Diamond Power Infrastructure Ltd Q1FY26 – From NCLT Graveyard to Adani’s Favourite Cable Guy, but at 209x P/E?!
1. At a Glance
Diamond Power Infrastructure (BSE: 522163, NSE: DIACABS) is the corporate version of a daily soap twist. Once bankrupt with debts of ₹3,300 crore, now reborn under new promoters (GSEC & Rakesh Shah) with a market cap of ₹7,947 crore at ₹151/share. Revenues for FY25 were ₹1,193 crore (+142% YoY), PAT ₹38 crore (+34% YoY), OPM 6.1%. Stock is up 810% in 3 years, turning penny stock gamblers into legends at Vadodara chai tapris.
But here’s the kicker: EPS ₹0.72, P/E 209x, book value –₹16.7. Negative reserves, weak margins, debt of ₹463 crore. Basically, the company is a post-bankruptcy phoenix—but one with burnt feathers still smouldering.
2. Introduction
Diamond Power (DPIL) is India’s only T&D player making cables, conductors, and towers under one roof. Sounds like a dream integrated player, right? Until you read the backstory: failed expansion, NCLT case, banks taking a 85% haircut. In 2022, new owners infused some equity, issued bonds, and voila—the company crawled out of insolvency like a drunk uncle climbing out of a manhole.
Today, it supplies to Adani Energy, ABB, JSP Projects, Texmaco—basically anyone wiring up India’s power infra. Order book? ₹1,500+ crore with mega LOIs from Adani alone worth ₹1,800+ crore this year. Investors are drooling. But profits? ₹20 crore per quarter on ₹300 crore revenue. That’s thinner than hospital khichdi.
3. Business Model – WTF Do They Even Do?
DICABS = “DIAmond CABleS.”
Conductors: From 11 kV rural lines to 765 kV HVDC monsters. Recent focus on AL-59 conductors (lightweight, high strength) for Adani’s mega projects.
Cables: LV/HV up to 132 kV, EHV up to 550 kV. New MV line commissioned in Feb 2025.
Towers: 48,000 MTPA capacity, supplying to discoms and EPC players.
EPC services: Turnkey T&D projects (historically loss-making, now scaled back).
USP: Only Indian company with integrated conductor, cable, and tower facilities under one roof. Translation: “hum ghar pe banate hain, ghar pe lagate hain, aur aapko bill bhejte hain.”
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹302 Cr
₹224 Cr
₹334 Cr
+34.8%
–9.6%
EBITDA
₹31 Cr
₹24 Cr
₹14 Cr
+29.2%
+121%
PAT
₹20.1 Cr
₹17 Cr
₹8 Cr
+20.8%
+151%
EPS (₹)
0.38
0.31
0.15
+22%
+153%
Commentary: Sales growth solid, PAT improving. But margins remain wafer-thin. Market is valuing this turnaround story at luxury perfume multiples.
Question: Do you trust a company that went bankrupt once to suddenly become the Ambani of cables?
5. Valuation Discussion – Fair Value Range Only
P/E Method
EPS (TTM) = ₹0.72. Industry P/E = 40x. Range = ₹29 – ₹45. (vs CMP ₹151 🤯)
EV/EBITDA Method
EV = ₹8,396 Cr, EBITDA = ₹74 Cr. EV/EBITDA = 113x vs industry ~15–20x. Range = ₹40 – ₹70.
