Synopsis: Two small-cap power infrastructure companies delivered explosive profit growth in FY26, with one riding India’s transmission buildout and the other scaling rapidly in rooftop solar.
India’s energy transition is creating winners far beyond the headline names. While large conglomerates dominate the conversation, two small-cap companies – one making cables and conductors for India’s power grid, and another providing integrated rooftop solar systems to millions of households – quietly delivered some of the sharpest earnings growth of FY26. With profits more than doubling year-on-year, both are drawing investor attention. But strong numbers alone do not tell the full story – execution risks, working capital pressures, and capacity ramp-up timelines will determine whether this momentum holds.
Diamond Power Infrastructure Limited (DICABS): Massive Growth, But Margins Need Watching
DICABS reported revenue of Rs 1,910 crore in FY26, up 71% year-on-year, while EBITDA surged 243% and PAT grew 355% to Rs 158 crore. On a quarterly basis, Q4 FY26 revenue came in at Rs 696 crore, up 108% YoY and 47% QoQ. EBITDA for the quarter stood at Rs 85 crore – a 506% jump year-on-year – with PAT at Rs 61 crore, up 691% YoY.
The numbers look extraordinary, but context is key. DICABS was operating at only 25-30% capacity utilisation in FY26. The company’s single-location facility in Vadodara has a revenue potential of Rs 14,150 crore at full utilisation across cables and conductors – a long runway ahead.
The product mix is where DICABS differentiates itself. It manufactures EHV cables up to 400kV, AL-59 conductors, HTLS, MVCC, and TS conductors – premium, higher-margin products that most listed peers do not offer. The company has also secured a licensed manufacturing partnership with TS Conductor USA for next-generation AECC-based conductors, and counts POWERGRID, NTPC, Adani Solar, Waaree, and JSW Energy among its customers.
However, the margin trajectory warrants attention. EBITDA margin was 12.1% for FY26 and 12.2% in Q4, while PAT margin stood at 8.3%. Finance costs more than tripled to Rs 39 crore in FY26 from Rs 13 crore in FY25 – a reflection of borrowings taken for capacity expansion. The company is targeting 70-80% utilisation over the next three years. Until then, profitability ratios may stay under pressure relative to the headline revenue growth.
Fujiyama Power Systems: Scaling Fast in Rooftop Solar
Fujiyama, which operates under the UTL Solar and Fujiyama Solar brands, reported FY26 revenue of Rs 2,655 crore, up 72.3% year-on-year. EBITDA came in at Rs 490 crore with margins improving to 18.5% from 16.1% in FY25. PAT nearly doubled to Rs 304 crore from Rs 156 crore, with PAT margins expanding to 11.5%.
The company sold over 1 gigawatt of integrated solar power generating systems (SPGS) in FY26 – primarily off-grid and hybrid systems targeting Tier 2 and Tier 3 markets where power reliability is a necessity, not a choice. Channel partners crossed 8,900 by March 2026.
The Ratlam facility – a 2,000 MW integrated plant for panels, inverters, and lithium-ion batteries – is the next leg of growth, with management guiding 50% capacity utilisation in FY27 and full ramp-up by Q4 FY28. Peak revenue from this facility alone is estimated at Rs 5,000 crore.
That said, working capital days increased to 83 in FY26 from 71 in FY25, driven by higher raw material inventory as new locations were stocked. A fire at the Bawal lead-acid battery plant has temporarily suspended operations there, though third-party arrangements have been activated and management expects no material long-term impact. There are also pending BIS queries on 10-15 of its roughly 500 SKUs, which management expects to resolve without penalties. For FY27, Fujiyama has guided 50% revenue growth, with margins expected to remain in the 11-13% PAT range.
Conclusion
Both companies are riding India’s structural power buildout – one on the transmission and distribution side, the other on distributed solar. Diamond Power Infrastructure is a high-upside, early-stage operating leverage story where execution of capacity utilisation is the central variable. Fujiyama is a more mature, distribution-moated business with visible growth catalysts in Ratlam but emerging risks in working capital and plant-level disruptions. Neither is a buy-and-forget story at this stage – both require close monitoring of execution. But for investors looking at the power infrastructure theme from multiple angles, they are certainly worth tracking.
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