. One with respect to CapEx per line. Currently, how many lines are operational? One is that. What is our CapEx cost per line, and how much revenue per line on an average can we do?

Speaker #3: So, we have four CQV lines operational. We have four Silent Base lines operational. One CQV line is installed but will be commissioned by March. One Silent Base line will be commissioned by the 15th of September.

Amit Bhatnagar: We have four CCV lines operational. We have four silane-based lines operational. One CCV line installed but will be commissioned by March. One silane-based line will get commissioned by 16 September. One line, which we are ordering at present, will get commissioned by December 2027. The cost of a silane-based line is between INR 15 to 20 crores. A cost of a CCV line costs around INR 50 crores. Again, it depends on what size denominator rating you are going to do. The one I am ordering will cost me around INR 50 crores only for the line. The utilities, civil construction, other things cost equal around INR 50 crores. A CCV line is broadly INR 100 crores, where you can make up to 66 and 132. If you go for a bigger line of 220 and 400, the cost will go to around INR 150 crores.

Speaker #3: One line, which we are ordering at present, will get commissioned by December 2027. The cost of a silent base line is between ₹15 to ₹20 crore.

Speaker #3: The cost of a CQV line is around ₹50 crores. Again, it depends on what size denominator or rating you are going to use.

Speaker #3: The one I am ordering will cost me around ₹50 crore. Only for the line, the utility is civil construction. Other things cost equally, around ₹50 crore.

Speaker #3: So, a CQV line is broadly ₹100 crore, where you can make up to 66 or 132. If you go for a bigger line of 220 or 400, the cost would go up to around ₹150 crore.

Speaker #3: The expected revenue from one CQV line, again, depends on what product you are making. If you are making 66 KV cable, you can make around 150 kilometers—it's a single-core cable—per month.

Amit Bhatnagar: The expected revenue from one CCV line, it again depends on what product you are making. If you are making 66 kV of cable, you can make around 150 kilometers. It is a single core cable per month, and one kilometer would, again depending on copper, aluminum, type of coloration, but would be broadly INR 30 lakhs is a reasonable price you can consider. So around INR 45 to 50 crores is the revenue from one line.

Speaker #3: And one kilometer would again, depending on copper, aluminium, type of corrugation, but would be broadly ₹30 lakh. Is a reasonable price you can consider.

Speaker #3: So, around 45 to 50 crores is the revenue from one line.

Speaker #5: Understood, sir. Thank you for that. My second question is with respect to our debt. What will be our peak debt going forward, by '28?

[Analyst] (SageOne Investments): Understood, sir. Thank you for that. My second question is with respect to our debt. What will be our peak debt going forward, like in 2028?

Raman KV: Understood, sir. Thank you for that. My second question is with respect to our debt. What will be our peak debt going forward, like in 2028?

Speaker #3: Yes, at present, we have one LC of ₹60-75 crore and a CC limit of ₹5 crore from one bank. We are not utilizing it at this time because, as you are aware, we have a lot of QIP funds with us.

Amit Bhatnagar: Yeah. At present, we have INR 75 crore LC, INR 5 crore CC limit from one bank.

[Analyst] (SageOne Investments): Okay.

Raman KV: Okay.

Amit Bhatnagar: Now we are not utilizing it at this point of time because you are aware we have a lot of QIP funds with us. Whatever money is required to achieve the target for the current year, we will not need any borrowing. Yes, we are looking at how we can get vendor financing, how we can get dealer financing, because that two parts of the business, if we can efficiently finance, support our vendors, support our dealers, we will improve our cash flow and in process will improve our margins. Next year, INR 7,500 crores. We are estimating that in the current year if we earn around INR 500 crores plus, and for the next year, the incremental cash is already available with us.

Speaker #3: Whatever money is required to achieve the target for the current year, we will not need any borrowing. Yes, we are looking at how we can get vendor financing.

