Dixon Technologies Q1 Review: Goldman Sachs Hikes Target Price — Is This A Buy Signal?

Dixon Technologies witnessed a strong ramp-up, but customer stickiness is a key monitorable, brokerages noted, as the multinational electronics manufacturer reports its first-quarter result for the financial year ending March 2026 on Tuesday.

During the April-June period, Dixon Technologies' topline, or revenue from operations, rose 24% to Rs 12,863 crore, compared to Rs 10,292 crore in the previous quarter ended March 31, 2025.

A key highlight for the company was revenue from the Mobile & EMS division climbing twofold to Rs 11,663 crore. The Mobile & EMS division contributes 91% to Dixon Tech's total revenue.

• Revenue up 24% to Rs 12,863 crore versus Rs 10,292 crore (Estimate: Rs 12,155 crore)

• EBITDA at Rs 482 crore versus Bloomberg estimate of Rs 389 crore

• Margin at 3.8% versus Bloomberg estimate of 3.2%

• Net profit down 43% to Rs 225 crore versus Rs 400.8 crore (Estimate: Rs 221 crore)

Here's what brokerages had to say after M&M Financial announced their Q1 results.

Goldman Sachs maintained a 'sell' rating on Dixon Tech in the wake of its first-quarter earnings but hiked the target price to Rs 11,110 from Rs 10,030 earlier.

The brokerage firm observed a strong ramp-up in Dixon Technologies' operations in the June quarter.

Goldman Sachs also sees good value addition in the company, though it offered some scepticism regarding whether or not it will be enough to drive customer stickiness.

Customer stickiness refers to the ability of a business to retain its customers over a long period of time and encourage them to repeatedly purchase or engage with its product.

For Dixon Tech, an EMS specialising in mobiles, smartphones, and home appliances, customer stickiness would mean fostering long-term relationships with its clients, typically an Original Equipment Manufacturer (OEM).

Regarding its re-rating, Goldman Sachs reasoned that Dixon Tech still trades with a high valuation and that there could be moderation of growth going ahead.

Goldman Sachs also sees limited potential for the company to spring a surprise on an already optimistic outlook.

While Goldman Sachs remained cautious on Dixon Tech, Investec has maintained a 'buy' call on the EMS company, with an unchanged target price of Rs 20,000.

Investec observed a strong first-quarter result for the company, which could allay fears from competition.

The brokerage firm further noted that Dixon Tech's June quarter earnings surpassed its estimates by 2-4% and were 6-7% higher than consensus estimates.

With Dixon Tech focusing on components, it is strengthening its competitive positioning and increasing customer stickiness, Investec noted.

Going forward, Investec expects the EMS company to grow its EBITDA and profit at a compounded annual growth rate of 38% and 41%, respectively.

The brokerage firm also likes Dixon Tech's 'opportunistic approach' and focus on increasing value addition without compromising on capital efficiency.