Diffusion Eng Q2 FY27 Results (NSE: DIFFNKG)
Signal: Steady quarter
The read
The trajectory improved in Q2FY27: standalone revenue growth accelerated to 38.3% YoY from 35.8% in Q1FY27 and EBITDA margin recovered to 16.7% from 15.6% QoQ, but the 53.7% PAT increase was amplified by ₹64.97 million of other income, including the Singapore subsidiary dividend, so operating momentum is stronger than the headline profit growth.
P&L walk
The consolidated P&L figures are not included in the supplied filing text; consolidated assets are disclosed, but consolidated revenue and profit values cannot be extracted without fabrication.
Key positives
- Standalone total revenue reached ₹1,145.75 million, up 38.3% YoY and 15.6% QoQ, accelerating from Q1FY27's 35.8% YoY growth.
- Standalone EBITDA increased 35.9% YoY to ₹191.11 million and EBITDA margin recovered 111bps QoQ to 16.7%.
- CWIP increased by ₹165.42 million to ₹387.12 million by September 30, 2026, supporting a visible capacity-investment cycle.
- Standalone net cash was ₹468.50 million, limiting balance-sheet funding risk despite finance costs rising 60.3% YoY to ₹7.52 million.
Key concerns
- PAT growth of 53.7% YoY to ₹152.38 million exceeded EBITDA growth of 35.9% because other income rose 123.0% YoY to ₹64.97 million.
- Employee benefit expenses increased 220.9% YoY to ₹121.23 million, materially faster than revenue growth and constraining EBITDA-margin expansion.
- EBITDA margin of 16.7% was 33bps below the 17.0% standalone level in Q2FY26, despite the strong revenue increase.
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