- Shares of Dixon Technologies rose about 3.5% following Q4 FY26 results that met expectations
- Q4 revenue grew 2.1% to Rs 10,511 crore while net profit dropped sharply to Rs 256 crore
- Management expects flat smartphone volumes in FY27 with 12-15% value growth
Shares of Dixon Technologies Ltd. are surging in trade on Wednesday, rising up to 3% on the back of in line performance in the fourth quarter for the financial year ending March 2026. The stock is currently trading at Rs 10,479, accounting for gains of around 3.5% compared to Tuesday's closing price of Rs 10,138.
This comes against the backdrop of Dixon Tech's Q4 earnings, which were largely in line but uninspiring. Revenue rose a modest 2.1% year-on-year to Rs 10,511 crore, EBITDA slipped 7.8% to Rs 408 crore, and margins contracted 40 basis points to 3.9%. Net profit fell sharply to Rs 256 crore from Rs 401 crore, though the year-ago figure included a one-time exceptional gain of Rs 250 crore from its Aditya Vision investment.
Management guided for flat smartphone volumes in FY27 at around 32 million units, with value growth of 12-15% driven by rising memory prices rather than volume expansion.
ALSO READ: Dixon Tech Q4 Results: Profit Sinks 36%, Dividend Declared; Check Record Date
Should you buy Dixon Tech?
Market analysts have given technical picture of Dixon Tech, a stock that has fallen significantly in the past 12 months.
Ruchit Jain, Vice President, Equity Technical Research, Wealth Management, Motilal Oswal, pointed to a clear resistant band that needs to be overcome before any recovery can be called.
"The stock has been a relative underperformer in the recent past. The stock has resistance around Rs 11,500-11,700 which needs to surpass for a positive trend. The immediate support is placed around Rs 9,600," he said.
Meanwhile, Chandan Taparia, Head- Technical & Derivatives Research MOFSL, was more direct in his assessment, adding that the ongoing bounce is unlikely to sustain.
"Structure is weak and bounce is being sold. Nifty IT itself is under weak structure. Till it holds below Rs 10,500, it can drift down towards Rs 9,500 and lower levels," he said.
On the fundamental side of things, brokerages have had a mixed view on Dixon Tech. Macquarie, for one, has retained a bullish stance on Dixon Tech, maintaining an 'outperform' rating with a target price of Rs 15,000, citing early signs of a turnaround and a strong start to FY27.
Jefferies has a opposing view, having cut its target price to Rs 10,280 while maintaining a 'hold' call. The brokerage cited decelerating sales growth and weak consumer sentiment as reasons for caution.
ALSO READ: Dixon Tech Had a Good Quarter — But Dalal Street Can't Agree On Whether It Matters
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