Dixon Tech Q1 Results: Net profit doubles to ₹280 crore; revenue jumps 95% on strong ramp-up in mobile volumes
Dixon Technologies announced its June quarter (Q1FY26) results today, July 22, post market hours, reporting a 100% jump in consolidated net profit to ₹280 crore, compared to ₹140 crore in the same period last year. The sharp rise was driven by stellar performance from its Mobile & Other EMS Division, which reported a 125% year-on-year surge in revenue to ₹11,663 crore.
This strong performance also lifted the company’s overall consolidated revenue by 95% to ₹12,835 crore, up from ₹6,570 crore in the corresponding period last year. The operating profit contribution from the Mobile & Other EMS Division rose to 82%, up from 69% a year ago and its contribution to overall revenue also increased to 91%, compared to 79% in Q1FY25.
Meanwhile, the company registered mild growth of 3% YoY and 4% QoQ in its Home Appliances division, with revenue reaching ₹313 crore.
However, it reported a decline in its Consumer Electronics & Appliances segment (LED TVs & Refrigerators), with revenue falling to ₹672 crore in Q1, down from ₹855 crore in the corresponding quarter last year. The Lighting Products division also saw a 17% YoY drop in revenue, to ₹188 crore.
It reported an EBITDA of ₹484 crore, an 89% YoY surge, with margins slightly falling by 10 basis points to 3.8%.
Global brokerage firms, including Nomura and CLSA, have recently retained their optimistic outlook on the EMS player, following its signing of a binding term sheet to acquire a 51% majority stake in Kunshan Q Tech Microelectronics (India) Pvt. Ltd and its plans to form a joint venture with Chongqing Yuhai Precision Manufacturing Co. Ltd.
Nomura highlighted the company’s entry into the camera module business through its stake in Q Tech India as a key value addition. CLSA noted that the company is taking significant steps to increase value addition in smartphones, particularly through camera modules and precision enclosures.
When combined with its existing JV with HKC, Dixon’s value addition in smartphones could rise from 15–17% to as much as 45–55%. CLSA also expects this to improve margins by 150–200 basis points and open up new external revenue opportunities.
Stock rebounds over 21% in a month
After remaining under pressure, the company’s shares have made a strong comeback, gaining 21.3% since hitting a two-month low of ₹13,280 in late June.
Between February 2023 and December 2024, the stock witnessed a sharp one-way rally, delivering a stellar 559% return and hitting an all-time high of ₹19,148 apiece. It then underwent profit booking but has since recovered. At the current level of ₹16,112, the stock is still 16% below its peak.
Nomura has assigned a new all-time target price of ₹21,409 apiece, stating that Dixon’s expansion into both camera modules and precision components could lead to a 5% upside in earnings per share.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.