Diffusion Engineers Limited — Earnings Release 2025

May 16, 2025

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Date: May 16, 2025

To, The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex Bandra (East), Mumbai - 400 051 NSE Symbol: DIFFNKG

To, The Manager Corporate Relationship Department BSE Limited Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001 BSE Scrip Code - 544264

Dear Sir/Madam,

Subject: Press/Media Release for the Audited Financial Results for the quarter and year ended March 31, 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 Audited Financial Results for the quarter and year ended March 31, 2025. The same is also being disseminated on the Company's website at https://www.diffusionengineers.com/investors-relation.

Thanking You. Yours faithfully,

For Diffusion Engineers Limited

CHANCHAL Digitally signed by CHANCHAL RAJESH RAJESH JAISWAL JAISWAL Date: 2025.05.16 15:29:53 +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 Delivers Highest-Ever Standalone Quarterly Revenue in Q4 FY25; PAT Margins Improve by more than 61% YoY

Achieves Standalone 22.90% YoY Revenue Growth in FY25, Anticipates Continued Momentum in FY26”

Nagpur, 16 May, 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 audited financial results for the fourth quarter and year ended 31[st] March, 2025. These financials are as per the IND AS accounting guidelines.

Key Financial Highlights (Rs. In Mn):

		Standalone	Standalone			Consolidated	Consolidated
Particulars	Q4 FY25	FY25	FY24	YoY%	Q4 FY25	FY25	FY24	YoY%
Revenue from operations	1,008.89	3,160.07	2,571.26	22.90%	1,024.48	3,351.96	2,781.45	20.51%
EBIDTA*	135.02	408.82	302.72	35.05%	147.01	470.76	388.69	21.12%
PAT	120.40	337.53	233.97	44.26%	130.10	360.40	308.05	17.00%

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

Standalone Performance Highlights – Quarter ended 31[st] March, 2025

• Revenue from operations for the financial year was Rs. 1,008.89 Mn in Q4 FY25, as against Rs. 691.65 Mn in Q4 FY24, YoY increase of 45.87 %. This growth was mainly due to sustained market demand, enhanced execution, and higher capacity utilization due to improvement in operational efficiency

• EBITDA (excluding Other Income) was at Rs. 135.02 Mn in Q4 FY25 as against Rs. 86.88 Mn Q4 FY24, increase of 55.41 % due to reduction in direct expenses resulting higher gross profit margin and additionally better absorption of other costs

• EBITDA Margin for the quarter stood at 13.38%, YoY improvement of 82 bps

Diffusion Engineers Limited

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• Profit after Tax stood at Rs. 120.40 Mn in Q4 FY25 compared to Rs. 74.52 Mn in Q4 FY24, YoY increase of 61.57% on account of reduction in direct expenses and higher interest income resulting in better profit margins

Standalone Performance Highlights – Year ended 31[st] March, 2025

• Revenue from operations for the financial year was Rs. 3,160.07 Mn in FY25, as against Rs 2,571.26 Mn in FY24, YoY increase of 22.90%. This growth was mainly due to sustained market demand, enhanced execution, and higher capacity utilization, driven by improvement in operational efficiency

• EBITDA (excluding Other Income) was at Rs. 408.82 Mn in FY25 as against Rs. 302.72 Mn FY24, increase of 35.05 % due to due to reduction in direct expenses resulting higher gross profit margin and additionally better absorption of other costs

• EBITDA Margin for the year stood at 12.94%, YoY improvement of 117 bps

• Profit after Tax stood at Rs. 337.53 Mn in FY25 compared to Rs. 233.97 Mn in FY24, YoY increase of 44.26%

Consolidated Performance Highlights – Quarter ended 31[st] March, 2025

• Revenue from operations for the financial year was Rs. 1,024.48 Mn in Q4 FY25, as against Rs. 739.44 Mn in Q4 FY24, YoY increase of 38.55 %. This growth was mainly due to increased and timely execution of high-value orders, supported by strong demand from core sectors such as cement and steel which also enabled successful cross-selling of our service offerings

• EBITDA (excluding Other Income) was at Rs. 147.01 Mn in Q4 FY25 as against Rs. 80.53 Mn Q4 FY24, increase of 82.55 % on account of improved product and customer mix with continued focus on cost efficiency and operational gains and additionally better absorption of other costs

• EBITDA Margin for the quarter stood by 346 bps points to 14.35%

• Profit after Tax stood at Rs. 130.10 Mn in Q4 FY25 compared to Rs. 91.78 Mn in Q4 FY24, YoY increase of 41.75% on account of increased in interst income and reduction in direct expenses

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 fourth quarter ended 31st March 2025 we have registered a Revenue of Rs. 1,024.48 million, EBITDA of Rs. 147.01 million and PAT of Rs. 130.10 million. This performance was underpinned by the successful completion of the WIP to sales of high-value orders, further supported by strong demand from the core sectors—cement, steel and engineering. The favorable market conditions also enabled successful cross-selling of our service offerings, contributing meaningfully to our topline

I am pleased to announce that the Board of Directors has recommended a final dividend of 15% for the financial year 2024-25. This decision is a testament to the strength of our business fundamentals, resilience of our operations, and the healthy cash flows we continue to generate. It reflects not just our commitment to reward our valued shareholders, but also our confidence in the long-term growth trajectory of the Company. We see this dividend as both a token of appreciation for your continued trust and a signal of the robust future we are building together.

As part of our commitment to nurturing a high-performance culture and aligning the interests of our employees with those of our shareholders, we have approved the introduction of an Employee Stock Option Plan (ESOP) through a trust-based structure, encompassing up to 7,00,000 equity shares. This strategic initiative is designed to attract, retain, and motivate top talent across the organization by offering them an opportunity to participate in the Company’s growth journey. The ESOP Trust will administer the scheme in a structured and transparent manner, with grants linked to individual performance and tenure, thereby reinforcing a culture of ownership and long-term value creation. We believe this initiative will cultivate a deeper sense of ownership among our employees, enhance engagement, and support long-term value creation for all stakeholders.

As we reflect on this quarter, we reaffirm our commitment to innovation and excellence. We are working towards increasing our presence across newer industries to widen our customer base. I am glad to inform you that we have recently received a prestigious order from Heavy Vehicle Factory for our Flux Cored Wires. We are on track to develop newer solutions for other sectors like Indian Railways, Nuclear, Mining, Oil and Gas.

Diffusion Engineers Limited

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Our accomplishments in gaining industry recognition, expanding our international client base, and investing in strategic assets have collectively strengthened our competitive edge. We are poised to build on these milestones to drive sustained success in the coming quarters.

I would like to thank each member of the Diffusion family, our Clients, Creditors, Banks, Financial Institutions, and all other Stakeholders. Their faith in us and support extended makes it easier for us to strive and excel.

Thank you for your ongoing support and trust 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 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:

Ms. 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

Diffusion Engineers Limited

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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.