Integrated Filing — IndAS



General information about company

Scrip Code 544264
NSE Symbol DIFFNKG
MSEI Symbol NOTLISTED
ISIN INE184O01015
Name of company DIFFUSION ENGINEERS LIMITED
Type of company Main Board
Class of security Equity
Date of start of financial year 01-04-2025
Date of end of financial year 31-03-2026
Date of board meeting when results were approved 16-05-2026
Date on which prior intimation of the meeting for considering financial results was informed to the exchange 12-05-2026
Description of presentation currency INR
Level of rounding used in financial results Lakhs
Reporting Type Quarterly
Reporting Quarter Fourth quarter
Nature of report standalone or consolidated Consolidated
Whether results are audited or unaudited for the quarter ended Audited
Whether results are audited or unaudited for the Year to date for current period ended/year ended Audited
Segment Reporting Single segment
Description of single segment Welding Fabrication Technology and Engineering
Start date and time of board meeting 16-05-2026   15:30:00
End date and time of board meeting 16-05-2026   18:35:00
Whether cash flow statement is applicable on company Yes
Type of cash flow statement Cash Flow Indirect
Declaration of unmodified opinion or statement on impact of audit qualification Declaration of unmodified opinion



Financial Results Ind-AS

Amount in (Lakhs)

Particulars 3 months/ 6 months ended (dd-mm-yyyy) Year to date figures for current period ended (dd-mm-yyyy)
A Date of start of reporting period 01-01-2026 01-04-2025
B Date of end of reporting period 31-03-2026 31-03-2026
C Whether results are audited or unaudited Audited Audited
D Nature of report standalone or consolidated Consolidated Consolidated
1 Income
Revenue from operations 14,157.40 40,662.80
Other income 291.30 1,499.20
Total income 14,448.70 42,162.00
2 Expenses
(a) Cost of materials consumed 7,024.10 18,050.50
(b) Purchases of stock-in-trade 2,615.60 5,326.90
(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade (948.00) (802.30)
(d) Employee benefit expense 1,249.20 4,838.80
(e) Finance costs 65.40 214.70
(f) Depreciation, depletion and amortisation expense 185.40 684.50
(f) Other Expenses
1 Manufacturing expenses 1,392.50 4,785.80
2 Other expenses 755.10 2,748.80
Total other expenses 2,147.60 7,534.60
Total expenses 12,339.30 35,847.70
3 Total profit before exceptional items and tax 2,109.40 6,314.30
4 Exceptional items 0.00 (70.00)
5 Total profit before tax 2,109.40 6,244.30
6 Tax expense
7 Current tax 560.50 1,444.90
8 Deferred tax (43.90) 17.60
9 Total tax expenses 516.60 1,462.50
10 Net movement in regulatory deferral account balances related to profit or loss and the related deferred tax movement 0.00 0.00
11 Net Profit Loss for the period from continuing operations 1,592.80 4,781.80
12 Profit (loss) from discontinued operations before tax 0.00 0.00
13 Tax expense of discontinued operations 0.00 0.00
14 Net profit (loss) from discontinued operation after tax 0.00 0.00
15 Share of profit (loss) of associates and joint ventures accounted for using equity method 4.20 259.20
16 Total profit (loss) for period 1,597.00 5,041.00
17 Other comprehensive income net of taxes 71.40 77.90
18 Total Comprehensive Income for the period 1,668.40 5,118.90
19 Total profit or loss, attributable to
Profit or loss, attributable to owners of parent 0.00 0.00
Total profit or loss, attributable to non-controlling interests 0.00 0.00
20 Total Comprehensive income for the period attributable to
Comprehensive income for the period attributable to owners of parent 0.00 0.00
Total comprehensive income for the period attributable to owners of parent non-controlling interests 0.00 0.00
21 Details of equity share capital
Paid-up equity share capital 3,742.60 3,742.60
Face value of equity share capital 10 10
27 Details of debt securities
22 Reserves excluding revaluation reserve 0.00
23 Earnings per share
i Earnings per equity share for continuing operations
Basic earnings (loss) per share from continuing operations 4.29 13.5
Diluted earnings (loss) per share from continuing operations 4.29 13.5
ii Earnings per equity share for discontinued operations
Basic earnings (loss) per share from discontinued operations 0 0
Diluted earnings (loss) per share from discontinued operations 0 0
ii Earnings per equity share
Basic earnings (loss) per share from continuing and discontinued operations 4.29 13.5
Diluted earnings (loss) per share from continuing and discontinued operations 4.29 13.5
24 Debt equity ratio 0.0700 0.0700
25 Debt service coverage ratio 43.3800 43.3800
26 Interest service coverage ratio 0 0
27 Disclosure of notes on financial results Textual Information(1)



