How Did Dixon Technologies Deliver a Strong Q2 FY26 Performance Amid Demand Volatility?
Financial Highlights — Q2 FY26
The following table summarizes Dixon Technologies’ consolidated financial performance for Q2 FY26 compared to the previous year:
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Revenue (₹ Cr) | 14,858 | +29% |
| EBITDA (₹ Cr) | 564 | +34% |
| PAT (₹ Cr) | 323 | +27% |
| Working Capital Cycle | -6 days | Efficient cycle maintained |
| Net Debt (₹ Cr) | 203 | Stable leverage |
| ROCE (%) | 49.1 | High capital efficiency |
| ROE (%) | 34.3 | Strong return metrics |
Market Dynamics and Sector Challenges
Mid-August GST rate reductions temporarily impacted demand in TVs, refrigerators, and washing machines as consumers delayed purchases to benefit from lower prices. Demand, however, normalized after September 22, though full volume recovery is expected only in Q3. The management remains confident that festive sales and new contract wins will drive sequential growth.
Strategic Initiatives and Expansion Plans
Dixon Technologies continues to strengthen its manufacturing ecosystem through diversification, joint ventures, and capacity expansions:
- Joint Venture with HKC: Phase 1 to produce 24 Mn smartphones and 2 Mn notebooks annually.
- Phase 2 Expansion: Plan to scale to 60 Mn smartphones, 2 Mn LED TVs, and 1 Mn automotive displays.
- Acquisition: 51% stake in Q Tech India for camera and fingerprint modules.
- PLI-linked Investments: ₹3,000 Cr planned over the next three years for display modules, camera enclosures, and lithium-ion batteries.
- PLI Income: ₹290 Cr received in H1 FY26.
Segment-Wise Business Performance
The table below provides a snapshot of Dixon’s major segmental performance for Q2 FY26:
| Segment | Revenue (₹ Cr) | YoY Growth / Profit |
|---|---|---|
| Mobile & EMS | 13,361 | +41% revenue; ₹472 Cr profit (+53%) |
| Telecom & Networking | 1,635 | +148% YoY growth |
| IT Hardware (Laptops/Tablets) | 331 | +481% YoY growth |
| Consumer Electronics | 956 | ₹39 Cr operating profit |
| Home Appliances | 429 | ₹50 Cr operating profit (11.7% margin) |
| Lighting | — | Operations started Aug ’25; first US pilot executed |
Future Outlook and Guidance
- Mobile phone unit production target: 55–60 Mn units in FY27.
- IT hardware revenue target: ₹1,200–1,300 Cr for FY26.
- Long-term sales ambition: ₹1,00,000 Cr in 3–4 years.
- Strong pipeline for new OEM contracts and export opportunities.
Investor Takeaway
Related Queries
- What Are Dixon Technologies’ Growth Drivers for FY26?
- How Will GST Rate Cuts Impact Consumer Electronics Demand?
- Is Dixon a Long-Term Investment Pick After Q2 Results?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
