Diamond Power Infrastructure (NSE:DIACABS) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Diamond Power Infrastructure Limited q one FY twenty seven earnings conference call hosted by Monarch Network Capital. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions at the end of today's presentation. Please note that this conference is being recorded. Before we begin, a brief disclaimer. This conference call may contain forward looking statements about the company, which are based on beliefs, opinions, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict.

0:49 I would now like to hand the conference over to Mr. Mohit Surana from Monarch Network Capital. Thank you, and over to you, sir. Good morning, everyone. Welcome to Diamond Power's Q1 FY 'twenty seven Earnings Call. Joining us today are Mr. Amit Bhattnagar, Head Corporate Strategy Mr. Pawan Lohia, Chief Financial Officer and Mr. Umesh Chaya, Hold Time Director. With that, I will hand over the call to Mr. Bhattnagar for his opening remarks. Over to you, sir. Good morning, everyone, and thank you for joining us. I'm Amit Bhatnagar, Head of Corporate Strategy at Diamond Power. On behalf of our directors and the entire leadership team, it is a pleasure to welcome you and to do so at what is genuinely an inflection point in our story.

1:44 For those of you who may see Diamond Power for the first time, let me place us in a single sentence. We are one of India's fully integrated manufacturers of power transmission and distribution products in the cable and conductor segment, spanning the full voltage gain from low voltage to the extra high voltage, all produced at a single 110 acre integrated complex in Guadhara in the state of Gujarat. From wire rod through to finish extra high voltage given, the entire value chain sits under one roof. Very few companies in our industry anywhere in the world carry that degree of integration, and it is the foundation of everything I will describe this morning to you.

2:30 Let me begin where it matters the most, with the quarter's results and with the conditions in which we have earned them. This year, India's monsoon arrived early and arrived hard. From this very first week of June, we last saw heavy and sustained rainfall and a large number of our customers' installation sites were flooded. For a business where so much video voltage cable is laid, it is the most destructive weather imaginable trenching and cabling simply cannot proceed when the ground is underwater. It impacts our product and also impacts our product mix as conductors and LV cables are not impacted much. Our first quarter is always the most seasonally demanding of the year.

3:19 This year, it was more demanding than most. However, we have met our internal target 700. And against this backdrop, we more than doubled our top line. For the quarter ended 06/30/2026, on a consolidated basis, revenue was $6.90 crores. That is roughly USD 83,000,000, up 129% year on year. EBITDA was INR 85 crores, up 172% on a margin of 12.3% and an expansion of nearly 200 basis points. Profit after tax was INR 58.5 crores, up 191% at a net margin of 8.5%.

4:05 Earnings per share for the quarter was INR 1.11 on a face value of INR 1. I would ask you to hold these three growth figures together, revenue up 129%, EBITDA up 172%, profit up 191 because the pattern within these is a real message. Our profit is growing considerably faster than our revenue. That is operating leverage doing precisely what it should. As our newer and higher value production lines mature and carry most of the load. We have delivered growth of this magnitude through a flood affected monsoon quarter is not a seasonal accident. It is evidence of the structural momentum now the Diamond Power business is gathering.

4:52 Let me say a word of specifically about margins because there is an important story beneath headline. Raw materials, aluminum and copper, both stood firm through the quarter and a portion of our order book is executed with prices agreed before this input move. So the pass through as per percentage of our sales reaches us with a lag. Neither of these structures mix normalizes at the high voltage lines filled throughout the year in metal cost base over any reasonable horizon, a pass through in the way our contracts are written. We are completely back to back of passing the increases in metal and polymers to all our customers. What I would draw your attention to is despite these gross margin pressures, our EBITDA margin still expanded by close to 200 basis points to 12.3%.

5:43 That is precisely the operating leverage I described as revenue more than doubled our fixed cost base, people, plant, overheads, power was spread on a further far larger top line and the gain in absorption more than offset the compensation compression higher on the P and L. Clearly, we absorbed a weaker gross margin and still delivered a materially stronger operating margin. As mix and utilization both improved from here, we expect the gross margin headwind to ease and the operating leverage to compound on the top of it. You will certainly see its impact in the next three quarters. One brief note on the accounts. So nothing surprises you. Our tax charge for this quarter is negligible as we continue to carry forward accumulated losses from the period preceding our resolution plan, a benefit that will taper over time as profitability continues, but is there with us at least for the next two years.

