Diffusion Engineers Limited stock analysis

Revenue from operation was INR959.13 million in Q1 FY'27 as against INR733.72 Diffusion Engineers Limited August 13, 2026 Page 6 of 21 million in Q1 FY'26, increase of 3 0.72% Y-o-Y due to healthy demand across core industrial segments, improved execution capabilities and strong order book. EBITDA excluding other income was at INR121.54 million in Q1 FY'27 as against INR86.54 million in Q1 FY'26, increase of 40.44% Y

Diffusion Engineers Limited August 13, 2026 Page 4 of 21 We have historically delivered a strong growth trajectory even when operating at relatively high utilization levels. Our 5-year consolidated revenue CAGR has been app roximately 21% and the new capacity gives us significantly greater headroom for the next phase of growth. Our strategic direction remains clear.

Prashant Garg: So, we understood that there are three questions that you've asked. One is the growth in exports and domestic. Second, you've asked about any new product development pipeline.

The third is to impr ove our product mix by increasing the contribution from wear parts, heavy engineering and specialized consumables and engineering services. We see the potential for gradual margin improvement as capacity ramps up, provided that raw material conditions remain reasonably stable and we maintain execution discipline. International expansion remains another important pillar of our strategy.

We are executing a roughly INR100 crores expansion program which is designed to materially increase our manufacturing capac ity along across electrodes, wear plates and heavy engineering. Our heavy engineering capacity is being expanded from 9000 metric ton to 18000 metric ton, while our electrode capacity is also being expanded, supported by a new strip slitting capability th at will strengthen our backward integrat

The ethanol blending programme, targeting 30% blending under the E30 roadmap by 2030, is spurring distillery capital expenditure and recurring, annuity-type demand for the Company's hardfacing consumables, cold-repair compounds, and in-situ repair services across the sugar vertical. In nuclear energy, where installed capacity is expected to nearly triple to over 22,480 MW by 2031, the Company's DSIR-recognised R&D fa

R&D and DSIR Recognition The Company’s R&D facility, recognised by the Department of Scientific and Industrial Research (DSIR) with certification valid through March 31, 2027, continues to develop new consumable formulations including low- fume electrodes, chromium-free flux-cored wires, and advanced alloy compositions for specialised industries such as nuclear, aerospace, and cryogenic applications. This DSIR recogn

Shorter notice for the meetings were given to all directors as per provisions of Section 173[3] of the Companies Act, 2013 and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. The minutes of the Board Meetings and Committee Meetings have not identified any dissent by members of the Board/Committee o