Press / Media Release for the Un-Audited Financial Results for the Quarter ended June 30, 2026

Date: August 11, 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: Press/Media Release for the Un-Audited Financial Results for the quarter ended June 30, 2026 Pursuant to regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith Press/Media Release on the Un- Audited Financial Results for the quarter ended June 30, 2026. The same is also being disseminated on the Company's website at https://diffusionengineers.com/investors-relation/ Thanking You. Yours faithfully, For Diffusion Engineers Limited Chanchal Jaiswal Company Secretary and Compliance Officer Membership no. A67136 Enclosed as above. Diffusion Engineers Limited Media Release Diffusion Engineers Ltd. (DEL) Reports Strong Start to FY27 with 36.50% Revenue Growth • Highest ever Q1 Operational Revenue at Rs 1,101.08 Mn • EBITDA stood at ₹141.54 Mn, up 33.76% YoY, with EBITDA Margin at 12.85% • Strong order book growth across Heavy Engineering, Wear Plates & Wear Parts, and Welding Consumables provides healthy revenue visibility for the coming quarters Company registered growth of PAT 35.98% to 166.77 Mn Nagpur, 11th August, 2026: Diffusion Engineers Limited (BSE: 544264, NSE: DIFFNKG), amongst leading manufacturers of welding consumables, wear plates, wear parts, and heavy engineering equipment for core industries in India with 40 plus years in the industry, announced its unaudited financial results for the first quarter ended 30th June, 2026. These financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) Key Financial Highlights (Rs. In Mn): Consolidated Standalone Q1 Q1 Q4 Q1 Q1 Q4 Particulars YoY% YoY% FY27 FY26 FY26 FY27 FY26 FY26 Revenue from 1,101.08 806.65 1415.74 36.50% 959.13 733.72 1,132.70 30.72% operations EBITDA* 141.54 105.81 206.88 33.76% 121.54 86.54 154.13 40.44% PAT 166.77 122.64 159.70 35.98% **99.79 142.04 116.72 -29.75% EPS Diluted (In Rs.) 4.47 3.26 4.29 **2.68 3.80 3.09 *Excluding Other Income and share of profit/ Loss of Associates and Joint ventures **The decline in Standalone PAT and PAT margin in Q1FY27 is primarily due to lower Other Income, as Q1 FY26 included Dividend income of ₹50.67 Mn from a wholly owned subsidiary. Diffusion Engineers Limited Order Book Status (Rs. In Mn): Type June-25 Mar-26 Jun-26 Heavy Engineering 1,379.85 1,421.64 1,590.23 Wear Plates and Wear Parts 223.71 220.08 264.22 Welding Consumables 118.31 99.37 242.15 Grand Total 1,721.87 1,741.09 2,096.60 Consolidated Performance Highlights – Quarter ended 30th June, 2026 • Revenue from operations was Rs. 1,101.08 Mn in Q1 FY27, as against Rs. 806.65 Mn in Q1 FY26, YoY increase of 36.50% • EBITDA (excluding Other Income) was at Rs. 141.54 Mn in Q1 FY27 as against Rs. 105.81 Mn in Q1 FY26, an increase of 33.76% • EBITDA Margin (excluding Other Income) for the quarter stood at 12.85% • Profit after Tax stood at Rs. 166.77 Mn in Q1 FY27 compared to Rs. 122.64 Mn in Q1 FY26, YoY increase of 35.98%. Standalone Performance Highlights – Quarter ended 30th June 2026 • Revenue from operations was Rs. 959.13 Mn in Q1 FY27, as against Rs. 733.72 Mn in Q1 FY26, YoY increase of 30.72%. • Other Income reduced primarily due to non-recurrence of dividend income of ₹50.67 Mn from a wholly owned subsidiary in Q1 FY26. • EBITDA (excluding Other Income) was at Rs. 121.54 Mn in Q1 FY27 as against Rs. 86.54 Mn in Q1 FY26, increase of 40.44%. • EBITDA Margin (Excl. Other Income) for the quarter stood at 12.67%. • Profit after Tax stood at Rs. 99.79 Mn in Q1 FY27 compared to Rs.142.04 Mn in Q1 FY26, YoY decrease of 29.75% due to reduction in Other Income, though the business delivered stronger operational performance. Diffusion Engineers Limited Management Comment: Commenting on the Company’s performance, Mr. Prashant Garg, Chairman & Managing Director, Diffusion Engineers Ltd said: “The Company commenced FY27 on a strong note, delivering healthy growth across key financial parameters. Total Revenue from Operations stood at ₹1,101.08 Mn, registering a 36.50% year- on-year growth over Q1 FY26. EBITDA increased by 33.76% to ₹141.54 Mn, while Profit Before Tax grew by 29.87% to ₹201.36 Mn. Profit After Tax stood at ₹166.77 Mn, up 35.98% year-on-year, reflecting the continued strength of the Company’s underlying business performance. The Company's order book remained robust and diversified, providing strong revenue visibility for the coming quarters. As of 30 June 2026, the order book stood at ₹2,096.60 Mn, compared with ₹1,741.09 Mn as of 31 March 2026, representing a sequential increase of approximately 20.4%. The broad-based growth across these segments reflects sustained customer demand and continued confidence in the Company's products and execution capabilities. During the quarter, the Company continued to strengthen its position across high-performance welding consumables, wear protection solutions, and specialized engineering services. The healthy order inflow across Heavy Engineering, Wear Plates and Wear Parts, and Welding Consumables demonstrates the Company's ability to address diverse customer requirements across industrial applications. The Company's focus on operational efficiency, disciplined cost management, and execution excellence supported healthy profitability, with EBITDA margin remaining strong at 12.85% despite the ongoing input-cost environment. The Company remains focused on converting its strong order pipeline into sustainable revenue growth while maintaining execution discipline. The healthy order book, coupled with a diversified product portfolio and strong customer relationships, provides a solid foundation for continued growth. Management remains optimistic about the medium to long-term outlook and will continue to focus on capacity utilization, operational efficiencies, timely execution of projects, and expanding its presence across existing and new markets. Looking ahead, the Company remains committed to delivering sustainable and profitable growth. With continued investments in capabilities, a strong and diversified order pipeline, and an increasing focus on value-added products and specialized solutions, the Company is well positioned to capitalize on emerging opportunities across the industrial and infrastructure sectors. Diffusion Engineers Limited Management will remain focused on strengthening customer relationships, enhancing operational performance, and creating long-term value for all stakeholders. We extend our sincere appreciation to our employees, customers, creditors, bankers, financial institutions, and all other stakeholders for their continued trust and support. We remain committed to maintaining this momentum and delivering sustainable value in the periods ahead. Thank you for your continued faith in Diffusion Engineers” About Diffusion Engineers Limited Our Company incorporated in 1982, pioneer in advanced manufacturing of welding consumables, wear plates, wear parts and heavy engineering machinery to diverse industries, including cement, steel, power, and mining. Our Company is dedicated to providing specialized repairs and reconditioning services for heavy machinery and equipment. Additionally, we are also involved in trading of anti-wear powders and welding and cutting machinery. We provide super conditioning process at our manufacturing facilities, a surface treatment solution for machine components that enhances wear resistance, eliminates stress and improves their repairability ultimately extending their lifespan and reducing production costs. We have developed a synergistic system of forward integration whereby we manufacture special purpose electrodes [Showing first 8,000 characters — download PDF for full document]