Speaker #3: How we can get dealer financing, because that's two parts of the business: we can efficiently finance and support our vendors, support our dealers. We will improve our cash flow and, in the process, will improve our margins.

Speaker #3: Next year, ₹7,500 crores. We are estimating that in the current year, if we earn around ₹500 crores plus, for the next year the incremental cash is already available with us.

Speaker #3: So up to 2027–28, we don't expect to have any substantial debt on the books of the company. Unless we get some good opportunity, or we look for some other additional plans, then I cannot tell you.

Amit Bhatnagar: Up to 2027, 2028, we don't expect to have any substantial debt on the books of the company unless we get some good opportunity or we look for some other additional plans, then I cannot tell you. But as of now, I think mentally, the management and the professionals here are very clear that up to March 2028, our strategy, our capacity, and our route is very clear as on date.

Speaker #3: But as of now, I think mentally, the management and the professionals, we are very clear that up to March 2028, our strategy, our capacity, and our route is very clear as on date.

Speaker #5: Sir, but if my understanding is right, as of March 2026, in your balance sheet, we have around long-term borrowings of ₹2,400 crores.

[Analyst] (SageOne Investments): Sir, but if my understanding is right, as of March 2026, in your balance sheet, we have around long-term borrowing of INR 2,400 crores.

Raman KV: Sir, but if my understanding is right, as of March 2026, in your balance sheet, we have around long-term borrowing of INR 2,400 crores.

Speaker #3: So, basically, that was Rs. 1,900 crores of bonds—0.01% bonds, payable after 30 years. These bonds are owned by the promoter. The net part was a Rs. 400 crore unsecured loan from the promoter.

Amit Bhatnagar: Basically, that was INR 1,900 crores of bonds, 0.01% bonds payable after 30 years. These bonds are owned by the promoter. The next part was a INR 400 crore unsecured loan from the promoter, which has been paid back post QIP. So there is no debt as such other than the residual value of those bonds is discounted on a net present value. They stood at INR 47 crores in March 2026.

Speaker #3: which has been paid back post QIP, so there is no debt as such, other than the residual.

Speaker #1: The value of those bonds is discounted on a net present value basis. They stood at ₹47 crores in March 2026. These are 0.01% coupon rate bonds, right? Yes, this was the unsustainable debt of the company.

[Analyst] (SageOne Investments): 0.01% coupon rate bonds, right?

Raman KV: 0.01% coupon rate bonds, right?

Amit Bhatnagar: Yes. Payable after 30 years. This was the unsustainable debt of the company in the NCLT plan, which was converted to bonds payable after 30 years, and the bonds are now acquired by the promoter from the lender. These are unsecured promoter-held bonds. If discounted on net present value, their value is INR 47 crores.

Speaker #1: The plan, which was converted to bond payable after 30 years. And the bonds are now acquired by the promoter from the lenders.

Speaker #1: So these are unsecured promoter held bonds . If discounted on net present value , the value is 47 crore , sir . Thank you for Yeah

[Analyst] (SageOne Investments): Understood, sir.

Raman KV: Understood, sir.

Amit Bhatnagar: Sorry.

[Analyst] (SageOne Investments): Thank you so much.

Raman KV: Thank you so much.

Amit Bhatnagar: Yeah.

[Analyst] (SageOne Investments): My question is done. Thank you. Thank you so much.

Raman KV: My question is done. Thank you. Thank you so much.

Speaker #2: My question is, thank you. Thank you so much. Thank you, ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to only one per participant.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants as a conference, please limit your questions to only one per participant. Should you have a follow-up question, we request you to rejoin the queue. I repeat, participants, please restrict yourself to only one question per participant. Should you have a follow-up question, we request you to rejoin the queue. Next question is from the line of Sanjay Satpathy from Ampersand. Please go ahead.

Speaker #2: Should you have a follow up question , we request you to leave your . I repeat participants , please restrict yourself to one question per participant .

