NSE: DIFFNKG · BSE: 544264
DIFFUSION ENGINEERS LTD
Manufactures welding consumables (electrodes and flux-cored wires), wear plates, and heavy engineering components such as rotor assemblies, selling into the cement, steel, power, and mining industries. In FY26 consolidated revenue was INR406.63 crore, up 21.28% year-on-year, with EBITDA margin of 14.05% on a consolidated basis. The business is shifting its mix toward ready-to-fit heavy engineering and wear solutions rather than pure consumables, supported by a new 10-ton/day electrode plant, a 25% expansion of wear plate capacity, and an in-house strip-slitting line for flux-cored wires commissioned during the year. A 170,000–180,000 sq ft heavy engineering facility (Unit 4) is set to commission by end of Q1 FY27 to remove current capacity bottlenecks. Recent order wins include a INR26.31 crore domestic order for RAPH Rotor Assembly to the power industry and a INR7.49 crore order for flux-cored wire to the defence industry, while new initiatives span the railway Vande Bharat supply chain and defence via an investment in Tejorup Sunmay for VSHORADS manufacturing. The order book stood at INR200 crore as of April 30, 2026, with over 80% of FY26 revenue from repeat customers, and a UAE service/overlay facility is now operational to support exports present in 35+ countries. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Welding consumables, Wear plates, Heavy engineering components, Defence, Railways. Asset-heavy industrial products and heavy engineering manufacturer, with a growing shift from consumables toward ready-to-fit components.
Exhibit 1: Financial summary, FY25–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY25 | FY26 |
|---|---|---|
| Revenue | 335 | 407 |
| EBITDA (ex other income) | 47 | 56 |
| margin % | 14.0 | 13.9 |
| Owners' profit | 36 | 0 |
| EPS, as reported (₹) | 9.59 | 13.50 |
| ROE % · ROCE % | 9.8 · 13.6 | 12.4 · 15.7 |
| Debt / equity (x) | 0.06 | 0.07 |
| Cash from operations | 9 | 23 |
| Capex | (15) | (41) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 82 | 79 | 102 | 81 | 84 | 101 | 142 | 110 |
| Profit before tax | 12 | 9 | 18 | 14 | 13 | 14 | 21 | 16 |
| Net profit | 9 | 7 | 13 | 12 | 10 | 12 | 16 | 17 |
| EPS (₹) | 3.01 | 1.92 | 3.49 | 3.26 | 2.69 | 3.22 | 4.29 | 4.47 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| HBL ENGINEERING LTD | 21,784 | 23.6 | 9.84 | 18.7 | 36.8 | 45.3 | 29.4 | 26.2 |
| INOX INDIA LIMITED | 17,363 | 68.1 | 15.54 | 45.3 | 23.1 | 30.0 | — | 23.4 |
| ESAB INDIA LTD | 8,087 | 36.5 | 18.83 | — | 48.1 | 60.4 | — | 19.2 |
| SUBROS LIMITED | 4,039 | 24.3 | 3.25 | 11.4 | 13.3 | 16.0 | 15.9 | 8.4 |
| W P I L LTD. | 3,819 | 24.1 | 1.94 | 10.9 | 10.2 | 13.1 | 13.3 | 17.7 |
| HARSHA ENGINEERS INT LTD | 3,780 | 24.4 | 2.70 | 14.8 | 11.1 | 13.2 | — | 15.9 |
| ADOR WELDING LTD | 2,389 | 21.1 | 4.31 | 17.2 | 14.8 | 19.9 | 20.6 | 13.8 |
| DIFFUSION ENGINEERS LTD ◆ | 1,512 | 27.5 | 3.73 | 20.2 | 12.4 | 15.2 | — | 16.6 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 27.5 | 18.4 | 22 of 27 | 19% |
| P/B | 3.7 | 2.5 | 16 of 24 | 35% |
| ROCE | 15.2 | 12.3 | 11 of 31 | 67% |
| ROE | 12.4 | 10.3 | 9 of 24 | 65% |
| Debt / Equity | 0.1 | 0.2 | 10 of 24 | 61% |
| EBITDA margin | 16.6 | 10.8 | 8 of 23 | 68% |
| Revenue growth | 36.5 | (5.5) | 3 of 23 | 91% |
| Profit growth | 36.0 | (5.0) | 8 of 23 | 68% |
| Market cap | 1512 | 102 | 8 of 31 | 77% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 26 Oct 2026 · Company Secretary and Compliance Officer resigns effective November 30, 2026 | management changes | high | — | — |
| 7 Oct 2026 · Compliance certificate for Q2 FY27 - no demat requests received | compliance | minimal | — | — |
| 28 Sept 2026 · Analyst meeting held at Arihant Bharat Connect Conference on Sep 28 | investor communications | low | — | — |
| 23 Sept 2026 · Crisil reaffirms credit ratings, bank facilities enhanced to Rs 85 Cr | credit debt | medium | — | — |
| 23 Sept 2026 · Analyst/Investor Meeting on Sept 28, 2026 at Bharat Connect Conference | board shareholder meetings | low | — | — |
| 22 Sept 2026 · Trading window closed from Oct 1, 2026 till 48 hours after Q2 FY26 results | compliance | minimal | — | — |
| 8 Sept 2026 · Management attended Avendus Spark small-cap investor conference on Sept 8 | investor communications | low | — | — |
| 8 Sept 2026 · All 6 resolutions passed at Diffusion Engineers 44th AGM; Rs 1.50 dividend declared | board shareholder meetings | low | — | — |
| 7 Sept 2026 · Post-intimation of investor meet with Bajaj AIF on 7 Sep 2026 | investor communications | low | — | — |
| 7 Sept 2026 · 44th AGM held; final dividend of Rs 1.50 per share proposed | board shareholder meetings | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.