Disclosure of notes on financial results

Textual Information(1) 1. These audited consolidated financial results have been prepared in accordance with Indian Accounting Standards (IND-AS) prescribed under Section 133 of the Companies Act.2013 and other accounting principles generally accepted in India and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 2. The above audited consolidated financial results for the quarter and period ended 31st March, 2026 in respect of Diffusion Engineers Limited have been reviewed by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on 16th May, 2026. The Statutory auditors have expressed unmodified opinion on the audited financial results for the quarter and year ended 31st March, 2026. 3. The audited consolidated Financial Results for the quarter ended 31st March, 2026 is the balancing figures between audited consolidated figures in respect of the year ended 31st March, 2026 and unaudited consolidated figures for nine-months ended 31st December, 2025. The figures for the year ended 31st March, 2025 are extracted from the audited Financials Statement of that period. 4. As a result of the Management review mechanism, the Company has one segment “Welding Fabrication Technology and Engineering” which includes Manufacturing, Trading and Job Work. 5. During the quarter ended 30th June, 2025 the Company has received dividend of USD 5,90,000 from its wholly owned subsidiary - Diffusion Engineers Singapore Pte. Ltd., which has been eliminated while consolidating the above financial result as per IND- AS 110. 6. “Diffusion Wear Solutions Middle East for Welding Wire Rods Electrodes and Similar Products Manufacturing LLC – S.P.C”, a wholly owned subsidiary was incorporated in the United Arab Emirates (UAE) in the financial year 2025-2026. 7. Exceptional Item On 21 November 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws (collectively referred to as the New Labour Codes). The Ministry of Labour & Employment published draft Central Rules and FAQs to clarify certain aspects and enable assessment of the financial impact due to changes in regulations. Amongst other things, the New Labour Codes prescribes a uniform definition of wages based on which certain employee benefits such as gratuity, leave encashment, contributions to provident fund and statutory bonus are required to be computed. The Group has assessed and disclosed the incremental impact of these changes on the basis of the best information available, consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and the non-recurring nature of the impact of the New Labour Codes, the Group has presented the one-time impact of the New Labour Codes, primarily pertaining to provisions for long-term employee benefits such as gratuity and compensated absences, as an exceptional item in the consolidated financial results for the year ended 31st March, 2026. The Group continues to monitor the developments pertaining to the New Labour Codes and will evaluate the impact, if any, on the measurement of liabilities pertaining to employee benefits. 8. The shareholders of the Company, by way of Postal Ballot through remote e-voting concluded on June 29, 2025, approved the creation, offer, issue, grant and allotment of up to 7,00,000 (Seven Lakh) Employee Stock Options (“Options”) to eligible employees of the Company and its subsidiaries under the Diffusion Engineers Limited – Employee Stock Option Scheme 2025, and further approved the secondary acquisition of equity shares through an employee welfare trust, namely “Diffusion ESOP Trust” (“Trust”), including the grant of a loan to the irrevocable Trust to enable it to acquire equity shares of the Company by way of secondary acquisition for implementation of the said Scheme. Pursuant to the above approvals, the Nomination and Remuneration Committee (“NRC”), through a resolution passed by circulation on December 25, 2025, approved the grant of 3,00,000 (Three Lakh) Employee Stock Options to eligible employees under the Scheme at an exercise price of Rs 325/- per Option. Diffusion ESOP Trust holds 3,00,000 equity shares of face value Rs10 each under the Company’s ESOP scheme and the grant letters dated 27th December 2025 were given to eligible employees of which 1,00,000 options were accepted by eligible employees, at an exercise price of Rs 325 per equity share. The options granted under the scheme vest in four tranches of 25% each, subject to satisfaction of applicable vesting conditions. The fair value of stock options (at grant date) is recognised as an expense in the Statement of Profit and Loss within employee benefits as employee compensation cost over the vesting period, with a corresponding increase in ESOP Reserve (a component of equity). The Company’s equity shares held by a trust, which is consolidated as a part of the Company, are classified as Treasury shares. Treasury shares are carried at acquisition cost and presented as a deduction from total equity as “Treasury share reserve” 9. The figures of previous periods / year are reclassified, regrouped and rearranged wherever necessary so as to make them comparable with current period's figures.



