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Dixon Technologies Shares Drop Nearly 8% Following Exceptional Q4 Results

Despite a fourfold profit increase and a recommended dividend, concerns over high valuations and PLI expiry weigh on investor sentiment.

Dixon Technologies shares in focus today on stellar Q4 earnings, final dividend
Dixon Technologies shares slip 8% on Q4 earnings, here's what brokerages say
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Overview

  • Dixon Technologies reported a 322% year-on-year rise in Q4 FY25 net profit to Rs 401 crore, driven by a Rs 250.37 crore one-time gain from the sale of its AIL Dixon JV stake.
  • Revenue surged 121% year-on-year to Rs 10,293 crore, while EBITDA grew 143% to Rs 443 crore, with margins improving to 4.3%.
  • The board proposed a final dividend of Rs 8 per share for FY25, pending shareholder approval at the upcoming Annual General Meeting.
  • Shares of Dixon Technologies fell nearly 8% on May 21, 2025, as brokerages flagged concerns over its valuation at 97 times FY26 price-to-earnings and the upcoming expiry of mobile PLI incentives in FY27.
  • The stock had rallied over 80% in the past year, but analysts now cite challenges in sustaining growth beyond the PLI scheme and increasing competition in the EMS sector.