Diffusion Engineers Posts Record FY26 Results

19 May 2026 CW Team

On a consolidated basis the company registered revenue growth of 21.28 per cent for the full year and profit after tax growth of 39.87 per cent year on year. Quarterly revenue rose 38.08 per cent year on year and quarterly EBITDA (excluding other income) came in at Rs 206.89 mn compared with Rs 147.81 mn a year earlier, yielding a quarterly EBITDA margin of 14.61 per cent. For the full year consolidated EBITDA excluding other income was Rs 571.42 mn with margin at 14.05 per cent.

The standalone business reported Rs 3,542.03 mn in revenue for the year and standalone profit after tax rose by 32.27 per cent to Rs 446.43 mn. The company reported a robust order book, with a grand total of Rs 1,741.09 mn as at 31 March 2026 and Rs 1,994.82 mn as at 30 April 2026, led by heavy engineering orders of Rs 1,638.78 mn. Management attributed the order momentum to demand across steel, mining, cement, railways, power and engineering sectors and said improved execution and mix supported second half performance.

Management described FY26 as an execution-led year supported by sustained demand, operational efficiencies and disciplined cost management that underpinned margin stability and strong operating leverage. The board noted continued focus on expanding product offerings, strengthening domestic and export market presence and delivering on existing order book to convert revenue visibility into growth. Management remained optimistic about medium- to long-term prospects, citing continued industrial capex, asset refurbishment and import substitution as drivers of future demand.

Diffusion Engineers Limited, a manufacturer of welding consumables, wear plates and heavy engineering equipment with nearly 40 years in the industry, reported its results for the fourth quarter and full year ended 31 March 2026. The company recorded its highest ever quarterly revenue of Rs 1,415.74 million (mn) and yearly revenue of Rs 4,066.28 mn, while quarterly profit after tax stood at Rs 159.70 mn and full year profit after tax at Rs 504.10 mn. These results were prepared under IND AS accounting guidelines and reflect consolidated performance. On a consolidated basis the company registered revenue growth of 21.28 per cent for the full year and profit after tax growth of 39.87 per cent year on year. Quarterly revenue rose 38.08 per cent year on year and quarterly EBITDA (excluding other income) came in at Rs 206.89 mn compared with Rs 147.81 mn a year earlier, yielding a quarterly EBITDA margin of 14.61 per cent. For the full year consolidated EBITDA excluding other income was Rs 571.42 mn with margin at 14.05 per cent. The standalone business reported Rs 3,542.03 mn in revenue for the year and standalone profit after tax rose by 32.27 per cent to Rs 446.43 mn. The company reported a robust order book, with a grand total of Rs 1,741.09 mn as at 31 March 2026 and Rs 1,994.82 mn as at 30 April 2026, led by heavy engineering orders of Rs 1,638.78 mn. Management attributed the order momentum to demand across steel, mining, cement, railways, power and engineering sectors and said improved execution and mix supported second half performance. Management described FY26 as an execution-led year supported by sustained demand, operational efficiencies and disciplined cost management that underpinned margin stability and strong operating leverage. The board noted continued focus on expanding product offerings, strengthening domestic and export market presence and delivering on existing order book to convert revenue visibility into growth. Management remained optimistic about medium- to long-term prospects, citing continued industrial capex, asset refurbishment and import substitution as drivers of future demand.

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