6:44 A second note on the comparative. In our prior accounts, you would see an exceptional item of provision for depreciation related to earlier periods, which has not been charged in the years surrounding our resolution plan and was recognized as a onetime cash up once the plan was implemented. I'll give you for a simple reason. It is a noncash prior period accounting adjustment that sits below our operating line. It does not reach our EBITDA. It does not reflect the earning power of the business as it runs today. It does not reoccur. When you compare this quarter with the underlying business is the operating level where none of that noise is present. More importantly, the auditor qualification, which was on the books till now stands resolved and the numbers are without any qualification.

7:36 I would also remiss not to record a milestone reached during this quarter. We completed a QIP placement raising $16.40 crores 14 crores, close to USD 195,000,000, achieving full minimum public shareholding compliance and welcoming marquee institutions into our register. To every investor who participated, thank you so much. You place your confidence in Diamond Power at a formative moment in its journey to us. Sorry to interrupt you. Oh, your voice was weak. Okay. You just repeat the last ten seconds?

8:28 Placed your confidence in Diamond Power at a formative moment in its journey. We are acutely conscious of the responsibility your capital carries. We intend to honor it through our performance. Our last two years performance shows how quarter by quarter we have delivered and we strongly believe in delivery rather than any forward looking strong assurance. And let me be precise about the timing of that capital because it shapes how these results should be read. The quarter you have just heard $6.90 crores of revenue profit up by 191% delivered before a single rupee of the QIP proceed was put to work. Q1 was earned on the balance sheet as it stood without the benefit of that fresh capital.

9:18 Those funds are now being deployed into the capacity. I'm about to describe and the impact on our numbers is not a first or second quarter event. It converts into P and L as the new lines commission and load, which means it will end squarely on the third and fourth quarter. Put simply, the clearest evidence of what this business can do is still ahead of us in the second half. Let me now turn to the strategy behind these numbers. Because the results you have just heard are the visible surface of a very deliberate shift the company is going through. Diamond Power is moving decisively towards a leadership position in the medium voltage and extra high voltage segment of India's cable and conductor market.

10:05 If you take one thing from this call, I would like it to be that. The logic is straightforward. A very large share of our industry volume sits at the commoditized end, low voltage cables, where competitors are many and differentiation is thin. The enduring value sits higher up, the voltage radar, medium voltage from 11 to 66 and extra high voltage above it. Where qualification is difficult, the field of credible suppliers is narrowed and the realizations are materially better. That is where Diamond Power has chosen to build and where we intend to lead. This is not an aspiration. It has been financed, engineered and installed on the ground. And let me be specific about the capacities coming into place.

10:55 First and foremost, we have just approved in the Board two aluminum corrugation lines that will materially expand our six zero six kV cable capacity and 132 kV cable capacity. This let us convert capacity from 33 kV up to 6,132 where margins are lower, moving our capabilities decisively up the value curve. It is important to understand that with the same CCV lines by adding two more aluminum corrugation lines a minimal CapEx of INR17 crores, we have opened up INR66 crores and INR132 crores capacity substantially by compromising one line of 33 kV and added more value added products, so our return on investment becomes stronger.

11:45 Secondly, I'm very happy to share that we are in the final stages of ordering our sixth CCV line. And this is purely based on the demand which we are seeing and also the inputs and questions from our investors as to what are your plans on increasing the capacity. We will order one more line and that should be commissioned before December 2027. The most important part here is we are not going to do any additional civil CapEx or utility CapEx because our existing infrastructure has a scope and provision to add one CCV line, only the equipment will come in. There are no additional utility and infrastructure costs involved.

12:33 It deepens our capability at precisely the end of the market where we intend to lead. And third, our two additional medium voltage cable lines are under installation and I'm happy to tell you they are on schedule. This is the workhorse capacity for 11 to two twenty kilobytes segment that forms the largest single block of our order book. And it is timely commissioning is central to our execution plan for the year. Taken together, these are not incremental additions. They are the physical build out of our company positioning itself to lead in the medium and extra high voltage, capacity coming online in step three order book already concentrated at the end of the product. There is a further engine that I want to highlight. Our new LV cable project, we are converting our old rod mill and legacy conductor plant into a modern low voltage and control cable facilities for both aluminum and copper, a brownfield upgrade with no single construction cost. At full utilization, it adds around 42,000 kilometers of LV capacity with revenue potential approaching INR $18.80 crores.

13:45 Two things make it strategically important. First, it is deliberately built for copper LV cables to suit data centers. Diamond is on the forefront of getting data center orders in the country. We are concentrated more on medium voltage cable, so we do not want the LV part of the business to go from us. More importantly, not only at medium voltage, secondly, it broadens our base, a high volume LV engine sitting beneath our medium voltage and extra high voltage franchisee and a meaningful contributor to the commercial production is expected from financial year twenty seven-twenty eight. We'll commission it before March. The order book is the foundation of our confidence.

