Diamond Power Infrastructure Limited has secured new supply orders totaling Rs 116.49 crore from Polite Powertech Limited. The contracts involve providing 11 kV XLPE power cables for urban underground distribution projects in Bhavnagar and Ahmedabad. While this represents a significant win for the company as it scales its medium and extra-high voltage business, investors should note that a portion of the order value remains contingent on final project approvals.
Diamond Power Infrastructure Secures Rs 116.49 Crore Cable Order
Order Value: Rs 116.49 crore (inclusive of GST).
Execution Timeline: Deliveries expected over the next 12 months.
Reader Takeaway: Strong order inflow signals growth, but watch for realization risks linked to pending utility approvals.
What just happened
Diamond Power Infrastructure Limited has received multiple purchase orders from Polite Powertech Limited, an EPC contractor. The total contract value stands at Rs 116.49 crore, with a base value of Rs 98.72 crore excluding GST. The company will supply approximately 655 km of 11 kV three-core aluminium XLPE-insulated power cables. These cables are destined for urban underground infrastructure development in Bhavnagar and Ahmedabad, supporting state utility projects under PGVCL and UGVCL.
Why this matters
This contract win serves as a testament to the company's operational recovery following its exit from the NCLT resolution framework. It demonstrates renewed market confidence in the firm's capacity to execute medium-voltage infrastructure projects. The focus on urban power distribution aligns with ongoing state initiatives to modernize grid infrastructure in Gujarat.
The backstory
The management, led by Vice President Kavish Shah, has framed this win as a strategic step in scaling the company’s Medium Voltage (MV) and Extra High Voltage (EHV) cable product segments. Having completed its resolution plan, the company is now actively seeking to rebuild its order book and expand its presence within the domestic power transmission and distribution space.
Risks to watch
Investors should be aware of two key variables:
- Conditional Exposure: A substantial portion of the order, specifically Rs 79.83 crore, is contingent upon the EPC contractor receiving a final Letter of Award (LoA) from the end utility, UGVCL. Failure to secure this could impact the total inflow.
- Variable Pricing: The contracts are governed by a variable-price formula. The final revenue realized will fluctuate based on these formulas, meaning the initial headline value may deviate from final payments.