Diamond Power FY26 Results (NSE: DIACABS)

23 Jul 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

FY26 annual: Revenue tripled from FY24 levels (3yr CAGR 74%), EBITDA margin expanded 4th straight year to 9.5% — operating leverage from fixed-cost absorption. Audit qualification on PPE valuation (carried from NCLT era at 20% depreciation) remains unresolved, with final value-in-use pending; any revision could materially alter depreciation and asset base. Order book robust with ₹621 Cr of announced wins (Adani, L&T data centers) providing FY27 revenue visibility.

P&L walk

Revenue surged 126% YoY to ₹1,914 Cr driven by order execution scale-up; EBITDA margin expanded 320bps to 9.5% as finance cost dropped 33% and depreciation rose only 12% (operating leverage at play), though PAT margin dipped slightly QoQ in Q4; audit qualification on PPE valuation persists

Key positives

• Revenue ₹1,914 Cr grew 126% YoY — 5th consecutive quarter of YoY revenue acceleration
• EBITDA margin expanded 320bps to 9.5% — 4th straight year of margin expansion after 3 flat quarters in FY24
• PAT ₹118 Cr grew 236% YoY — strong flow-through from operating leverage and lower finance cost (-33%)
• Finance cost dropped 33% to ₹35 Cr despite revenue scale-up — debt reduction from QIP proceeds
• Subsidiary DICABS Nextgen added ₹953 Cr revenue in first full year of operations — diversification benefit

Key concerns

• Q4FY26 standalone revenue growth decelerated to 108% YoY from 149% in Q3 — sequential revenue dipped from ₹474 Cr to ₹334 Cr (standalone)
• Q4FY26 standalone EBITDA margin contracted 900bps YoY to 4% — margin pressure on standalone operations
• EPS growth (233%) slightly lags PAT growth (236%) — minor dilution from QIP (₹2,000 Cr approved)
• Qualified audit opinion on PPE valuation pending for 5th consecutive quarter — final value-in-use and depreciation could change materially

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Research and educational content only. Not investment advice.