What Drives Motilal Oswal’s Confidence in Dixon Technology’s Growth Story?
Dixon Technology delivered strong Q2 FY26 performance with healthy revenue traction and solid execution across ARR and TBR segments. Motilal Oswal has maintained its Buy rating, assigning a target price of ₹1,400, reflecting confidence in the company’s structural growth path and rising operating efficiencies.
Revenue stood at ₹760 crore (+30% YoY), matching estimates, while 1H FY26 revenue rose 20% YoY to ₹1,420 crore. ARR income grew 39% YoY to ₹550 crore, beating forecasts, whereas TBR income rose 9% YoY to ₹210 crore. Operating profit increased 25% YoY to ₹360 crore (7% beat), though lower other income kept PAT at ₹320 crore (+28% YoY), in line with expectations.
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Dixon Technology Q2 FY26 Snapshot
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | ₹760 cr | +30% |
| Operating Profit | ₹360 cr | +25% |
| PAT | ₹320 cr | +28% |
| ARR Income | ₹550 cr | +39% |
| TBR Income | ₹210 cr | +9% |
| Target Price | ₹1,400 | Maintain Buy |
The cost-to-income ratio rose to 52.4%, but management expects it to improve to 47–48% by FY27 and ~45% thereafter. Dixon plans to add 7–8 new relationship-manager teams over the next 12–18 months, targeting 280–340 RMs long term to sustain flow momentum. Motilal Oswal forecasts FY25–28 revenue/PAT CAGR of 20% and 22%, respectively.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, notes that Dixon Technology continues to build a strong execution track record backed by scaling manufacturing capabilities and margin discipline. Structural tailwinds from PLI schemes and domestic electronics demand should sustain earnings visibility through FY28.
Discover more growth-oriented stock analyses at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Dixon Technology
- What Supports Motilal Oswal’s Positive View on Dixon Technology?
- How Will ARR and TBR Segments Drive Dixon’s Future Earnings?
- What Are Dixon’s Long-Term Margin Improvement Plans?
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.
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