Remarks

Debt equity ratio
Debt service coverage ratio
Interest service coverage ratio


Statement of Asset and Liabilities

Amount in (Lakhs)

Particulars Year ended (dd-mm-yyyy)
Date of start of reporting period 01-04-2025
Date of end of reporting period 31-03-2026
Whether results are audited or unaudited Audited
Nature of report standalone or consolidated Consolidated
Assets
1 Non-current assets
Property, plant and equipment 10,973.50
Capital work-in-progress 2,297.50
Investment property 0.00
Goodwill 0.00
Other intangible assets 60.40
Intangible assets under development 0.00
Biological assets other than bearer plants 0.00
Investments accounted for using equity method 0.00
Non-current financial assets
Non-current investments 4,298.60
Trade receivables, non-current 0.00
Loans, non-current 0.00
Other non-current financial assets
1 Other financial assets 1,044.10
Total of other non-current financial assets 1,044.10
Total non-current financial assets 5,342.70
Deferred tax assets (net) 0.00
Other non-current assets
Total of other non-current assets
Total non-current assets 18,674.10
2 Current assets
Inventories 7,367.40
Current financial asset
Current investments 0.00
Trade receivables, current 12,817.90
Cash and cash equivalents 9,756.00
Bank balance other than cash and cash equivalents 0.30
Loans, current 1,089.60
Other current financial assets
Total of other current financial assets 141.00
Total current financial assets 23,804.80
Current tax assets (net)
Other current assets
1 Other current assets 1,196.80
Total of other current assets 1,196.80
Total current assets 32,369.00
3 Non-current assets classified as held for sale
4 Regulatory deferral account debit balances and related deferred tax Assets
Total assets 51,043.10
Equity and liabilities
1 Equity
Equity attributable to owners of parent
Equity share capital 3,742.60
Other equity 36,762.60
Total equity attributable to owners of parent 40,505.20
Non controlling interest 53.40
Total equity 40,558.60
2 Liabilities
Non-current liabilities
Non-current financial liabilities
Borrowings, non-current 0.00
Trade payables, non-current
(A) Total outstanding dues of micro enterprises and small enterprises
(B) Total outstanding dues of creditors other than micro enterprises and small enterprises
Total Trade payable
Other non-current financial liabilities
1 Other financial liabilities 51.20
Total of other non-current financial liabilities 51.20
Total non-current financial liabilities 51.20
Provisions, non-current 0.00
Deferred tax liabilities (net) 567.90
Deferred government grants, Non-current
Other non-current liabilities
Total of other non-current liabilities
Total non-current liabilities 619.10
Current liabilities
Current financial liabilities
Borrowings, current 2,862.40
Trade payables, current
(A) Total outstanding dues of micro enterprises and small enterprises 683.70
(B) Total outstanding dues of creditors other than micro enterprises and small enterprises 3,974.40
Total Trade payable 4,658.10
Other current financial liabilities
1 Other financial liabilities 201.20
Total of other current financial liabilities 201.20
Total current financial liabilities 7,721.70
Other current liabilities 1,884.10
1 Other current liabilities 1,884.10
Total of other current liabilities 1,884.10
Provisions, current 259.60
Current tax liabilities (Net)
Deferred government grants, Current
Total current liabilities 9,865.40
3 Liabilities directly associated with assets in disposal group classified as held for sale
4 Regulatory deferral account credit balances and related deferred tax liability
Total liabilities 10,484.50
Total equity and liabilites 51,043.10
Disclosure of notes on assets and liabilities



