- Dixon Technologies posted Q4 revenue of Rs 10,511 crore, up 2.1% year-on-year
- EBITDA dropped 7.8% to Rs 408 crore, with margins contracting 40 basis points
- Net profit fell to Rs 256 crore, impacted by a one-time gain in the prior year
Dixon Technologies Ltd. came out with largely decent fourth quarter earnings on Tuesday, posting in-line numbers. However, the results have done very little to settle a seemingly growing divide on Dalal Street on where the electronics manufacturing giant moves forward.
For the quarter ended March 2026, Dixon's revenue came in at Rs 10,511 crore, a modest 2.1% increase on a year-on-year basis while Ebitda slipped 7.8% to Rs 408 crore. Margins contracted 40 basis points to 3.9%. Most notably, net profit fell sharply to Rs 256 crore from Rs 401 crore, though the year-ago figure was inflated by a one-time exceptional gain of Rs 250 crore from its investment in Aditya Vision.
However, the real story lies in Dixon Tech's outlook. The management has guided for flat smartphone volumes in FY27 at around 32 million unit, with value growth of 12.15% likely to be driven by surging memory prices rather than any volume expansion.
Reacting to the Q4 earnings, Macquarie maintained its 'outperform' rating with a target price of Rs 15,000, noting that there are early signs of a turnaround. The firm also added that Dixon has had a strong start to FY27.
Jefferies, on the other hand, cut its target to Rs 10,280 while maintaining a 'hold' rating. The firm flagged decelerating sales growth and weak consumer sentiment as the reason for caution.
The biggest overhang for Dixon Tech at the moment is the pending PN3 approval for Dixon's Vivo joint venture. According to Jefferies, Dixon Tech's outlook, minus the Vivo deal, looks quite weak.
The management itself had a candid admission to make, noting that the industrial EMS opportunity was missed - a segment rivals capitalised on. Dixon Tech says it is now actively looking into the space while IT hardware and telecom segments, though new, continue to grow, with additional capacity for camera modules and displays planned for FY27.
But until the Vivo JV clarity arrives, Dixon Tech is expected to continue traversing muddy waters, with the stock having already fallen 37% in the last 12 months.
ALSO READ: Dixon Tech Q4: Profit Slips For First Time In 17 Quarters — What's Behind The Trimmed Bottomline?
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.