Diamond Power Infra gains after clearing Rs 2,401 crore resolution plan

Diamond Power Infrastructure rose 2.27% to Rs 360 after the company announced that it had completed its exit from the resolution framework under the Insolvency and Bankruptcy Code (IBC).

The process was administered through the National Company Law Tribunal (NCLT).

The company said it has prepaid the entire Rs 501 crore cash consideration payable to its erstwhile lenders under the NCLT-approved resolution plan, along with redeemable bonds worth Rs 1,900 crore. The cash component was originally payable over five years, with the final instalment due on 30 September 2027. The company said it discharged the cash obligation in September 2026, one year ahead of schedule.

Diamond Power was acquired through the NCLT process by a consortium comprising Rakesh Shah, GSEC and the Monarch Group. With the resolution plan fully implemented, the company said it is now eligible to obtain credit ratings from recognised rating agencies and access bank credit, debt capital markets and institutional investors on standard commercial terms.

The company also said its entire fixed-asset base, including its Vadodara manufacturing facility, plant and machinery, rod mills and captive power assets, is free of resolution-era charges and can be used as security for working-capital and term financing.

Diamond Power said criminal proceedings involving the Central Bureau of Investigation and Enforcement Directorate relating to the period before its acquisition under the IBC have been cleared by the respective courts. The company said it has returned to sustained profitability during FY2023-26 and will now focus on expanding its MV and EHV cable capacity, strengthening backward integration and broadening its customer base.

Diamond Power, marketed under the DICABS brand, manufactures LV, MV, HV and EHV power cables, aerial bunched cables, control cables and overhead conductors. Its products cater to power utilities, transmission and distribution companies, renewable-energy developers, EPC contractors and industrial customers in India and export markets.

The company?s consolidated net profit soared 256.19% to Rs 58.45 crore in the quarter ended June 2026 from Rs 16.41 crore in the corresponding quarter of the previous year. Sales surged 128.57% to Rs 689.88 crore in Q1 FY27 from Rs 301.82 crore in Q1 FY26.

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