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15h ago

Dixon Technologies Posts Strong Q2, Trims Smartphone Outlook and Details Expansion Push

Brokerages deliver a split view, citing PLI risk, heavy capex, and execution needs.

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Dixon Tech: The management has reaffirmed its medium-term targets of Rs 1 lakh crore in revenue and 4.5 per cent Ebitda margin, driven by new JVs, backward integration, and component localisation.

Overview

  • Revenue rose 29% year on year to Rs 14,855 crore, EBITDA reached Rs 561.2 crore with a 3.8% margin, and reported net profit increased 72% to Rs 670 crore, aided by higher other income; Emkay said adjusted profit fell 31%.
  • Management reaffirmed medium-term goals of Rs 1 lakh crore in revenue and roughly 4–4.5% EBITDA margin.
  • Smartphone volume guidance was nudged down to 40–42 million units for FY26 and 55–65 million for FY27, even as Mobile/EMS grew 42% year on year and Home Appliances and Consumer Electronics declined 3% and 32%.
  • Dixon outlined diversification capex including HKC display ramps (24 million units in Phase 1, 60 million in Phase 2), Q Tech capacity consolidation to 200 million units, a Rs 30 billion plan for lithium-ion batteries and camera modules, and the Tirupati appliances plant start targeted for Q3 FY26.
  • Broker views were mixed: Nuvama kept Hold with a Rs 16,600 target, CLSA cut its target to Rs 18,800, Nomura kept Buy at Rs 21,152, Goldman Sachs maintained Sell at Rs 11,420, and analysts highlighted potential margin pressure if PLI support changes before backward integration kicks in.