Transcript of the Analysts/ Institutional Investors Meeting/ Call on Financial Results for the quarter ended June 30, 2026

Date: August 18, 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 ended June 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 ended June 30, 2026 held on Thursday, August 13, 2026 at 02:30 p.m. (IST). The above information is also available on the website of the Company i.e. https://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 Membership no. A67136 “Diffusion Engineers Limited Q1 FY27 Earnings Conference Call” August 13, 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 Page 1 of 21 Diffusion Engineers Limited August 13, 2026 Moderator: Ladies and gentlemen, good day and welcome to Diffusion Engineers Limited Q1 FY'27 Earnings Conference Call. As a reminder, all participant lines will be in the 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 zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Prashant Garg, Chairman and Managing Director from Diffusion Engineers Limited. Thank you and over to you, sir. Prashant Garg: Good afternoon, everyone, and welcome to Diffusion Engineers earnings conference call for the first quarter ended 30th June 2026. We are delighted to have you join us today. I'm joined by Mr. Abhishek Mehta, our CFO, Ms. Chanchal Jaiswal, Company Secretary and Compliance Officer and our investor relations team from Adfactors PR. The investor presentation and media release have been uploaded to the stock exchanges and are available on our website. I will share some key highlights, recent developments, and our outlook for the future before we open the floor for questions. Let me begin with broader industry environment. We continue to see a favorable structural environment for the sectors we serve in. India's core industry maintains strong momentum during Q1 FY'27. Provisional industrial data indicate finished steel production has increased by approximately 6% annually, and it has further grown to 8.3% during April to June 26 quarter. The cement sector also remains bullish. Industry expectations point towards approximately 7% to 8% volume growth in FY'27, supported by infrastructure spending, housing and urbanization. These trends are relevant for us because cement, steel, power, mining and other process industries represent important end markets for our products. We are also seeing a continued emphasis on infrastructure manufacturing investment in India. The FY'27 Union Budget provides for substantial capital expenditure in the railways sector, with total railway expenditure including extra-budgetary resources of approximately INR2.9 lakh crores. This broader investment cycle supports opportunities across engineering, wear protection, maintenance and specialized and precision manufacturing. At the same time, we remain mindful of global uncertainties, commodity price movements, freight costs and geopolitical developments. Steel, ferro-alloys and other specialty metals remain important components of our raw material basket. Our approach is therefore to maintain pricing discipline, closely manage procurement and increasingly use contractual mechanisms that provide appropriate protection against raw material volatilities. Moving to our order position, we remain encouraged by the momentum we are seeing across all the core business areas. As of 30th June 2026, our consolidated order book stands at INR209 crores compared with INR174 crores in March 2026, representing a sequential increase of approximately 20.4%. The order book is also becoming increasingly diversified. Our Heavy Engineering order book Page 2 of 21 Diffusion Engineers Limited August 13, 2026 stands at INR159 crores, Wear Plates and Wear Parts at INR26.42 crores and Welding Consumables at INR24.22 crores. This particularly strong increase in Welding Consumables order book is encouraging because it reflects healthy demand across our recurrent and maintenance-oriented customer base. We believe our order book provides good visibility for the coming quarters. Importantly, our business is not solely dependent on large project orders. A significant portion of our business is linked to maintenance replacement and reconditioning requirements across the installed industrial base. During the period we secured multiple significant domestic orders across cement, defense and power sectors, including an order worth approximately INR9.88 crores for the supply of VRM and separator parts for the cement industry. A INR8.16 crores order for the supply, maintenance of roller-press rolls for cement industry, a INR10.63 crores order for supply of roller assemblies and retrofitting of shafts for the cement industry, INR7.49 crores order for supply of Flux-Cored Wire for defense and INR26.31 crores order for the supply of RAPH rotor assembly for power industry. These orders aggregating to approximately INR62.47 crores further strengthen the company's order pipeline and reinforces its presence across key industrial sectors. This creates a relatively resilient demand profile because customers need to maintain equipment availability and minimize unplanned breakdown, even when the broader capital expenditure cycle may moderate. Our experience has also shown that customers are increasingly moving from purchasing individual welding consumables towards ready-to-fit parts, specialized engineering solutions and total solutions. This structural shift plays directly to our strengths because we have progressively moved up the value chain from consumables to wear plates, wear parts, reconditioning and heavy engineering. One of the most important developments for us is to progress on our capacity expansion program. We are executing a roughly INR100 crores expansion program which is designed to materially increase our manufacturing capacity along across electrodes, wear plates and heavy engineering. Our heavy engineering capacity is being expanded from 9000 metric ton to 18000 metric ton, while our electrode capacity is also being expanded, supported by a new strip slitting capability that will strengthen our backward integration. The expanded manufacturing infrastructure will allow us to cater to larger and more complex requirements across our customer sectors. Our new manufacturing infrastructure at Nagpur is therefore not simply an incremental capacity addition. It is an important step in strengthening our integrated manufacturing model and increasing our ability to capture larger customer requirements. As these capacities ramp up, our focus will remain on a disciplined commissioning process, maintaining product quality and progressive improvement of capacity utilization. Page 3 of 21 Diffusion Engineers Limited August 13, 2026 We have historically delivered a strong growth trajectory even when operating at relatively high utilization levels. Our 5-year consolidated revenue CAGR has been approximately 21% [Showing first 8,000 characters — download PDF for full document]