Dixon Technologies Gets 'Add' Upgrade From Dolat Capital Post Q1 Results — Check Target Price

Dixon deserves high valuations on the back of its high growth potential, impressive return ratios and leadership position in the Indian EMS space, backward integration capabilities.

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Dolat Capital Report

Dixon Technologies India Ltd.’s Q1 FY26 results exceeded our estimates. Revenue surged 95% YoY due to robust 125% growth in Mobile and electrical mechanical services. Other divisions (home appliance: +3% /lighting: -17% / consumer electronics: -21%) registered disappointing performance in Q1. Ebitda margins remained stable at 3.8%.

Even post the end of PLI scheme in March-26, we believe that new customer and product additions, coupled with a focus on backward integration, should continue to aid financials. Dixon is currently awaiting government approval for several JV’s with Chinese companies.

We build in a strong revenue/PAT CAGR of 42%/68% over FY25-27E. We have also revised our FY26E/27E EPS estimate by -4.9%/+5.9% to Rs 192/298 resp.

Accordingly, we upgrade to ‘Accumulate’ rating from Reduce with a revised target price of Rs 18,311 (valuing at 62x FY27E EPS).

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