Format for Reporting Segment wise Revenue, Results and Capital Employed along with the company results

Amount in (Lakhs)

Particulars 3 months/ 6 month ended (dd-mm-yyyy) Year to date figures for current period ended (dd-mm-yyyy)
Date of start of reporting period 01-01-2026 01-04-2025
Date of end of reporting period 31-03-2026 31-03-2026
Whether results are audited or unaudited Audited Audited
Nature of report standalone or consolidated Consolidated Consolidated
1 Segment Revenue (Income)
(net sale/income from each segment should be disclosed)
Total Segment Revenue
Less: Inter segment revenue
Revenue from operations
2 Segment Result
Profit (+) / Loss (-) before tax and interest from each segment
Total Profit before tax
i. Finance cost
ii. Other Unallocable Expenditure net off Unallocable income
Profit before tax
3 (Segment Asset - Segment Liabilities)
Segment Asset
Total Segment Asset
Un-allocable Assets null null
Net Segment Asset null null
4 Segment Liabilities
Segment Liabilities
Total Segment Liabilities
Un-allocable Liabilities null null
Net Segment Liabilities null null
Disclosure of notes on segments



Other Comprehensive Income

Amount in (Lakhs)

Particulars 3 months/ 6 months ended (dd-mm-yyyy) Year to date figures for current period ended (dd-mm-yyyy)
A Date of start of reporting period 01-01-2026 01-04-2025
B Date of end of reporting period 31-03-2026 31-03-2026
C Whether results are audited or unaudited Audited Audited
D Nature of report standalone or consolidated Consolidated Consolidated
Other comprehensive income [Abstract]
1 Amount of items that will not be reclassified to profit and loss
1 Remeasurements of the defined benefit plans (18.40) (36.10)
2 Income tax effect on above 4.60 9.10
Total Amount of items that will not be reclassified to profit and loss (13.80) (27.00)
2 Income tax relating to items that will not be reclassified to profit or loss 0.00 0.00
3 Amount of items that will be reclassified to profit and loss
Total Amount of items that will be reclassified to profit and loss
4 Income tax relating to items that will be reclassified to profit or loss (85.20) (104.90)
5 Total Other comprehensive income 71.40 77.90



Cash flow statement, indirect

Amount in (Lakhs)

