Diffusion Engineers Limited — Q3 FY26
Diffusion Engineers delivered a strong Q3 FY26 with consolidated revenue of ₹182.4 crore (+27.3% YoY) and PAT of ₹12.0 crore (+69.1% YoY), driven by robust demand from cement, s...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
What is the acquired company and how does it fit?
Asked by Vun Jane, Dollar Capital
Management explained the company's purpose, strategic fit, and manufacturing rights.
Read the exchange
Question
So just wanted to understand like what is this company and it is the pre-revenue company from what I've seen and you got 10%. So how does it fit in?
Management (likely CMD)
This company is involved in the design and development of advanced systems for aerospace, marine and land applications... we also get manufacturing rights once a prototype is approved.
Answered
High priority
Is the 10% stake just to be a welding supplier?
Asked by Vun Jane, Dollar Capital
Management directly refuted the assumption and clarified broader manufacturing intent.
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Question
Sir you have just bought 10% so that is just so that you can be the welding supplier to them...
Management (likely CMD)
No, we are not just a welding company. We are an engineering company now... we will get the manufacturing rights to manufacture the missile as well as the launcher.
Partial answer
Medium priority
How was the pre-revenue company valued at 40-45 cr?
Asked by Vun Jane, Dollar Capital
Management cited valuation reports but did not provide specific methodology or numbers.
no specific valuation method discloseddeferred to valuers
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Question
Since you have paid like I think you have valued it something between 40 to 45 cr. So sir how have you valued this company since they don't have any revenue?
Management (likely CFO)
We have done valuation based on the valuation reports received from the valuers and also the estimated value of the PSO which they have received...
Partial answer
High priority
What is the revenue and margin guidance for FY27?
Asked by Vun Jane, Dollar Capital
Management gave a range for margin expansion but revenue guidance was vague ('late teens').
vague revenue growthmargin range not specific
Read the exchange
Question
What is your guidance for FY27 revenue and margin guidance?
Management (likely CMD)
For revenue guidance we will be in late teens for sure and as well as on the margins... our EBITDA would remain in this level maybe 100 to 200 bps we expect to increase.
Answered
High priority
Status of L1 railway contracts for Vande Bharat?
Asked by Vun Jane, Dollar Capital
Management provided specific status update on LOIs and assessment.
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Question
You had indicated in the past that you were L1 in some railway contracts for Vande Bharat. We just wanted to know what's the status on that.
Management (likely CMD)
We have received LOI for so there were six contracts... we received LOIs for already three such contracts... capacity assessment has been carried out by RITES.
Answered
Medium priority
Timeline for railway contract execution?
Asked by Vun Jane, Dollar Capital
Management gave a clear timeline range.
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Question
What is the timeline for this? If you can indicate something.
Management (likely CMD)
These contracts will be executed within the next 3 to 5 months depending on the size of the contracts.
Evasive
Medium priority
Are railway contracts higher margin?
Asked by Vun Jane, Dollar Capital
Management avoided giving margin details, citing developmental nature.
declined to give margin estimatedownplayed materiality
Read the exchange
Question
Are they like higher margin contracts compared to your other roller press roller and other orders?
Management (likely CMD)
Because these are developmental orders we can't really comment on the margins as of now... even if high margin or no margin the numbers are not going to make significant difference.
Answered
High priority
Revenue potential of entire family at 600?
Asked by Vijill Sha, RTL Investments
Management confirmed the revenue target range and basis.
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Question
Did I get it correct that you said that once your capacity of funds the revenue potential of entire family would be at 600?
Management (likely CMD)
We are investing close to 100 cr. So considering that after our capacities go fully live and utilization comes to around 85% we expect to be able to do a turnover of 600 to 700 crores.
Answered
High priority
Timeframe to reach 85% capacity utilization?
Asked by Vijill Sha, RTL Investments
Management gave a specific timeframe range.
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Question
By what time frame do you think that your capacity utilization will reach around 85%?
Management (likely CMD)
We expect it to happen by anywhere between FY28 and FY29.
Answered
High priority
Credentials for making missiles and launchers?
Asked by Vijill Sha, RTL Investments
Management explained existing defense credentials and contract manufacturing role.
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Question
What are your credential in making missile or launcher? ...if the other company gets a prototype approved, is it allowed to be contract manufactured?
Management (likely CMD)
We are already a defense supplier... we have also supplied some parts to Skyroot... our bid is more on the contract manufacturing side.
Answered
High priority
Pathway to revenue from capacity expansion?
Asked by Saiaki, Nan Capital
Management explained both volume and complexity benefits.
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Question
Could you provide some more color on the pathway to get to that revenue? For example, is this additional capacity going to help us run through the order book quickly or manufacture more complex goods?
Management (likely CMD)
The additional capacity will first of all enable us to get more orders because we are restricted by the number of orders we accept... we are adding to our machining capabilities which will enable us to manufacture more complex and precision parts.
Partial answer
Medium priority
Roller revenue in 9 months and outlook for FY26/27?
Asked by Tunel Jane, Nirval Bank security
Management gave FY26 estimate but did not provide the 9-month actual figure.
no specific 9-month number givenvague growth rate
Read the exchange
Question
What was the roller revenue which has been included in 9 month and where you see it in FY26 and 27?
Management (likely CMD)
Roughly around by the end of this year we will do close to around 60 to 70 CR in by the end of FY26 and for FY27 we expect this to grow in similar sort of percentage levels as indicated by ABC before.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue target of 600-700 cr with new capacities | ₹650 cr | ₹101 cr | Overstated vs filing |
| Roller revenue FY26 estimate 60-70 cr | ₹65 cr | ₹101 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.