Annual Report for financial year ended March 31, 2026

DIFFUSION ENGINEERS LIMITED (CIN: L99999MH2000PLC124154) Registered Office: T-5 & 6, MIDC, Hingana, Nagpur, Maharashtra, India, 440016 Mobile No.: 9158317943 E-mail - cs@diffusionengineers.com Website - www.diffusionengineers.com Date: 14/08/2026 Department of Corporate Services, Listing Department, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Street, C-1, G-Block, Bandra - Kurla Complex Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 544264 Scrip Symbol: DIFFNKG ISIN: INE184O01015 Subject: 1. Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”): Electronic copy of the Notice of the 44th Annual General Meeting (“44th AGM”) and Annual Report for the financial year ended 31st March 2026; and 2. Intimation of cut-off date of 26th August 2026 to determine the eligibility of the members to cast their vote through remote e-Voting and e-Voting during the 44th AGM. Dear Madam/ Sir, This is further to our intimation dated May 16, 2026 regarding convening of the 44th AGM of the Company on Monday, 07th September 2026 through Video Conferencing/ Other Audio-Visual Means (VC/ OAVM) facility. Please find enclosed herewith the electronic copy of the Notice of the 44th AGM, and the Annual Report for the financial year ended 31st March 2026, which is being sent by email to those members whose email address is registered with the Company/ Depository Participant(s). Further, in accordance with Regulation 36(1)(b) of the Listing Regulations, a letter containing the web-link of the website of the Company from where the Annual Report for the financial year ended 31st March 2026 can be accessed, is being dispatched to those members whose email address is not registered with the Company/ Depository Participant(s). Notice of the 44th AGM and the Annual Report for the financial year ended 31st March 2026 are also being uploaded on the website of the Company at www.diffusionengineers.com and on the website of Central Depository Services (India) Limited (“CDSL”) i.e. www.evotingindia.com Further, in terms of Section 108 of the Companies Act, 2013 and Rule 20 of the Companies (Management and Administration) Rules, 2014 (as amended), the Company has fixed Wednesday, 26th August 2026 as the cut-off date to determine the eligibility of the members to cast their vote through remote e-Voting and e-Voting during the 44th AGM. Please take the same on record. Thanking you, Yours truly, For DIFFUSION ENGINEERS LIMITED Chanchal Jaiswal Company Secretary & Compliance Officer (Membership no. A67136) Place: Nagpur Date: August 14, 2026 Registered Office: T- 5 & 6, MIDC, Hingana, Nagpur, Maharashtra, India, 440016 Encl.: as above T HE WORL 44th Annual Report 2025-26 Table of Contents Corporate Overview 03-39 About the Report 04 The Diffusion Approach 05 What sets Diffusion apart 07 What to Watch 11 Leadership Message 12 Corporate Overview 15 Industries we Serve 17 Our Journey - From Spark to Scale 18 Making a Global Mark 20 Competitive Advantage 22 Strategic Advantage 23 From Electrode to Solution The Full Value Chain 25 Closed-Loop Engineering Model 26 Growth Investments 27 Product Portfolio 29 The Integrated Approach 30 Risk Management 31 Numbers that Define Our Story 32 Corporate Social Responsibility 34 Governance Framework 36 Corporate Information 39 Statutory Reports 40-130 Management Discussion & Analysis 40 Notice 56 Board Report 68 Corporate Governance Report 105 Financial Statements 131-230 Standalone Financials 131 Consolidated Financials 180 The Force Behind Industries That Move The World A declaration of our role, Diffusion Engineers Limited is a direct proxy to India’s engineering economy: When India builds, we enable it. When global industries move, we are woven into the material science that makes movement possible. The industries that power economies, build infrastructure and manufacture the goods of modern life are dependent, at their core, on the quality and reliability of the engineering inputs that sustain them. Every weld joint, every wear-resistant surface, and every fabricated component must meet accurate standards of performance that directly determine the operational efficiency, safety and longevity of the end application. Over four decades, the Company has built its business around the consistent delivery of these standards across a diverse range of industrial end-markets, both domestic and international. Our consistent track record of technical reliability, combined with long-standing customer partnerships, has solidified our position across the engineering value chain and it is upon this foundation that we base our confidence in the prospects before us. AAnnnnuuaall RReeppoorrtt 22002255--2266 Corporate Overview Statutory Reports Financial Statements About the Report REPORTING PRINCIPLES 2025, to March 31, 2026. In addition Standards, and the SEBI (Listing to presenting current performance Obligations and Disclosure Diffusion Engineers Limited presents metrics, comparative data spanning Requirements) Regulations of 2015. its Annual Report for the fiscal year the last three to five years has been 2025-26 offering a comprehensive INDEPENDENT ASSURANCE integrated into the report, offering overview of our financial and non- valuable insights into performance financial performance. For the The financial statement’s assurance trends over time. purpose of this report, Diffusion is provided by our statutory auditors Engineers Limited is referred to as, Responsibility Statement: Our Board, as mentioned in the Corporate “Diffusion”, “Diffusion Engineers”, in collaboration with management, Information section. “the Company”, “we”, “our”, and recognizes the shared responsibility “us”. This report emphasizes our for ensuring the integrity of the commitment to creating value information presented in this report. for stakeholders by adopting a Both the Board and management sustainable business approach that affirm that the contents of this prioritizes Environmental, Social, report are presented in a fair, and Governance (ESG) factors. Our transparent, and balanced manner. Annual Report aims to offer both quantitative and qualitative insights REPORTING SCOPE AND into key material aspects, as well as BOUNDARY our interactions with stakeholders. This company’s financial reports, REPORTING PERIOD including the Director’s Report, Management Discussion and This Annual Report comprehensively Analysis, and Corporate Governance assesses the Company’s financial Report, adhere to the Companies and non-financial achievements Act of 2013, Indian Accounting during the period from April 01, TThhee FFoorrccee BBeehhiinndd IInndduussttrriieess TThhaatt MMoovvee TThhee WWoorrlldd 44 5 Annual Report 2025-26 CCoorrppoorraattee OOvveerrvviieeww SSttaattuuttoorryy RReeppoorrttss FFiinnaanncciiaall SSttaatteemmeennttss The Diffusion Approach Built to Sustain the Industries that Build our world From Welding Science to Heavy Engineering Excellence - We Are Diffusion Engineers To invest in Diffusion Across four decades, we have Woven into India’s peripheral story, built relationships with marquee the Company excels at delivering Engineers is to invest corporate brands in India and with competencies that span the full in India’s industrial key industrialised nations worldwide. arc of engineering capability, from backbone. the science of a welding rod to the Our capability spans the entire fabrication of heavy engineering We are a direct proxy to the engineering value chain: from the equipment. country’s large and growing metallurgical precision of a welding engineering economy - a pioneer rod to the fabrication of complex in wear solutions and an established heavy engineering equipment. leader in heavy engineering excellence. The Force Behind Industries That Move The World 4 55 Annual Report 2025-26 Corporate Overview Statutory Reports Financial Statements Forged in Expertise. Trust [Showing first 8,000 characters — download PDF for full document]