Shares of Dixon Technologies (India) Limited rose 0.87% to ₹11,775 in early trade on May 27 after the company gave positive forward guidance on margins, market share, and upcoming policy catalysts, offering investors a more optimistic picture than the Q4 FY26 results had suggested.
Management told NDTV Profit that it expects market share in the mobile segment to increase, margins to expand by 50 to 70 basis points, and volumes to pick up as soon as the Mobile PLI 2.0 scheme is announced. The company also said it expects approval for its Vivo joint venture to come through shortly.
The commentary arrives about two weeks after a set of Q4 FY26 results that saw consolidated net profit fall 36% year-on-year to ₹256.41 crore from ₹400.82 crore in Q4 FY25. Revenue from operations grew a modest 2.12% to ₹10,510.51 crore. EBITDA declined 8% to ₹418 crore, with margin contracting 40 basis points to 4% from 4.4% in the year-ago quarter.
| Metric | Q4 FY26 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹10,510.51 cr | ₹10,292.54 cr | +2.1% |
| EBITDA | ₹418 cr | ₹454 cr | -7.9% |
| EBITDA Margin | 4.0% | 4.4% | -40 bps |
| Net Profit | ₹256.41 cr | ₹400.82 cr | -36.0% |
The mobile and EMS segment, which contributes 90% of Dixon’s revenue, grew 4% to ₹9,485 crore. Consumer electronics contributed 7% of revenue at ₹697 crore, while home appliances at 3% grew 9% to ₹329 crore.
The management’s guidance on a 50 to 70 basis point margin improvement would take EBITDA margins toward 4.5 to 4.7%, a meaningful recovery if delivered. The Mobile PLI 2.0 announcement, when it comes, is expected to be the primary volume catalyst as it would unlock fresh production incentives for manufacturers tied to the scheme.
The board has recommended a final dividend of ₹10 per equity share of face value ₹2, subject to shareholder approval at the 33rd AGM.
Dixon Technologies trades at a P/E of 43.63 with a market capitalisation of approximately ₹71,831 crore. The 52-week range stands at ₹9,600 to ₹18,471.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.