Speaker #2: Should you have a follow-up question, we request you to rejoin the queue. The next question is from the line of Sanjay Satpathy from Ampersand.

Speaker #2: Please go ahead

Sanjay Satpathy: Hi, sir. Thanks a lot for the opportunity. I just wanted to confirm the guidance that you have given. You have given about INR 4,300 crore to INR 4,500 crore revenue current year and INR 7,500 crore next year. Is that correct, sir?

Sanjaya Satapathy: Hi, sir. Thanks a lot for the opportunity. I just wanted to confirm the guidance that you have given. You have given about INR 4,300 crore to INR 4,500 crore revenue current year and INR 7,500 crore next year. Is that correct, sir?

Speaker #1: Thanks a lot for the opportunity. I just wanted to confirm the guidance that you were given. So, you're guided to about ₹4,300 crore to ₹4,500 crore revenue for the current year, and ₹7,500 crore for next year.

Speaker #1: Is that correct , sir ? Correct . And so we noticed that most other cable companies , they reported significant quarter on quarter growth in this quarter .

Amit Bhatnagar: Correct.

Sanjay Satpathy: Okay. And sir, we noticed that most other wire and cable companies, they reported significant quarter-on-quarter growth in this Q1, and you said that it is because of rain and couple of other things that you did not grow. Can you just give some more color in this context of how your peers are doing versus what you are doing?

Sanjaya Satapathy: Okay. And sir, we noticed that most other wire and cable companies, they reported significant quarter-on-quarter growth in this Q1, and you said that it is because of rain and couple of other things that you did not grow. Can you just give some more color in this context of how your peers are doing versus what you are doing?

Speaker #1: One. And you said that it is because of rain and a couple of other things, but you did not go. So can you just give some more color in this context of how your peers are doing versus what you are doing?

Speaker #1: So, you are to understand our product mix. Most of the listed companies in India are 85% low voltage, 10% medium, and other products.

Amit Bhatnagar: You have to understand our product mix. Most of the listed companies in India are 85% low voltage, 15% is medium and other products. Diamond Power is the other way around. We are 70%, 80% of our capacity is medium and extra high voltage. Our products are not used during rain. We deliver the products on the project site. If you compare us with other companies which are making copper wires, industrial flexibles, the inside wiring work continues during the rains in real infrastructure projects. That is one point. Second point is, on a Q-to-Q basis, I do not think any peer has grown so much. If you see our growth in terms of Q1 last year, this year we have almost doubled, done 129%.

Speaker #1: Diamond Power is the other way around. About 70% to 80% of our capacity is in medium and high voltage. Our products are not used during rain.

Speaker #1: We deliver the product to the project site. If you compare us with other companies which are making copper wires, industries, flexibles, the inside wiring work continues during the rains in infrastructure projects.

Speaker #1: So that is one point . Second point is on a Q2 basis , I don't think any peer has grown so much . And if you if you see our growth in terms of Q1 last year , this year we almost doubled or done 129% .

Speaker #1: So I think we are doing , as the industry is doing even the best of the companies in the lot . 1 or 2 have been , in fact , have grown negatively .

Amit Bhatnagar: I think we are doing as the industry is doing, even the best of the companies in the lot, one or two have been, in fact, have grown negatively. This is a cyclic thing which is more predominantly impacting medium voltage, but impacting all other manufacturers.

Speaker #1: So this is a cyclical thing, which is more predominantly impacting medium voltage, but it is impacting all other manufacturers as well.

Speaker #2: Thank you, Sir Sanjay. We request you to rejoin for the Q4 and follow-up questions. We have our next question from the line of Mahajan from Asset Management.

Operator: Thank you, sir. Sanjiv, we request you to rejoin for any follow-up questions. We have our next question from the line of Manik Mahajan from Bernstein Asset Management. Please go ahead.

Speaker #2: Please go ahead

Speaker #1: Thank you so much for the opportunity, and congrats on a great quarter.

