Diamond Power Infrastructure secures ₹748 Cr Adani order, expands book to ₹2,800 Cr for 3.6x revenue.

The ₹748 Crore Catalyst That Could Rewire Diamond Power Infrastructure

If you’re hunting for a mid-cap play on India’s renewable energy infrastructure boom, Diamond Power Infrastructure just handed you a trading catalyst worth serious attention. The stock surged over 4% on December 4 after announcing a ₹747.64 crore order from Adani Green Energy—its second major Adani contract in six months.

But here’s what matters for your trading desk: this isn’t just another order win. It’s a potential sentiment shifter for a stock that’s been stuck in a downtrend, trading 22% below its 52-week high. The question isn’t whether the news is good—it’s whether this is enough to overcome technical headwinds and fundamental concerns that have kept DIACABS range-bound between ₹138-155 for the past month.

What Happened: The Adani Green Energy Deal

Diamond Power Infrastructure received a Letter of Intent from Adani Green Energy Limited for supplying high-voltage and medium-voltage cables to renewable energy projects in Khavda and Rajasthan. The ₹747.64 crore contract (excluding GST) includes 2,126 km of 33kV high-voltage cables and 3,539 km of 3.3kV solar medium-voltage cables.

Execution runs from January 2026 to December 2026—a tight 12-month timeline that demonstrates Adani’s confidence in DIACABS’ manufacturing capacity. The order was awarded on a “Kms rate basis with PV formulae,” and the company confirmed no related-party transactions are involved, despite family connections between the promoters.

This follows a ₹1,349 crore LoI from Adani Energy Solutions in July 2025 for AL-59 high-performance conductors, pushing DIACABS’ consolidated order book to approximately ₹2,800 crore. That’s nearly 3.6x the company’s FY25 projected revenue of ₹1,115 crore, according to Vertex AI Search (September 17, 2025).

Stock Performance & Analyst View

DIACABS closed at ₹143.21 on December 4, 2025, down 0.69% on the day but well off early session lows. The stock had gained over 4% in morning trade before profit-taking set in—a classic pattern that suggests traders are still skeptical about follow-through buying.

Recent momentum has been weak. The stock fell 4.60% in December through the 4th and is down 1.61% for November. Daily closes over the last five sessions show a clear downtrend: ₹143.21, ₹144.20, ₹146.65, ₹149.16, ₹150.12. However, the stock remains 76% above its 52-week low of ₹81.50 (February 18, 2025) and 22% below its 52-week high of ₹183.50 (July 17, 2025).

Analyst coverage is thin, which creates both opportunity and risk. Wallet Investor (December 3, 2025) projects a short-term 14-day target of ₹151.14, implying 5.5% upside from current levels. Their one-year forecast targets ₹205.10, suggesting 43% upside potential. Conversely, StockInvest.us (December 4, 2025) issued a negative evaluation, noting the stock has fallen for four consecutive days and dropped 6.07% over the last 10 days.

Major brokers like Motilal Oswal and ICICI Securities have not issued recent ratings on DIACABS, leaving retail traders to navigate based on technical levels and order flow rather than institutional research support.

What This Means for Traders

Stock Momentum Context

The Adani order creates a potential bullish divergence against weakening price action. While the stock has been sliding on low volume (618,157 shares on December 4 vs. weekly average of ~1.5 million), the news could attract momentum traders looking for a breakout above ₹145 resistance. The key test is whether DIACABS can hold above ₹140 on any pullback—failure to do so would negate the positive sentiment.

Entry/Exit Considerations

Conservative traders should wait for a confirmed close above ₹145 with volume exceeding 1 million shares, then look for entries on retests of ₹142-143 support. A stop-loss at ₹138 (just below the recent range low) offers a 3-4% risk for potential 8-10% upside to ₹155 resistance.

Aggressive traders might initiate small positions on any intraday dip to ₹140-142, targeting ₹150-152 for a quick 5-7% gain. The risk-reward improves if you can enter near ₹138, where the 200-day moving average equivalent sits based on recent price action.

