Diffusion Engineers Q3 FY26 Earnings Call Transcript Released
Diffusion Engineers Limited released its Q3 FY26 earnings call transcript on Feb 9, 2026. The company reported consolidated Q3 revenue up 27.3% to INR1008.24 million and PAT up 69.1% to INR120.11 million. For 9M FY26, revenue rose 13.9% to INR2650.54 million and PAT increased 49.6% to INR344.40 million. The company aims for INR600-700 crore turnover by FY28-29 and 15-16% EBITDA margins by FY27.
The announcement includes detailed financial results, strategic updates on capacity expansion and a new investment, and future growth guidance, all of which are material information for investors. The positive financial performance and optimistic outlook are likely to significantly influence investor sentiment and the company's stock.
The company reported strong year-on-year growth in revenue, EBITDA, and profit after tax for both the quarter and nine months ended December 31, 2025. Management expressed confidence in future growth, capacity expansion, and margin improvement, supported by a robust order book and strategic investments.
Diffusion Engineers Limited has released the transcript of their conference call concerning the Un-Audited Financial Results for the quarter and nine months ended December 31, 2025. The call was held on February 09, 2026, and featured insights from Chairman and Managing Director Mr. Prashant Garg, CFO Mr. Abhishek Mehta, and Company Secretary and Compliance Officer Ms. Chanchal Jaiswal.
During the call, Mr. Garg provided an overview of the company's business, highlighting its integrated manufacturing platform for welding consumables, wear plates, and heavy engineering equipment. He noted that over 80% of revenues come from repeat customers and that the company is well-positioned for accelerated growth from FY '27 to FY '29, supported by IPO-funded capacity expansion. FY '26 has seen steady execution with double-digit growth and stable consolidated EBITDA margins of 13% to 14%. The order book remains robust at approximately INR2 billion. Key capacity expansions are underway, including increased welding consumables capacity, a 25% increase in wear plate capacity, a new wire manufacturing line, and a new heavy engineering facility expected by the end of FY '26. These new assets are projected to deliver an asset turnover of 3x to 3.5x, with full utilization expected by FY '28-'29. The company is targeting double-digit revenue growth in FY '27, with accelerated growth of around 25% thereafter, and aims for EBITDA margins of 15% to 16% in the medium term. The long-term aspiration is a top-line of INR6 billion post-capex.
Mr. Mehta detailed the financial performance for Q3 and the nine months ended December 31, 2025. Consolidated revenue increased by 27.31% year-on-year to INR1008.24 million in Q3 FY '26, with EBITDA up 28.96% to INR135.05 million and Profit After Tax up 69.14% to INR120.11 million. For the nine months, consolidated revenue grew by 13.88% to INR2,650.54 million, EBITDA by 12.60% to INR364.54 million, and Profit After Tax by 49.55% to INR344.40 million. Standalone figures also showed significant year-on-year growth in revenue, EBITDA, and Profit After Tax for both the quarter and the nine-month period.
The management also discussed a strategic investment in Tejorup Sunmay Systems Private Limited, a pre-revenue company developing advanced systems for aerospace, marine, and land applications, specifically laser beam riding man-portable missiles for Very Short Range Air Defense Systems (VSHORADS). This investment is strategic, aiming to secure manufacturing rights for the entire system. They also provided an update on receiving Letters of Intent (LOIs) for three railway contracts related to Vande Bharat, with execution expected within three to five months. The company has commissioned a 10-ton electrode plant and a slitting line for wire production.
Future outlook includes targeting INR600-700 crores turnover by FY '28-'29 with new capacities, aiming for EBITDA margins of 15-16% by FY '27, and expecting double-digit revenue growth in FY '27, accelerating to 25% thereafter. The company sees strong demand from the cement, steel, and power sectors, with plans to manage raw material price volatility by working with more vendors and increasing in-house processing.
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