Operator: Hi. Thank you so much for the opportunity, and congrats on a great Q3. I just wanted to understand from a customer mix or a customer concentration perspective, how much would you say roughly is Adani Group versus non-Adani?

Manik Mahajan: Hi. Thank you so much for the opportunity, and congrats on a great Q3. I just wanted to understand from a customer mix or a customer concentration perspective, how much would you say roughly is Adani Group versus non-Adani?

Speaker #2: Quarter .

Speaker #1: I just wanted to understand, from a customer or a customer concentration perspective, how much would you say roughly is Adani Group versus non-Adani? So, I think we told our— that...

Amit Bhatnagar: So, I think we told our

Speaker #2: Sorry to interrupt sir .

Operator: Sorry to interrupt, sir.

Speaker #1: The present order book from Adani is around 40%. Our board's mandate is to bring it down to 20% by the end of the year.

Amit Bhatnagar: The present order book from Adani Group is around 40% plus. Our board mandate is to bring it down to 20% in the end of the year. Presently, we are engaging with around 60 to 70 active customers across various verticals, and out of my outstanding order book position, there are around 200 plus customers. This is the spread of our customer.

Speaker #1: Presently , we are engaging with around 670 active customers across various verticals . And out of my outstanding order book position , there are around 200 plus customers .

Speaker #1: So this is the spread of our customer That's helpful . And the margin guidance that you have . 11 to 13% is that the same for FY 28 .

Operator: That is helpful. The margin guidance that you have given, 11% to 13%, is that the same for FY28 as there is no operating lever as you increase your utilization?

Manik Mahajan: That is helpful. The margin guidance that you have given, 11% to 13%, is that the same for FY28 as there is no operating lever as you increase your utilization?

Speaker #1: And there is no operating level as you increase your utilization , if you see our cost , which was earlier , 9% has come down to 6.5% , operations cost .

Amit Bhatnagar: If you see our cost, which was earlier 9%, has come down to 6.5% operations cost. Now if you compare this with any other cable company in the country, it is extremely low because what we make is per kilometer high value product. Our internal target is to bring it down to 6%. I think that would be a very good number compared with any other listed peer. The EBITDA guidance for the next year, we are confident we will maintain it between what I am telling you today, but we will work on how to improve upon it.

Speaker #1: As you compare this with any other cable company in the country, it is extremely low, because what we make is per kilometer—a high value product.

Speaker #1: Our internal target is to bring it down to 6%. I think that would be a very good number compared with any other listed peer.

Speaker #1: So the better guidance for the next year , we are confident we will maintain it between what I am telling you today , but we will work on how to improve , improve upon it Okay .

Speaker #1: Thank you. I'll go back to that. Thank you so much.

Operator: Okay, thank you. I will get back to the team. Thank you so much.

Manik Mahajan: Okay, thank you. I will get back to the team. Thank you so much.

Speaker #2: Thank you. We have our next question from the line of Rajesh Vohra from JM Ventures. Please go ahead.

Operator: Thank you. We have our next question from the line of Rajesh Vora from JMP Ventures. Please go ahead.

Speaker #3: Good morning, Amit and team. Congratulations on a terrific turnaround and a superb set of numbers. You have also given guidance at the peak revenue potential of ₹14,000 crores over the next few years.

Rajesh Vora: Good morning, Amit, and the team. Congrats on terrific turnaround and super set of numbers. As you have given the guidance at the peak revenue potential of INR 14,000 crores over the next few years, how would the revenue mix look like in terms of voltage EHV, LV exports and data center, if you can give an idea. At that level, what margins one can expect?

Speaker #3: How would the revenue mix look like in terms of voltage ? V , L , v exports and data centre ? If you can give an eye and at that level , what margins one can expect .

Speaker #1: We would expect this to do between 30% to 35%. The low voltage cable business to do between 10% to 15%, and the remaining 50% to 55% will continue to be in medium and high voltage.

