Transcript of Earnings Conference call held on 05-11-2026

Date: November 10, 2026 To, To, The Manager The Manager Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex Floor 25, Phiroze Jeejeebhoy Towers, Bandra (East), Dalal Street, Mumbai - 400 051 Mumbai - 400 001 NSE Symbol: DIFFNKG BSE Scrip Code - 544264 Dear Sir/Madam, Subject: Transcript of the Analysts/Institutional Investors Meeting / Call on Financial Results for the quarter and half year ended September 30, 2026 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the transcript of the conference call on Un-Audited Financial Results (Standalone and Consolidated) for the quarter and half year ended September 30, 2026 held on Thursday, November 05, 2026 at 01:00 p.m. (IST). The above information is also available on the website of the Company i.e. https://www.diffusionengineers.com/investors-relation Kindly take the information on record. Thanking You. Yours faithfully, For Diffusion Engineers Limited Chanchal Jaiswal Company Secretary and Compliance Officer ICSI Membership no. A67136 “Diffusion Engineers Limited Q2 FY27 Earnings Conference Call” November 05, 2026 MANAGEMENT: MR. PRASHANT GARG – CHAIRMAN AND MANAGING DIRECTOR – DIFFUSION ENGINEERS LIMITED MR. ABHISHEK MEHTA – CHIEF FINANCIAL OFFICER – DIFFUSION ENGINEERS LIMITED MS. CHANCHAL JAISWAL – COMPANY SECRETARY AND COMPLIANCE OFFICER – DIFFUSION ENGINEERS LIMITED ADFACTORS PR – INVESTOR RELATIONS TEAM – DIFFUSION ENGINEERS LIMITED Page 1 of 14 Diffusion Engineers Limited November 05, 2026 Moderator: Ladies and gentlemen, good day and welcome to the Diffusion Engineers Limited Q2 FY27 Earnings Conference Call. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touchtone phone. I now hand the conference over to Mr. Prashant Garg, Chairman and Managing Director, Diffusion Engineers Limited. Thank you, and over to you, sir. Prashant Garg: Good afternoon everyone and welcome to Diffusion Engineers Limited earnings conference call for the 2nd quarter and half year ended 30th September 2026. I am joined today by Mr. Abhishek Mehta, our CFO, Ms. Chanchal Jaiswal, our Company Secretary and Compliance Officer, and our Investor Relations team from Adfactors PR. Thank you for taking the time to join us today. The investor presentation and media release have been uploaded to the stock exchanges and are also available on our website. I will begin by discussing the broader industry environment, followed by the company's business performance, key developments, and outlook. Thereafter, Abhishek will take you through the financial performance in greater detail. Industry environment. Let me begin with the broader economic environment. India continues to grow at a healthy pace and remains one of the fastest-growing major economies globally. The country's infrastructure development, manufacturing expansion, and sustained government spending continue to create opportunities across core industrial sectors. We are also witnessing encouraging momentum in India's core industries. According to the latest data released by the Ministry of Commerce and Industry, the output of 9 core industries recorded a growth of 7.9% in September '26, compared with 5.9% in August '26. This represents the highest growth in the past 30 months under the new series. The growth was broad-based, with 6 out of 9 core industries reporting positive growth. Iron ore production increased by 18.4%, electricity generation by 11.4%, coal production by 10.7%, refinery products by 10.3%, cement by 9.8%, and steel by 4.9%. These trends are particularly encouraging for us as cement, steel, power, mining, and other process industries are among our key end-user sectors. Continued infrastructure investment and industrial activity create demand for specialized welding consumables, wear protection products, heavy handling equipment, and maintenance solutions. Business performance and momentum. Coming to our business, we have delivered a strong performance during the quarter, with consolidated revenue from operations growing by 50.7% year-on-year to INR125.93 crores. This growth reflects healthy demand across our business segments, supported by a strong opening order book and improved execution. We have witnessed encouraging business momentum across heavy engineering, wear plates, wear parts, and welding consumables. Our diversified business model along with long-standing Page 2 of 14 Diffusion Engineers Limited November 05, 2026 customer relationships and focus on specialized engineering solutions continues to support our growth. Our consolidated order book stood at INR226.79 crores as on September 30th, 2026, compared with INR174.1 crores as on March 31st, 2026. This represents an increase of approximately 30.3% since the beginning of the financial year. On top of the increased execution, we continue to see healthy order inflows across our key business segments, providing good visibility for the upcoming quarters. While business momentum remains encouraging, the operating environment continues to present certain challenges. Geopolitical uncertainties, disruption in global supply chains have resulted in an increase in input costs, particularly for certain raw materials and specialty ferroalloys and metals. Energy costs have also risen, adding to the overall cost pressures. These factors have had an impact on our operating margins during the quarter. We are closely monitoring the situation, focusing on procurement efficiencies, cost optimizations, and better utilization of resources to manage these pressures, and also passing on the cost increases to our customers. On the capacity expansion front, I am pleased to share that the major capital expenditure undertaken by the company is now nearing completion. The new manufacturing infrastructure capacities are being operationalized in a phased manner and are expected to progressively contribute to our business. These investments will further strengthen our manufacturing capabilities, improve operational efficiencies, and support our ability to undertake larger and more complicated specialized orders. As utilization improves, we expect these capacities to contribute meaningfully to the company's growth in top line as well as bottom line in the coming years. Alongside capacity expansion, we continue to place strong emphasis on product development and innovation. Our R&D team is constantly working on developing new solutions and improving existing solutions to address the evolving requirements of customers across cement, steel, power, mining, and other industries. Our objective is to move further up the value chain by offering differentiated, technology-driven, and value-added engineering solutions. Going forward, our strategic priorities remain centered around 3 growth engines, that is commissioning and ramping up of our expanded manufacturing capabilities, strengthening our core business, and developing new solutions and products and value-added solutions. At the same time, we are exploring opportunities to leverage our manufacturing engineering capabilities in adjacent sectors. Railways is one such area where we are progressing through the development and qualification process, and recently we have received the qualification to manufacture loco shells for Indian Railways. We are also exploring opportunities in the defence sector where our engineering and manufacturing capabilities can be effectively leveraged. While these opportunities have longer Page 3 of 14 Diffusion Engineers Limited November 05, 2026 gestation cycles, we believe that successful qualification participation can meaningfully create opportunities over the medium [Showing first 8,000 characters — download PDF for full document]