14:30 As on 08/11/2026, it stood at INR3688 crores, roughly $445,000,000 and about 2x of last year's revenue across 12 product lines, and it continues to grow with over INR 1,000 crore of fresh wins since April. I'm also very happy to tell you that in the last six to seven days itself, we have taken orders worth INR 400 crores. We reported orders we report orders above INR 50 crores to the market. Therefore, you have seen that we have reported two major orders, one from Rajesh Power for disaster management and second order coming in from electricity board.

15:17 Other miscellaneous orders in last seven days itself, we have added INR 400 crores. The medium voltage band is its largest single component. Our INR $4.35 crore data center order sits within it. And roughly INR $8.45 crores out of this INR 3,688 crores is to be executed in the next year. So for the current year, we are holding an order book of around INR 2,800 crores to be delivered before March, along with the fact that we are adding between $2.75 crores to INR $3.25 crores of order every month. So we are confident that when we begin the next year, we would have got the next year targets more than 50% to 60% order book in place. So let me direct about the full year. We delivered INR $6.90 crores in the toughest, most flood affected quarter of our calendar.

16:10 The new capacity comes on stream through the year and the order book underwrites the ramp up. On that basis, we are firmly on track to deliver a full year top line in the range of INR 4,300 crores to INR 4,500 crores and to do so by holding the margin profile you have seen this quarter, not sacrificing it for the volume. Let me put some structure under this rate because I know it implies a meaningful step from INR $6.90 crores first quarter. Three things bridge the gap. One of them asked for heroics. The first is seasonality, simply reversing. Our first quarter is every year our weakest. And this year, the early monsoon made it because still, If the rain would have come on time, you could have seen an incremental 70 crores to 80 crores top line and the corresponding EBITDA on the books. Our second half is consistently our strongest. So the base is built from it is the first quarter that was by design and by weather, the low point of the year. The second is utilization.

17:17 We entered the year running the plant well below its capacity with several lines only partially loaded and the newest ones still in ramp. As the two aluminum corrugation lines and the two medium voltage lines commission and the load as per existing lines fill up against the growing order book, supported by the large fund raise which we have, our utilization rises materially. And because so much of our cost base is fixed, each incremental point of utilization converts to revenue and margin very efficiently. To reach INR 4,300 crores to INR 4,500 crores range, the balance sheet of the year needs to run at close to twice the pace pace of the first quarter, measure against the capacity we already have installed in commissioning.

18:03 It is a step up in utilizing, not a stretch of our capacity. And the third is the order book. I have described a moment ago. The great majority of it scheduled for the execution within the financial Sorry to interrupt you. Yeah. Yeah. Now your line is clear. Capacity coming on stream, utilization timing of low base and a funded order book converting into batch. That is what underwrites 4,300 crores to INR 4,500 crores and why we hold it to confidence.

18:48 Let me place all of this in a wider context because we are operating a genuinely power durable cycle, a leading share across our listed peers. India is in a structural capital and expansion of its power infrastructure and several independent engines are pulling demand at once. The installation buildup is adding new lines at scale to evacuate renewable power from the grid generation parts, RE being foremost among them, which require extra voltage cable and conductor. Aging distribution grids are being reinforced and more underground squarely medium voltage demand is coming. Smart city mandates require underground urban cabling. Climate resilience has become a procurement driver in its own utilities as utilities in flood and cyclone exposed regions convert overhead networks to the underground systems.

19:42 To keep lights on through exactly the weather we saw this quarter and the DIACA seem to sit on the top of it all, India's installed capacity base is set to expand several fold and every megawatt carries a substantial cable requirement. Most importantly, these are not abstractions. Let me give you two very recent concrete proofs that demands converting into orders. The first is a thirteen seventy kilometer medium voltage order from Gujarat distribution utility through Rajesh Power, supplying underground cable for disaster management and urban scheme across the coastal bend, precisely the climate resilience demand I have described. And in firm order, we are already executing. The second is a letter of intent from a distribution company in the UP Electricity Board for a high tension cable across multiple utilities, a win that opens one of India's largest distribution markets to us at the higher voltage end, Coastal Gujarat and Uttar Pradesh, exactly the medium voltage, high voltage business, our strategy is to build the way.