Amit Bhatnagar: You would expect the conductor business to do between 30% to 35%, the low voltage cable business to do between 10% to 15%, and the remaining 55% to 60% will continue to be in medium and extra high voltage. Rating wise, if I bifurcate, the LV cable 1.1 in EBITDA is anytime between 8% to 9%. Conductor is between 9% to 10%. Conductor is the HTLS business we can grow, would see one or two knots above what we are targeting today. The medium voltage 11 kV should be around 14% to 15%, 33 should be around 16% EBITDA, and 66 and above will depend upon the nature of the configuration of the product, but will be between 18% to 22%. Considering this, we are seeing an average of 11% to 13%. Rajesh, you have been tracking the company very aggressively.

Speaker #1: We rating wise , if I if I bifurcate the cable , 1.1 inhibitor is any time between 8 to 9% , conductor is between 9 to 10% , conductor .

Speaker #1: If the business . We can grow would see 1 or 2 notch above what we are targeting today . The medium voltage 11 kV should be around 14 to 15% , 33 should be around 16% EBITDA and 66 and above will depend upon the nature of the configuration of the product , but will be between 18 to 22% .

Speaker #1: And considering this, we are seeing an average of 11% to 13%, and you have been tracking the company very aggressively. So, I think you are one person who can tell all of the other audience that we have delivered whatever we have promised you for the last two years.

Amit Bhatnagar: I think you are one person who can tell all of the other audience that we have delivered whatever we have promised you for last two years.

Speaker #3: No, no, it's your team and efforts. But what would be the percentage revenue from exports and data center when you get to the ₹14,000 crore revenue mark?

Rajesh Vora: No, it is your team and effort. What would be the percentage revenue from exports and data center when you get to INR 14,000 crore revenue mark?

Amit Bhatnagar: Data center I told you we are targeting 20%.

Speaker #1: Data center, I told you we are targeting 20%. And for export, it is too early for me to put a number because we have to test the waters properly.

Amit Bhatnagar: For export, it is too early for me to put a number because we have to test the waters properly, and that's why I put a number of 500 crores in the current year to get as an order. Right? Once we are at the end of the year, I will give you a guideline for the next year.

Speaker #1: And that's why I put a number of ₹500 crore in the current year to get an order. Right? So, once we are at the end of the year, I will give you a guideline for the next year.

Speaker #3: Sure . And if I may ask by the challenge is the rate at which you are growing almost doubling of what are the 2 or 3 big challenges in terms of handling such a high growth ?

Rajesh Vora: Sure. If I may ask, Amit, the rate at which you are growing, almost doubling, what are the two, three big challenges in terms of handling such a high growth, and what can go wrong?

Speaker #3: And what can go wrong

Speaker #1: So, every industry has its challenges, and some are macro and some are micro, right? The macro challenges are those which are not in our control.

Amit Bhatnagar: Every industry has its challenges, and some are macro and some are micro. Right? The macro challenges are not in our control. Things like the Iran war suddenly resulted in increase in polymer prices. The metal prices went up, so you need to suddenly have 20%, 30% more of incremental working capital. The macro challenges are not in our control, but fortunately, we have very strong promoters. Right. When a promoter can put in INR 500 crores in working capital in an NCLT turnaround company, you can understand his confidence and stomach on putting money. Such parameters of macro, we are fortunately insulated with the two promoters we have.

Speaker #1: Things like the Iran war . Suddenly resulted in increase in polymer prices . The metal prices went up . So you need to suddenly have 20 , 30% more of incremental working capital .

Speaker #1: So the macro challenge is we are not are not in our control , but fortunately , we have very strong promoters , right ?

Speaker #1: So, when a promoter can put in ₹500 crore in working capital in an NCLB turnaround company, you can understand his confidence and stomach in putting in money so that such parameters of macro—

Speaker #1: We are fortunately insulated with the two promoters we have, in terms of micro. That is where we are working, and that is where we have not said that we can go from.