Sentiment Shift Potential

The Adani relationship is a double-edged sword. On one hand, it provides revenue visibility and validates DIACABS’ manufacturing capabilities. On the other, Adani concentration risk is real—nearly 82% of orders since April 2023 have come from Adani companies (Vertex AI Search, September 17, 2025). Any adverse news affecting the Adani Group could trigger disproportionate selling pressure on DIACABS.

Key Price Levels

• Resistance: ₹150-152 (recent highs), ₹155 (November peak), ₹160-165 (psychological barrier)
• Support: ₹138-140 (recent range bottom), ₹130-132 (strong demand zone from September), ₹125 (breakdown level)
• Stop-loss triggers: Below ₹138 for swing trades, below ₹130 for positional trades

Next Catalysts

1. Q3 FY26 earnings (expected mid-January): With Q2 showing 75% revenue growth and 593% profit growth, expectations are high. Any disappointment on margins or guidance could derail the rally.
2. Execution updates: Monthly progress reports on the Adani orders will be closely watched. Delays or quality issues would be severely punished.
3. New order wins: Diversification beyond Adani would significantly improve sentiment and justify multiple expansion.

Risk Factors

Customer concentration: Over-dependence on Adani Group for order inflow creates vulnerability to relationship changes or Adani-specific headwinds.

Debt and negative equity: Simply Wall St (December 4, 2025) reports negative shareholder equity of ₹-7.1 billion and total debt of ₹25.1 billion, resulting in a debt-to-equity ratio of -350.7%. While interest coverage is adequate at 4.3x, the balance sheet remains stretched.

Execution risk: The 12-month execution timeline for the ₹748 crore order is aggressive. Any slippage could impact revenue recognition and strain working capital.

Promoter shareholding: At over 84%, promoter holding is high and must reduce to 75% within three years of acquisition (Vertex AI Search, September 17, 2025). This could lead to future equity dilution.

The Bigger Picture: Powering India’s Renewable Ambitions

DIACABS operates in a high-growth market. India’s wire and cable market is valued at USD 21.22 billion (2025) and growing at 9.13% CAGR, while the solar cables segment is expanding at 12.94% CAGR (Mordor Intelligence, June 2025). The government’s 500 GW renewable energy target by 2030 and the Revamped Distribution Sector Scheme (RDSS) with ₹2.77 lakh crore allocation create a multi-year demand tailwind.

However, competition is intense. Polycab commands 18% market share, KEI Industries 9%, and RR Kabel 7% (Mordor Intelligence, June 2025). DIACABS is a smaller player but has carved a niche in high-performance AL-59 conductors and EHV cables up to 550kV. The Adani relationship, while risky, provides scale and references that could help win non-Adani orders.

Closing: Actionable Takeaways

For aggressive traders with high risk tolerance, DIACABS offers a high-beta play on India’s energy transition infrastructure. The ₹748 crore Adani order provides near-term momentum catalyst, but the real test is execution and order diversification. Consider initiating 25-30% of intended position size on dips to ₹140-142, adding on sustained moves above ₹145 with volume confirmation.

Conservative traders should stay on the sidelines until Q3 earnings validate the growth trajectory and the stock clears ₹155 resistance with conviction. Watch debt levels and working capital management closely—any deterioration could trigger sharp corrections despite strong order book.

The bottom line: This is a trader’s stock, not a buy-and-hold investment. Use tight stops, take profits at resistance, and don’t fall in love with the story. The Adani order is good news, but in this market, good news only works if the price confirms it.

Disclaimer: This blog has been written exclusively for educational purposes and does not constitute investment advice or personal recommendations. The author is not SEBI-registered as an investment advisor. Recipients should conduct their own research and consult a qualified, SEBI-registered investment advisor before making any investment decisions. Investments in the securities market are subject to market risks; read all related documents carefully before investing.