20:52 None of this is delivered by capacity and order alone. It is delivered by people, and we have been building our team with the same deliveries. This quarter, we welcome Mr. Umesh Chaya to our leadership team as an industry veteran and retail specialist with more than three decades in the cabling industry and a recognized authority on costing, pricing and distribution net sales. This mandate is to build our distribution reach in our retail franchises with a particular focus on MV and EHV categories where we intend to lead. Behind him, the company has more than 15 leaders at AVP and VP levels across our functions, and we are now assembling a dedicated, sizable export team to take our products U.

21:41 S, Middle East and Africa as our certifications come through. Several further appointments will join the company over the next two quarters and strengthen our team. For a company not long ago was working its way through a resolution plan, This quarter says something simple. The turnaround is not merely complete. It is compounding. It is deliberate. We are deeply grateful for your confidence in Diamond Power, and we are determined to reward it. Thank you. I will now hand back the mic to the moderator. Thank you very much, sir. We will now begin the question and answer session. If you wish to remove yourself from the question queue, you may press star and two.

22:31 Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Rohat Kalid from. Please go ahead. Yeah. Hi, team. Congrats on a strong set of numbers. I just have a couple of questions. We currently have three rod mills, four CCE lines, and four MB train lines which are operational. By when will the fourth rod mill start production and the incremental one saline line and one CCV line underway, when will we start production?

23:18 So the rod mill should start by October 15. The incremental MV silane line should start by September 15 and the CCV line will start in March 2027. Okay. And so in general, this six PCB line that has received an incremental approval with the purchase order being targeted this month, Is that order placed or rather by when can... If if it is if it is placed in this month, by when can the delivery come for this line? So we are getting delivery assurances for August next year. There is one line which is available in the market.

24:03 We should place the order within this month. We have arrived at a price already for the line. And once it is delivered, it shall take us four, five months to commission it. So we are confident that it will get commissioned by December 2027. Okay. Last one for now and then I'll come back in queue. On the export side, what is maybe the timeline for the first export sale that we can expect and and which geographies would we be targeting first and maybe what kind of products can we target here? What are we building maybe in terms of exports over the next few years, if if any guidance you can share? Sorry to interrupt you, sir, but we are unable to hear you.

24:53 The export at present is very negligible, and we are building a team for exports. We have got some key people who have joined us and are joining us in the next ninety days. On the other hand, our certification process for various markets, especially targeting Europe and The U. S. Are on track. So we are confident that quarter three and quarter four, we will see a good export inflow of orders. For this year, we've targeted that we will get the order book of at least INR500 crores before we end the year and this shall be our first year. So we will target conductor business and medium automotive business in the current year.

25:41 Understood. And so just a quick one on talent. So you've been hiring top executives from the industry. Your latest addition, Mr. Jaya, would be a big addition in terms of at least Ravinia's senior leadership team. What gaps do you see at the left maybe across functions like sales, marketing, production and and so on? I will not use the word gap because we are appropriately banded today. But when we say that we will grow from 1,900 close to 4,500 and the year next to 7,500, We need to build a team, we need to strengthen the team at every stage. So most of the hires are going to be in the higher part of the lower middle management and one or two areas we will get leaders also.

26:32 So the major focus will be on higher side of the middle management so that we are able to deliver the quantum increase which we are planning. We have our next question from the line of Mahesh Pajal from ICICA Securities. Please go ahead. Yeah. Congrats on a very good set of numbers. So my first question is on the HDLS side. You have mentioned in one of the sites that HDLS is one of the products for data centers, right? So just want to understand where does it go exactly because from what I understand, HDLS is largely used for reconducting.

27:18 Right? Correct. So HDLS used for reconditioning, that is where the answer is because the data centers are being put up in urban areas. It is like Hyderabad, New Bombay, where the existing transmission lines have to be upgraded or the current carrying capacity has to be increased where data center comes in. So to give you an example of the new Bombay data center coming of Adani, they are upgrading a line with an FCLF conductor. Same way is the case in Hyderabad data center of Microsoft that the incoming transmission line has to be upgraded. It cannot be relayed because of the geographical condition. So one of the important uses of STLS is going to be to Okay.

28:17 And sir, my second question is more on the industry side for AL-fifty nine. So we have seen AL-fifty nine production has gone up significantly over the last couple of years, right? So just want to understand in terms of rate, roughly how much of it is coming from new line versus just like kind of upgrading their existing line. It can just roughly give us the split. Yes. So AL-fifty nine demand is not coming from upgradation projects. It is majorly coming from new transmission lines in the PVCB segment and by the state distribution of utilities. To the extent that Diamond has stopped producing ACSR conductor, which is a traditional conductor because most of the customers who were buying ACSR have now shifted to AL-fifty nine.