Amit Bhatnagar: In terms of micro, that is where we are diligently working, and that is where we have not said that we can go from now we are INR 1,600 crores, the logical thing would be please use up your entire capacity in one year and become INR 8,000 crores. We are not saying that. Because when you produce more, you dispatch more. When you dispatch more, you have more challenges on the ground. So we are realistically growing the team. We are realistically growing the infrastructure. We are working on automation. This board has given me a special mandate this time, how to use AI and how are we going to now increase the output with the same number of people. So our technology team is working on IOT and machinery. We are capturing the production at every stage in our production cycle.

Speaker #1: Now we have ₹1,600 crores. The logical thing would be, please use up your entire capacity in one year and become ₹8,000 crores.

Speaker #1: We are not saying that, because when you produce more, you dispatch more. When you dispatch more, you have more challenges on the ground.

Speaker #1: So we are realistically growing the team. We are realistically growing the infrastructure. We are working on automation. This Board has given me a special mandate this time.

Speaker #1: How do we use AI, and how are we now going to increase output with the same number of people? So, our technology team is working on LP and machine learning.

Speaker #1: We are capturing the production at every stage in our production cycle. A customer can come to our factory and figure out from which batch of raw material the table has been manufactured.

Amit Bhatnagar: A customer can come to our factory and figure out from which batch of raw material the cable has been manufactured. Because see, we are dealing with high voltage cable where the customer is interested to know how I produce, but he is equally interested to know what quality of input has gone in. Considering these things, we are focusing on systems, processes, automation, AI, and you will see that the operational efficiency numbers going forward will show that.

Speaker #1: Because we are dealing with high voltage cable, where the customer is interested to know how I produce, but is equally interested to know what quality of input has gone in.

Speaker #1: So, considering these things, we are focusing on systems, processes, automation, and AI, and you will see that the operational efficiency numbers going forward will show that.

Operator: Great, Amit. Thank you so much, and wish you all the very best.

Rajesh Vora: Great, Amit. Thank you so much, and wish you all the very best.

Speaker #3: Thank you so much, and wish you all the very best.

Speaker #1: Thank you .

Amit Bhatnagar: Thank you.

Speaker #2: Thank you ladies and gentlemen . Due to time constraint , that will be the last question of the day . And I now hand the conference over to the management for closing comments Sir , any closing comments Are there any closing comments Ladies and gentlemen , the line for the management has been disconnected Ladies and gentlemen , thank you for patients meeting .

Operator: Thank you. Ladies and gentlemen, due to time constraint, that will be the last question of the day, and I now hand the conference over to the management for closing comments. Sir, any closing comments? Amit, sir, any closing comments? Amit, sir? Ladies and gentlemen, the line for the management has been disconnected. Please hold. Ladies and gentlemen, thank you for patiently waiting. We have the management back with us. Over to you, Amit, sir.

Speaker #2: We have the management back with us. Over to you. I'd like to...

Amit Bhatnagar: I'd like to thank the investors for remaining present in very large numbers. We've been welcoming a lot of investors to the factory, and we would again be happy to have you guys back. Your support in the QIP has really motivated our team, and we are confident that whatever confidence has been reposed on us, we would all strive to work hard. Our promoters are also very confident, and we are working towards the targets we have promised to you. Thank you very much. We'll see you back again the next quarter.

Speaker #1: I'd like to thank the investors for remaining present in very large numbers. We've been welcoming a lot of investors to the factory, and we would again be happy to have you guys back.

Speaker #1: Your support in this shift is really motivating. Our team and we are confident that with the confidence that has been placed in us, we will all strive to work hard.

Speaker #1: Our promoters are also very confident, and we are working towards the target we have promised to you. Thank you very much, and see you again in the next quarter.

Operator: Thank you, sir. On behalf of Monarch Networth Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Diamond Power Infrastructure Ltd Earnings Call

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