Q2 FY27 call: revenue INR1,032 crores, net worth turns positive, net cash INR572 crores
Diamond Power's Q2 FY27 earnings call: revenue from operations INR1,032 crores, up 135% year on year.
By ScoutQuest · · 3 min read
- Q2 Revenue from Operations
- INR1,032 crores, up 135% year on year
- Q2 PAT
- INR108 crores versus INR28 crores a year ago
- Net Worth
- negative INR604 crores to positive INR764 crores
The update is the transcript of the earnings call held on November 4, 2026, where management discussed the unaudited results for the quarter and half year ended September 30, 2026.
Quarter and half-year numbers
- Revenue from operations for Q2 was INR1,032 crores, up 135% over the same quarter last year and up 50% sequentially.
- EBITDA including other income was INR133 crores, up 189%, at a margin of 12.9%.
- Profit after tax was INR108 crores against INR28 crores a year ago.
- Earnings per share for the quarter was INR1.87.
- For the half year, revenue was INR1,722 crores, EBITDA INR218 crores and PAT INR166 crores.
- Management said H1 profit of INR166 crores is already higher than the INR158 crores earned in the whole of the previous financial year, and that six months delivered 90% of last year's full-year revenue.
What management said drove the quarter
- Product mix: cables were 40% of revenue, conductors 31%, and the remaining was data centre cables.
- A new data centre cable line, which did not exist in the previous quarter, contributed INR242 crores or 23% of the quarter's revenue, supplied through EPC contractors building hyperscale data centres, including L&T, AurionPro, Sterling Wilson and Blue Star.
- Copper capacity of 1,500 tons a month is live and is being scaled to 2,500.
- September saw record production of INR575 crores plus GST, of which INR240 crores of data centre cables were made and delivered in a single month.
- Conductor dispatches were 6,850 kilometres in the quarter.
- Employee and other expenses fell to 5.7% of revenue from 8.2% a year ago, and EBITDA margin expanded 240 basis points, even as contribution margin moved from 18.7% to 16.9%.
Management's own caveat on metal prices
- Contracts carry price variation clauses, so higher LME aluminium prices inflate the revenue base while the absolute contribution per ton is protected.
- Of the 135% revenue growth, management estimated metal and price variation pass-through account for perhaps a third, with the rest from real volume growth.
- On actual production and dispatches, growth was described as well above 60% to 70% year on year.
- Other income of INR18 crores was described as treasury income on QIP funds placed in fixed deposits.
Balance sheet shift
- Net worth was negative by INR604 crores at March 31, 2026 and positive by INR764 crores at September 30, 2026.
- Net debt of INR527 crores became net cash of INR572 crores.
- The QIP completed in July raised INR1,614 crores, and promoter loans were fully repaid.
- The resolution plan was prepaid for INR501 crores cash consideration, a year ahead of the September 2027 deadline, with a prepayment discount of almost INR9.5 crores.
- Management said the company has exited the NCLT process with all planned payments completed, lender NOC release of charges is in process, and the company is now eligible for a credit rating for fresh bank lines which are being tied up.
Forward-looking points mentioned by management
- Copper capacity is being scaled from 1,500 tons a month to 2,500 tons a month.
- Fresh bank lines are being tied up, supported by the credit rating eligibility mentioned above.
For a retail reader, the key takeaway is that the quarter combined very strong reported growth with a stated mix of metal pass-through and higher actual volumes, and that the balance sheet moved from negative net worth and net debt to positive net worth and net cash, helped by the QIP and the prepaid resolution plan. Management's own framing is to judge the business on volumes rather than rupee top lines.
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No deviation or variation in use of QIP funds for quarter ended September 30, 2026
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More numbers
- Q2 FY27 revenue from operationsINR1,032 crores
- Q2 EBITDA including other incomeINR133 crores
- Q2 profit after taxINR108 crores
- H1 FY27 revenueINR1,722 crores
- H1 FY27 profit after taxINR166 crores
- Data centre cables contribution to Q2 revenueINR242 crores
- Net worth as at September 30, 2026INR764 crores
- QIP amount raisedINR1,614 crores
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