29:13 Earlier, traditionally, ACSR used to be the main product of the conductor industry. Now AL-fifty nine is almost 70% of the market. Okay, sir. Great. Thank you. Thank you. We have our next question from the line of from Eco Concept Solutions. Please go. Yeah. Thank you for the opportunity. Sir, with network still negative and having now raised around 1,600 crores to QIP, will this infusion be enough to make DIACABS network positive? And if yes, by when? And out of the 1,600 crores raise, how much is going towards clearing promoter debt legacy liability versus funding new capacity?

30:07 Okay. So on network, why don't you share? So as on June thirty, six, our network is negative by $9.22 crore. But after this QIP process from QRP, which is INR $16.14 crore, our as on today, our net worth is positive by INR $6.91 crore. So yes, now coming to the usage of the funds from QIP, it is very clearly mentioned that we will be spending INR130 crores on our LV cable expansion, INR74 crores on our present balancing equipment part, $6.25 crores for general corporate purposes, we would be returning back INR $3.50 crores to the of the unsecured loan to the promoters and the remaining will go towards long term funding of the working capital. So around $7.50 crores will go towards infusion towards working capital.

31:18 Great. That's all. And sir, on May 2026, PMLA, Vistadar released INR 10,000,000,000 plus of fixed assets and 9,780,000,000 of the MCLP receivable. Has the company started using or monetizing this, and how much of this receivable do you realistically expect to recover in cash? See, the asset was already under use since last four years because under PMLA position was not taken. It was given to the new management. What has happened is now legally, it has got discharged under IBC's clean slate theory. It is basically the right of the new management to take over the assets. So whatever little hurdle was there got settled in May.

32:06 Coming to the receivables, there are INR $9.57 crores of legacy receivables on the books. Post this order, we have put a special team in place comprising of one senior legal hand, one senior guy from accounts and three juniors. And we are doing a first stage evaluation on how much can be recovered. At this stage, it seems around INR300 crores can be recovered for a period of next one year to eighteen months. And that is where we will focus simply feel we'll be able to get it. Okay. And sir, regarding the audit qualification on depreciation of EPE and the company has indicated that the issue is resolved. So how should we think about the depreciation expense going forward?

33:00 So the depreciation which you are simply first quarter will be the depreciation going forward. Same, whatever additions we are going to do, so that the depreciation will be the difference. Okay. And sir, in our previous presentation, we have indicated that our existing capacity at peak would generate around 1,400 crores of revenue. Is the upcoming new capacity already factored into this estimate or it will be incremental to this 14,000 crore revenue potential? No. It's factored in. Accordingly, we have said additions. It will be factored in. Okay. And, sir, just a clarification from the pre... In our... Of the call in call before. So we expect 7,500 crore in FY twenty eight.

33:48 Have you mentioned that? Yes. Yes. And can we expect to do a 14,000 crore in FY twenty nine full utilization? No. No. No. No. No. And so we were expecting somewhere around 75% utilization in next three years. So is there a in that? We are thousand crores. We are a growing company. The market is growing. We are now getting financially stronger. We have zero virtually zero debt on the books. So if we see some opportunities going forward, organic, inorganic, some products doing better. Three years is a long time. We are open in terms of how we can ramp up and scale up.

34:37 We're always on the lookout. You, sir. Ajeev, we request you to rejoin the queue for any follow-up questions. We have our next question from the line of Nishant Bhagrecha from Big Credit Research. Please go ahead. Thank you for the opportunity and for taking us through the business strategy in detail. Sir, I have specific questions regarding your guidance, your order book execution and also a few questions around the broader industry opportunity. So firstly, regarding your near term guidance of FY 'twenty seven of around INR 4,500 crores, which implies the remaining three quarter mix to average roughly around INR 1,200 to INR $12.50 crores per quarter versus INR $6.90 crores in 1Q. So you have explained that seasonality utilization ramp up and order book execution breached this gap.

35:26 So could you help us understand the phasing a little better? Should we expect a more gradual ramp up through Q2 and a sharper acceleration in second half of current financial year? Or should Q2 itself see a meaningful step up? No, it is always gradual. If you see last year also, every quarter we grew almost 50% and seasonality in our industry is very clearly that the first quarter is really affected, second quarter is partially affected. The third and the fourth quarter is always the strongest. In fact, the fourth one is always the biggest quarter because the projects have to be commissioned before March. The customers are willing to lift the material faster.

