Dixon Technologies opened at ₹16,440 on July 23 and hit a high of ₹16,540 in early trade after reporting strong Q1FY26 results. The stock was quoting at ₹16,112 at 9:15 AM, up 2.11% from the previous close, supported by strong earnings and upbeat views from top brokerages like Nomura and CLSA, even as Morgan Stanley maintained a cautious stance.
In Q1FY26, Dixon reported a net profit of ₹225 crore, up from ₹133.7 crore in the same quarter last year. Revenue surged to ₹12,836 crore, from ₹6,580 crore YoY. EBITDA rose 94% YoY, led primarily by the mobile segment. The results were broadly in line with expectations.
Following the earnings, Nomura retained its Buy rating and set a target price of ₹21,154, implying a 31% upside from the current level. The brokerage noted that execution remains strong across both mobiles and components, and margin tailwinds are expected from the scale-up of multiple joint ventures. EBITDA margins are forecast to improve from 3.9% in FY26 to 4.4–4.7% in FY27–28.
CLSA echoed the optimism with a High Conviction Outperform rating and a target price of ₹19,365. The firm said the Q1 results beat expectations and highlighted Dixon’s reiterated FY26 smartphone shipment guidance of 41–43 million units (up from 28 million in FY25). CLSA expects further growth from the Vivo joint venture, exports, and new verticals, with margin expansion even post-PLI phase-out in FY27.
However, Morgan Stanley remained cautious, retaining its Underweight call and setting a significantly lower target of ₹11,563. It pointed to a broad-based revenue miss across segments and an 11% PAT miss. Despite improved operating expenses and employee cost control, margins were mixed, leading to the conservative view.
Disclaimer: The brokerage views expressed above are solely those of the respective firms. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