Particulars Year ended (dd-mm-yyyy)
A Date of start of reporting period 01-04-2025
B Date of end of reporting period 31-03-2026
C Whether results are audited or unaudited Audited
D Nature of report standalone or consolidated Consolidated
Statement of cash flows
Cash flows from used in operating activities
Profit before tax 6,244.30
Adjustments for reconcile profit (loss)
Adjustments for finance costs 0.00
Adjustments for decrease (increase) in inventories (540.10)
Adjustments for decrease (increase) in trade receivables, current (4,301.10)
Adjustments for decrease (increase) in trade receivables, non-current 0.00
Adjustments for decrease (increase) in other current assets (515.40)
Adjustments for decrease (increase) in other non-current assets 0.00
Adjustments for other financial assets, non-current 0.00
Adjustments for other financial assets, current 0.00
Adjustments for other bank balances 0.00
Adjustments for increase (decrease) in trade payables, current 1,798.30
Adjustments for increase (decrease) in trade payables, non-current 0.00
Adjustments for increase (decrease) in other current liabilities 509.70
Adjustments for increase (decrease) in other non-current liabilities 0.00
Adjustments for depreciation and amortisation expense 684.50
Adjustments for impairment loss reversal of impairment loss recognised in profit or loss 0.00
Adjustments for provisions, current 44.60
Adjustments for provisions, non-current 0.00
Adjustments for other financial liabilities, current 0.00
Adjustments for other financial liabilities, non-current (9.00)
Adjustments for unrealised foreign exchange losses gains 105.00
Adjustments for dividend income 0.00
Adjustments for interest income 758.40
Adjustments for share-based payments 0.00
Adjustments for fair value losses (gains) 127.50
Adjustments for undistributed profits of associates 0.00
Other adjustments for which cash effects are investing or financing cash flow 0.00
Other adjustments to reconcile profit (loss) 119.40
Other adjustments for non-cash items 0.00
Share of profit and loss from partnership firm or association of persons or limited liability partnerships 0.00
Total adjustments for reconcile profit (loss) (2,735.00)
Net cash flows from (used in) operations 3,509.30
Dividends received 0.00
Interest paid (214.60)
Interest received 0.00
Income taxes paid (refund) 1,444.90
Other inflows (outflows) of cash 0.00
Net cash flows from (used in) operating activities 2,279.00
Cash flows from used in investing activities
Cash flows from losing control of subsidiaries or other businesses 0.00
Cash flows used in obtaining control of subsidiaries or other businesses 0.00
Other cash receipts from sales of equity or debt instruments of other entities 0.00
Other cash payments to acquire equity or debt instruments of other entities 0.00
Other cash receipts from sales of interests in joint ventures 259.30
Other cash payments to acquire interests in joint ventures 0.00
Cash receipts from share of profits of partnership firm or association of persons or limited liability partnerships 0.00
Cash payment for investment in partnership firm or association of persons or limited liability partnerships 0.00
Proceeds from sales of property, plant and equipment 0.00
Purchase of property, plant and equipment 4,086.50
Proceeds from sales of investment property 0.00
Purchase of investment property 966.00
Proceeds from sales of intangible assets 0.00
Purchase of intangible assets 12.10
Proceeds from sales of intangible assets under development 0.00
Purchase of intangible assets under development 0.00
Proceeds from sales of goodwill 0.00
Purchase of goodwill 0.00
Proceeds from biological assets other than bearer plants 0.00
Purchase of biological assets other than bearer plants 0.00
Proceeds from government grants 0.00
Proceeds from sales of other long-term assets 0.00
Purchase of other long-term assets 0.00
Cash advances and loans made to other parties 0.00
Cash receipts from repayment of advances and loans made to other parties 0.00
Cash payments for future contracts, forward contracts, option contracts and swap contracts 0.00
Cash receipts from future contracts, forward contracts, option contracts and swap contracts 0.00
Dividends received 0.00
Interest received 758.40
Income taxes paid (refund) 0.00
Other inflows (outflows) of cash 0.00
Net cash flows from (used in) investing activities (4,046.90)
Cash flows from used in financing activities
Proceeds from changes in ownership interests in subsidiaries 0.00
Payments from changes in ownership interests in subsidiaries 0.00
Proceeds from issuing shares 0.00
Proceeds from issuing other equity instruments 0.00
Payments to acquire or redeem entity's shares 896.60
Payments of other equity instruments 0.00
Proceeds from exercise of stock options 0.00
Proceeds from issuing debentures notes bonds etc 0.00
Proceeds from borrowings 541.00
Repayments of borrowings 0.00
Payments of lease liabilities 0.00
Dividends paid 561.10
Interest paid 214.70
Income taxes paid (refund) 0.00
Other inflows (outflows) of cash (50.10)
Net cash flows from (used in) financing activities (1,181.50)
Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes (2,949.40)
Effect of exchange rate changes on cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents 0.00
Net increase (decrease) in cash and cash equivalents (2,949.40)
Cash and cash equivalents cash flow statement at beginning of period 12,705.40
Cash and cash equivalents cash flow statement at end of period 9,756.00





Details of Impact of Audit Qualification

Amount in (Lakhs)

Whether results are audited or unaudited Audited
Declaration of unmodified opinion or statement on impact of audit qualification Declaration of unmodified opinion
Auditor's opinion
Declaration pursuant to Regulation 33 (3) (d) of SEBI (LODR) Regulation, 2015: The company declares that its Statutory Auditor/s have issued an Audit Report with unmodified opinion for the period on Standalone results Yes
Sr No. Audit firm's name Whether the firm holds a valid peer review certificate issued by Peer Review Board of ICAI Certificate valid upto
1 M/S PGS and associates Yes 31-08-2027