36:13 Infrastructure projects have their deadlines. Capacity we already have on our side. So it is going to be a gradual ramp up, but we clearly see that we'll be able to meet the target. Sure. And just a follow-up on this question. So FY 'twenty six utilization was, let's say, 4% for cables and 20% for conductor. So with the current order book and also the additional lines coming on stream, where do you see the utilization ending for FY 'twenty seven and FY 'twenty eight, particularly for cables and conductors? So conductors should be around 40% and cables should be around 50%, 52%. This is for 37%?

37:00 7%. Okay. And for 28%? So '28 our LV cable around INR 2,000 crore of capacity will come to picture. Our additional CC line, which can make around INR 600 crores will come into picture. So we will see a well up in conduct up to 60% and the cable also will be around 60%. Okay. And my next question is on margins. So you indicated that you expect to hold the margin profile while delivering the FY 'twenty seven revenue guidance. So should we think of 11%, 12% as the flow FY 'twenty seven or could the mix improvement Our guidance is between 11% to 13%.

37:49 This again depends upon the metal price. If you see in the month of May, aluminum was $3,800 And by the end of June, it came down to $3,000 So 22% or 23% margin went down and it went up from April 1 to May 22 by 20%. So EBITDA is always a product of sale price versus the COGS and the expense. So the absolute contribution becomes constant when you have a client escalation contract with you. So that's why we put in a range of 11% to 13%. And the quarter one, the sale of LV cable and conductor as a percentage to the total sales is higher because of the reasons I explained to you. Medium voltage cable and extra voltage cables are always delivered at the project site. They cannot be stored in warehouses at the customers because they will not have the ability to then move them.

38:50 So as you go to quarter two, quarter three, quarter four, the product mix will change a little bit. Medium and extra high voltage product offtake will increase as a percentage to sales. So EBITDA will be stronger. Okay. So the mix improvement towards 66 or 132 kV or ESP cables and higher value conductors will take margins further from current levels, right? Is that correct? Yes. And I have one question on the data center cable orders. So you have already won four thirty five crores of data center cable or orders, and you are setting up the next line... Next corporate facility partly with the data center in mind. So how large do you see this opportunity becoming for DIACABS over the next two to three years and proportion of your future cable revenue could potentially come from data centers?

39:44 So because we have this large order, so any prequalifications, any questions regarding our revenue will are so we have edge going to the other data center position talking about ourselves. So internally, we have given the team a target of getting at least INR1000 crores of data center orders before 03/31/2027. And in the current year, we are expecting that our data center sales will contribute around INR750 crores before the month of March. And next year, we will give them a target of getting around INR1500 crores. So 20% is what we want to get from data center business current in next year.

40:34 Okay. Okay. And my last question is on the industry. As you mentioned that the thirteen seventy kilometers underground MB cables order in the opening remark. Could you give us the ultimate value of this order and the execution timeline and whether you see similar climate resilience or undergrounding cable... Cabling opportunities emerging from the other states as well? So like Gujarat has come out with a project, which is called robust. The project cost is 22 Hello? Sorry to interrupt, sir. Your line was not clear. You weren't able to hear. Is it clear now? Yes. It's clear. Yes.

41:28 Gujarat is expected to flow INR22000 crores of disaster management orders in the next three years. Out of this INR16000 crores is going to be the cost of 11 kV and 33 kV medium voltage cables. Presently 43 tenders got finalized to around 19 contractors. And this order from Rajesh Power for thirteen seventy kilometers related to Prashin Gujarat, which company is the first order profit. So now we are expecting that by the end of the year, the first INR 4,005 thousand worth of orders will get finalized in Gujarat. Now Gujarat is one example. There are at least nine to 10 states in India which are on the sea coast which have initiated this process tenders in Odisha have come out, tenders in West Bengal have come out, tenders in Karnataka are under the process of coming out.

42:27 Telangana and Andhra Pradesh. Andhra Pradesh very aggressively the tenders are coming out. So I'm confident that as I always tell investors that whatever was the traditional demand of medium voltage similar to 2022 equal and five new markets are coming to the picture. One is disaster management, vertical urbanization, Indian railways, smart city projects and renewable energy. So this is one of the most important part. Thank you. We have our next question from the line from from Sequium Investment. Please go ahead.

43:26 Hello, sir. Can you hear me? Yes. I can. Sir, I have a couple of questions. One, with respect to CapEx per line. Currently, how many lines are operational? One is that. And what's our CapEx per CapEx cost per line? And how much revenue per line on an average can we do? So we have four lines operational. We have four Thailand based lines operational. One is the line installed, but will be commissioned by March. One Thailand based line will get commissioned by September 15. One line which we are ordering at present will get commissioned by December 2027. The cost of silane baseline is between INR 15 crores to 20 crores.

