Power Stock in Focus After Reporting 691% YoY Increase in Net Profit

Synopsis: A power cables and conductors manufacturer reported a strong FY26, with revenue rising 71 percent to Rs. 1,910 crore and PAT surging 355 percent to Rs. 158 crore. A record Q4, rapid margin expansion, and a growing order book are powering an ambitious push into EHV cables, advanced conductors, and new-age demand from data centers and renewables.

India’s power infrastructure and renewable energy expansion are driving rising demand for advanced transmission products. One integrated cables and conductors manufacturer delivered a standout FY26, supported by record quarterly growth, strong margin expansion, and increasing traction in EHV cables, premium conductors, and data center-linked projects, positioning it strongly for the ongoing power sector capex cycle. 

With a market capitalization of Rs.10,700 crore, the shares of Diamond Power Infrastructure were trading at Rs.203 per share on 27 May 2026. The stock trades in a 52-week range of Rs.211.20 to Rs.97.70 and at a P/E of 72x.

FY26 Financial Performance

For FY26, revenue from operations grew 71 percent YoY to Rs. 1,910 crore, compared to Rs. 1,115 crore in FY25. EBITDA expanded dramatically by 243 percent to Rs. 232 crore, with EBITDA margins nearly doubling from 6.1 percent to 12.1 percent. Profit after tax rose 355 percent to Rs. 158 crore, against Rs. 35 crore in FY25, while EPS improved from Rs. 0.66 to Rs. 3.00 per share. 

Q4 FY26 Snapshot

Q4 FY26 was the company’s strongest quarter on record. Revenue surged 108 percent YoY and 47 percent QoQ to Rs. 696 crore, demonstrating accelerating execution momentum through the year. EBITDA for the quarter came in at Rs. 85 crore, up 506 percent YoY, with margins at 12.2 percent. PAT for the quarter jumped 691 percent YoY to Rs. 61 crore, up 22 percent sequentially, reflecting strong operating leverage at a higher scale. Gross margin for Q4 stood at Rs. 130 crore, up 173 percent YoY.

Premium Product Mix: The Margin Story

The FY26 margin expansion wasn’t accidental. The company has been systematically shifting toward higher-voltage, higher-margin products, and the results are showing. More than 50 percent of FY26 revenues came from new energy and data center customers. The 33kV cable segment alone contributed 25 percent of total sales, and the company’s premium conductor portfolio spanning AL-59, HTLS, MVCC, and TS conductors has moved from development to commercial scale.

The company secured an 850 km order for its type-tested ECO conductors during the year, while a licensed manufacturing partnership with US-based TS Conductor for next-generation HTLS conductors adds a technological edge that most domestic peers simply don’t have.

Scale, Integration, and the Road Ahead

What makes DICABS structurally interesting is its single-location, fully integrated manufacturing campus in Vadodara, the only facility in India that is backward integrated from aluminum rods all the way to 400 kV EHV cables. Current capacity utilization stands at just 25–30 percent, meaning the growth story has barely begun. 

The outstanding order book stands at Rs. 3,498 crore, providing strong near-term revenue visibility. On the capex front, the next two years are focused on debottlenecking MV cable capacity to 22,500 km per annum, developing high-ampacity and data center-specific products, and expanding the retail distribution network toward 2,000+ customers.

Verdict

FY26 marked a genuine inflection for this company, not just in numbers but in business character. The shift from conventional conductor manufacturing toward EHV cables, premium conductors, and new-energy applications is gaining meaningful scale, and operating leverage is beginning to work in investors’ favour. With a deep order book, vast headroom for capacity utilization, and tailwinds from India’s power supercycle, the long-term opportunity remains compelling for patient investors.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Power Stock in Focus After Reporting 691% YoY Increase in Net Profit appeared first on Trade Brains.