Dixon Technologies (India) Ltd. share price target

Dixon logged a weak Q4, with revenue up only 2% YoY amid sequential improvement in the mobile phone business (up 8.5% QoQ, led by better ASP) and 50% YoY decline in the telecom business.

Q4FY26 performance: Dixon reported modest set of results with revenues at 10,511 cr (+2% YoY, -2% QoQ). Mobile and EMS segment witnessed headwinds due to inflation in memory chip price resulting into subdued revenue of 9485 cr up 4% YoY, -3% QoQ. For FY26, smartphone volumes reported at 32-33 mn. Consumer electronics reported revenue of 697 crore marginally growing 1% YoY impacted by weak consumer demand and input cost inflation while Home appliances...

Revenue grew 2% YoY to Rs 105.2bn; EBITDA declined 8% YoY with margins contracting 40bps to 3.9%

Considering high memory prices, several smartphone players have started increasing prices to pass on higher costs. As expected earlier, this is likely to impact overall volumes of smartphone markets, particularly low and mid-range smartphones.

Sharp rise in DRAM/NAND prices has raised BOM costs by 1015%, posing volume risk in price-sensitive segments

Per media articles (refer to link) , the Union Cabinet has approved changes to the Press Note 3 framework for FDI (we await official confirmation by the GoI).

Resetting expectations: Vivo, PLI tick marks to be key manufacturing services (EMS) company of India offering comprehensive EMS solutions with specialized focus across product verticals including mobile, television, washing machine, refrigerators, laptop, lighting, telecom, wearables and hearables, AC printed circuit boards (PCBs), etc. Q3FY26 performance: Dixon reported weak set of results as smartphone volumes came at mere ~0.7 cr units vs expectations of ~1 crore units. Management attributed this to weak industry demand esp. in low to mid-budget phones, post...

Revenue grew 2% YoY (-28% QoQ). Mobile division revenue grew 5% YoY (-27% QoQ)

Dixon’s 3QFY26 revenue/EBITDA came in line with our estimates, though the quarter’s performance was impacted by weak demand in the smartphone industry due to challenges related to higher memory prices and channel inventory.

Component strategy execution to be key factor ahead manufacturing services (EMS) company of India offering comprehensive EMS solutions with specialized focus across product verticals including mobile, television, washing machine, refrigerators, laptop, lighting, telecom, wearables and hearables, AC printed circuit boards (PCBs), etc. Q2FY26 performance: Dixon reported revenue of 14,855 crore (up by (29% YoY/15% QoQ). Mobile and EMS division continued its healthy growth with revenue of 13,361 crore (up by 41% YoY/15% QoQ). Company is in-line to achieve 40-42...

Growth momentum sustains in Q2 as revenue grew 29% YoY /16% QoQ. Mobile division revenue grew 41% YoY/15% QoQ

Dixon’s strong mobiles-led growth continues, with 42–45m/60–62m volumes targets for FY26/FY27. The Longcheer relationship transitioning into a JV provides visibility on sustained volumes post-PLI, while a joint
design facility under planning marks Dixon’s strategic pivot toward the ODM model.

Growth momentum sustains in Q1 as revenue grew 95% YoY /25% QoQ. Mobile division revenue grew 125% YoY/28% QoQ

Dixon logged a robust Q1, with revenue up 95% YoY (above consensus) led by the Mobile and EMS segment, on strong volume growth across customer brands.

Dixon’s strong Q4/FY25 revenue was driven by robust growth in the mobile category, with volumes reaching 28.3m in FY25; it targets 42m–45m/60m–62m units for FY26/FY27.

Q3 beat with topline up 117% to Rs 105bn; and PAT 3% below our estimate at Rs 1.7bn

Dixon Technologies (Dixon) reported better-than-expected revenue and EBITDA, driven by strong performance of the mobile and EMS segment, while PAT stood lower than our estimates on higher depreciation, interest, and minority interest.

Dixon’s Q3 revenue grew 117% YoY to Rs104.5bn (down 9% QoQ, on seasonality), with margin stable QoQ at 3.7%; growth continued to be led by the Mobile & EMS segment (84% of 9M sales), with segment margin up by ~20bps QoQ. Backed by its strong order book, Dixon expects near double smartphone volume at ~60mn units in FY27E vs ~30mn in FY25E which would thus address ~60-65% of the outsourced opportunity

Revenue growth of 117% was impressive backed by strong performance in the Mobiles & EMS segment (up 190% y-o-y). Management expects to clock a volume of 30 million phones in FY25 and 60 million phones by 2027. Mobile & EMS segments would be significant growth drivers.

We initiate coverage on Dixon Technologies (Dixon) with BUY and DCF-based TP of Rs20,000 (implied Dec-26E EV/EBITDA of ~41x). With management style centered around promoting entrepreneurship and strong execution within the organization, and by closely aligning itself with India’s global manufacturing hub ambition in consumer electronics, Dixon has, over time, successfully gained leadership across verticals and continuously expanded into adjacencies.