44:16 A cost of a CTV line is line cost is around INR 50 crores. Again, it depends on what size denominator rating you are going to do. The one I'm ordering will cost me around INR50 crores only for the line. The utilities, civil construction, other things cost equal around the INR50 crores. So our CTV line is broadly INR100 crores. Then you can make up to INR 632 crores. If you go for a bigger line of INR $2.20 crores and INR 400 crores, the cost will go to around INR 150 crores. The expected revenue from one CCV line, it again depends on what product you are making. If you are making 66 kV or cable, you can make around 150 kilometers.

45:02 It's a single core cable per month. And one kilometer would again depending on copper, aluminum type of corrugation, but would be broadly INR 30 lakh rupees is a reasonable price you can consider. So around INR 45 crores to 50 crores is the revenue from one line. Understood, sir. Thank you for that. My second question is with respect to our debt, what will be our peak debt going forward? At present... At '28? Yes, yes. So at present, we have one INR75 crore LC, INR5 crore CC limit from one bank. We are not utilizing it at this point of time because you are aware we have a of QIP funds with us.

45:52 Whatever money is required to achieve the target for the current year, we will not need any borrowing. Yes, we are looking at how we can get vendor financing, how we can get dealer financing because there are two parts of the business. If we can efficiently finance support our vendors, support our dealers, we will improve our cash flow and in process we will improve our margins. Next year INR7500 crores, we are estimating that in the current year if we earn around INR 500 crores plus. For the next year, the incremental cash is already available with us. Up to 2027, 2028, we don't expect to have any substantial debt on the books of the company unless we get some good opportunity or we look for some other additional plans, then I cannot tell you. But as of now I think mentally the management and the professionals here are very clear that up to March 2028 our strategy and capacity and our route is very clear as of date.

47:01 Sir, but if my understanding is right, as of March 2026, in your balance sheet, we have around long term borrowing of INR2400 crores. So basically, that was INR 1,900 crores of bonds, 0.01% bonds payable after thirty years. These bonds are owned by the promoter. The net part was a INR 400 crore unsecured loan from the promoter, which has been paid back post QIP. So there is no debt as such other than the residual value of those bonds have discounted on a net present value just stood at INR 47 crores in March 2026. 0.01% coupon rate bonds, right? Yes.

47:51 Payable after thirty years. This was the unsustainable debt of the company in the NCLG plan, which was converted to bonds payable after thirty years and the bonds are now acquired by the promoter from the lenders. So these are unsecured promote held bonds. If discounted on net present value, their value is INR47 crore. Understood, sir. Sorry to interrupt you, sir. Yeah. My question is that. Thank you. Thank you so much. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to only one per participant. Should you have a follow-up question, we request you to rejoin the queue.

48:38 I repeat, participants, please restrict yourself to only one question per participant. Should you have a follow-up question, we request you to rejoin the queue. Next question is from the line of Sanjay Sattathi from. Please go ahead. Hi, sir. Thanks a lot for the opportunity. I just wanted to confirm the guidance that you have given. So you have given about 4,300 crores to 500 crores, 4,500 crores revenue current year and 7,500 crores next year. Is that correct, sir? Correct. And so we noticed that most other wireturn cable companies, they reported significant quarter on quarter growth in this quarter one. And you said that it is because of rain and couple of other things that you did not grow.

49:25 So can you just give some more color in this context of how your peers are doing versus what you are doing? So you have to understand our product mix. Most of the listed companies in India are 85% low voltage. 15% is medium or other products. Diamond Power is the other way around. We are 70%, 80% of our capacity is medium and extra high voltage. Our products are not used during rain. We deliver the product on the project side. If you compare us with other companies which are making copper wires, industrial flexibles, the inside wiring work continues during the rains in real infrastructure projects. So that is one point. Second point is on a Q to Q basis, I don't think any peer has grown so much.

50:19 And if you see our growth in terms of Q1 last year, this year we've almost doubled done 129%. So I think we are doing as the industry is doing even the best of the companies in a lot, one or two of them in fact have grown negatively. So this is a side effect which is more predominantly impacting medium voltage, but impacting all other manufacturers. Thank you, sir. Sanjay, we request you to rejoin the queue for any follow-up questions. We have our next question from the line of Manik Mahaj from Financial Asset Management. Please go ahead. Hi. Thank you so much for the opportunity, and congrats on a great set of quarter. I just wanted to understand from a customer mix or a customer concentration perspective, how much would you say roughly is a dining group versus non a dining?

