Diffusion Engineers Limited — Earnings Release 2026

Aug 13, 2025

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Date: August 13, 2025

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, 2025

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 UnAudited Financial Results for the quarter ended June 30, 2025. The same is also being disseminated on the Company's website at https://www.diffusionengineers.com/investorsrelation.

Thanking You. Yours faithfully,

For Diffusion Engineers Limited

Chanchal Digitally signed by Chanchal Rajesh Rajesh Jaiswal Jaiswal Date: 2025.08.13 16:59:11 +05'30' Chanchal Jaiswal Company Secretary and Compliance Officer Membership no. A67136

Enclosed as above.

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Diffusion Engineers Limited

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Media Release

Company declares Q1 FY26 consolidated revenue with a growth of 13.5% and PAT growth of 68.62%

Registers significant growth in order book this quarter which stands at Rs. 1721.87 Mn on 30[th] June 2025 Y-o-Y

Nagpur, 13 August, 2025: Diffusion Engineers Limited (BSE: 544264, NSE: DIFFNKG), amongst leading manufacturers of welding consumables, wear plates, wear parts, and heavy engineering machinery for core industries in India with nearly 40 years of “excellence in innovative engineering solutions” in the industry, announced its unaudited financial results for the first quarter ended 30[th] June, 2025. These financials are as per the IND AS accounting guidelines.

Key Financial Highlights (Rs. In Mn):

		Standalone	Standalone			Consolidated	Consolidated
Particulars	Q1 FY26	Q1 FY25	Q4 FY25	YoY%	Q1 FY26	Q1 FY25	Q4 FY25	YoY%
Revenue from operations	733.72	672.61	1,008.89	9.09%	806.65	710.82	1,024.48	13.48%
EBIDTA*	86.54	79.36	135.02	9.05%	105.81	92.21	147.01	14.75%
PAT	142.04	64.62	120.40	119.81%	122.64	72.73	130.10	68.62%
EPS (In Rs.)	3.80	2.31	3.22	64.50%	3.26	2.58	3.49	26.36%

• Excluding Other Income and share of profit/ Loss of Associates and Joint venturess

Order Book Status (Rs. In Mn):

Type	June-25	Mar-25
Heavy Engineering	1,379.85	645.95
Wear Plates and Wear Parts	223.71	265.07
Welding Consumables	118.31	121.08
Grand Total	1,721.87	1,032.09

Diffusion Engineers Limited

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Standalone Performance Highlights – Quarter ended 30[th ] June 2025

• Revenue from operations for the financial year was Rs. 733.72 Mn in Q1 FY26, as against Rs. 672.61 Mn in Q1 FY25, YoY increase of 9.09 %. Stronger market conditions, operational excellence, and effective execution—alongside increased orders, improved utilization of capacity, and well-planned pricing measures—contributed to this performance uplift.

• EBITDA (excluding Other Income) was at Rs. 86.54 Mn in Q1 FY26 as against Rs. 79.36 Mn in Q1 FY25, increase of 9.05 %. Growth was primarily driven by increased revenue, prudent cost control, and the advantages of operating leverage

• EBITDA Margin (excluding Other Income) for the quarter stood at 11.79%.

• Profit after Tax stood at Rs. 142.04 Mn in Q1 FY26 compared to Rs. 64.62 Mn in Q1 FY25, YoY increase of 119.81% primarily due to the increase in improved EBDITA coupled with reduced finance costs and increase in other income.

Consolidated Performance Highlights – Quarter ended 30[th] June, 2025

• Revenue from operations for the financial year was Rs. 806.65 Mn in Q1 FY26, as against Rs. 710.82 Mn in Q1 FY25, YoY increase of 13.48%. Strong performance was fueled by solid growth across all key product segments, reinforced by substantial export gains and steady domestic demand

• EBITDA (excluding Other Income) was at Rs. 105.81 Mn in Q1 FY26 as against Rs. 92.21 Mn Q1 FY25, increase of 14.75% . The improvement was primarily due to higher revenue, effective cost management, operating leverage.

• EBITDA Margin (excluding Other Income) for the quarter increased by 15 bps points to 13.12%

• Profit after Tax stood at Rs. 122.64 Mn in Q1 FY26 compared to Rs. 72.73 Mn in Q1 FY25, YoY increase of 68.62% .

Diffusion Engineers Limited

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Management Comment:

Commenting on the Company’s performance, Mr. Prashant Garg, Chairman & Managing Director, Diffusion Engineers Ltd said :

“During the first quarter ended 30th June 2025, we recorded revenue of ₹806.65 million, EBITDA (excluding Other Income) of ₹105.81 million, and PAT of ₹122.64 million. Q1 FY26 marked a steady start to the year, with revenue growing 13.48% YoY, driven by strong performance across all major product lines. This growth was further supported by a sharp rise in export sales and healthy domestic demand across key customer segments.

Our order book at the close of Q1 FY26 stands higher than the same period last year, supported by consistent inflows from both domestic and export markets. We anticipate sustained positive momentum over the next three quarters, driven by the execution of carry-forward orders and fresh wins secured during the quarter.

We are pleased to announce that Diffusion Engineers Limited has secured a significant domestic order valued at approximately ₹48 crore for the supply of sHigh-Pressure Grinding Rolls (HPGRs) to the cement industry. Scheduled for execution over the next 11 months, this order reinforces our leadership in delivering high-performance solutions for critical industrial applications. It also reflects the trust our customers place in our capabilities and further enhances our revenue visibility for the current financial year.

Looking ahead, with a robust order book, healthy demand across core sectors, and our ongoing operational initiatives, we are confident of delivering sustainable growth and improved profitability in the coming quarters. I extend my sincere gratitude to every member of the Diffusion family, our valued clients, creditors, bankers, financial institutions, and all other stakeholders. Your trust and support continue to inspire us to strive harder and achieve greater milestones.

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

Diffusion Engineers Limited

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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 and flux cored wires which are utilized for manufacturing wear resistance plates (commonly known as wear plates). These wear plates then become an integral part of majority of large industrial equipment which are made in our heavy engineering division and are significant contributor in manufacturing of industrial equipment. With strategically located manufacturing units in Nagpur, Maharashtra, we benefit from central connectivity, which facilitates efficient logistics, reduced transit times, and cost optimization.

For further information, please contact:

CS Chanchal Jaiswal Mr. Amit Sharma / Mr. Rupesh Rege Diffusion Engineers Limited Adfactors PR Pvt Ltd Email: amit.sharma@adfactorspr.com rupesh.rege@adfactorspr.com Email: info@diffusionengineers.com www.diffusionengineers.com www.adfactorspr.com

Caution Concerning Forward- Looking Statements:

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factor s that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other risk factors, viewers are cautioned not to place undue reliance on these forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.