51:14 So I think we told our Sorry to interrupt, sir. The present order book from Adani is around 40% plus. Our Board mandate is to bring it down to 20% in the end of the year. Presently, are engaging with around six seventy active customers across various verticals. And out of my outstanding order book position, there are around 200 plus customers. So this is the spread of our customer. That's helpful. And the margin guidance that you've run 11% to 13%, is that the same for FY 2028 and there's no operating level as you increase your utilization?

52:07 If you see our cost, which was earlier 9% has come down to 6.5% operations cost. Now if you compare this with any other cable company in the country, it is extremely low because what we make is per kilometer high value product. Our internal target is to bring it down to 6%. I think that would be a very good number compared with any other listed peer. So the EBITDA guidance for the next year, we are confident we will maintain it between what I'm telling you today, but we will work on how to improve upon it. Okay. Thank you. I'll go back to the queue. Thank you so much. Thank you. We have our next question from the line of Rajeshwara from JNMA Ventures. Please go ahead.

52:59 Good morning, Amit and the team. Congrats on terrific turnaround and super set of numbers. As you have given the guidance at the peak revenue potential of 14,000 crores over the next few years, how would the revenue mix look like in terms of VorTe, DHV, LV, exports and data center if you can give an idea? And at that level what margins one can expect? You would expect the customer business to do between 30% to 35%. The low voltage cable business to do between 10% to 15% and the remaining 55% to 50% will continue to be in medium and extra high voltage. Rating We wise, if I bifurcate, the LV cable 1.1 in EBITDA is anytime between 8% to 9%.

53:55 Conductor is between 9% to 10%. Conductor is the HTLS business we can grow would see one or two knots above what we are targeting today. The medium voltage 11 kV should be around 14% to 15%, 33 should be around 16% EBITDA and 66% and above will depend upon the nature of the configuration of the product, but will be between 18% to 22. And considering this, we are seeing an average of 11% to 13% and Rajesh, you've been tracking the company very aggressively. So you are I think you are one person who can tell all of the other audience that we have delivered whatever we have promised you for last two years.

54:41 No, no. It's your team and efforts. But what would be the percentage revenue from exports and data center when you get to INR 14,000 crore revenue mark? Data center data center, I told you we are targeting 20%. And for export, it is too early for me to put a number because we have to test the waters properly. And that's why put a number of INR 500 crores in the current year to get as an order, right? So once we are at the end of the year, I will give you a guideline for the next year. Sure. And if I may ask, Amit Bhai, the challenges, the rate at which you are growing almost doubling, what are the two, three big challenges in terms of handling such a high growth and what can go wrong?

55:30 So every industry has its challenges and some are macro and some are micro, right? The macro challenges are not in our control. Things like the Iran war suddenly resulted in increase in polymer prices. The metal prices went up. So you need to suddenly have 20%, 30% more of incremental working capital. So the macro challenges we are not in our control, but fortunately we have very strong promoters, right. So when a promoter can put in INR500 crores in working capital in a NCLT turnaround company, you can understand his confidence in stomach on putting money. So that such parameters of macro, we are fortunately insulated with the two promoters we have.

56:22 In terms of micro, that is where we are diligently working. And that is where we have not said that we can go from. Now we have INR 1,600 crores, the logical thing would be, please use up your entire capacity in one year and become INR 8,000 crores. We are not saying that because when you produce more, you dispatch more. When you dispatch more, you have more challenges on the ground. So we are realistically growing the team. We are realistically growing the infrastructure. We are working on automation. This Board has given me a special mandate this time, how to use AI and how are we going to now increase the output with the same number of people. So our technology team is working on, it will be on machinery. We are capturing the production at every stage in our production cycle.

57:15 A customer can come to our factory and figure out from which batch of raw material the cable has been manufactured. Because we are dealing with high voltage cable where the customer is interested to know how I produce, but he is equally interested to know what quality of input has gone in. So considering these things, we are focusing on systems, processes, automation, AI and you will see that the operational efficiency numbers going forward will show that. Great. I mean, thank you so much and wish you all the very best. Thank you. Thank you. Ladies and gentlemen, due to time constraints, that would be the last question of the day.

58:00 And I now hand the conference over to the management for closing comments. I'd like to thank the investors for remaining present in very large numbers. We've been welcoming a lot of investors to the factory and we would again be happy to have you right back. Your support in the QIP has really motivated our team and we are confident that whatever confidence has been imposed on us, we will all strive to work hard. Our promoters also are very confident and we are working towards the targets we have promised to you. Thank you very much. We'll see you back again in the next quarter. Thank you, sir. On behalf of Monash Net Worth Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.