Dixon Technologies shares: Brokerages see up to 62% upside post Q3 earnings; here's why
Dixon Technologies: Net profit rose 68% to Rs 282.7 crore in Q3 against Rs 171.2 crore a year ago. Revenue climbed 2% to Rs 10,671 crore in the last quarter against Rs 10,454 crore a year ago.
- Jan 30, 2026,
- Updated Jan 30, 2026 9:04 AM IST
Dixon Technologies Q3 revenue/EBITDA came in line with estimates with a big beat on profit after tax (PAT). However, weak demand in the smartphone industry due to challenges related to higher memory prices and channel inventory affected the Q3 earnings of the firm, according to brokerage Motilal Oswal.
The challenges related to higher memory prices are likely to continue for another few quarters, which could weigh on mobile volumes of the firm in the upcoming quarters.
Net profit rose 68% to Rs 282.7 crore in Q3 against Rs 171.2 crore a year ago. Revenue climbed 2% to Rs 10,671 crore in the last quarter against Rs 10,454 crore a year ago. EBITDA rose 6% to Rs 414 crore in Q3 against Rs 390 crore in the December 2024 quarter.
Motilal Oswal sees a 62% upside in the stock with a price target of Rs 16,700.
The brokerage says backward integration efforts of the company are progressing in line with schedule and it has also received ECMS approval for camera module and electro transceivers.
"Considering the current weakness in smartphone volumes and expectations of lower margins in FY27, we cut our estimates by 23%/9% for FY27/FY28 and arrive at a revised TP of INR 16,700, based on 2-year forward DCF, implying a target P/E multiple of 55x," added Motilal Oswal.
Dixon Technologies shares closed 0.56% higher at Rs 10,338. Market cap of the firm rose to Rs 62,741 crore. The stock has lost 33% in three months and fallen 38% in six months.
Meanwhile, JP Morgan is overweight on the stock with a target price of Rs 13,700.
Dixon pared its FY26 mobile volume guidance to 34-35 mn (from earlier 40-42mn) and withdrew its FY27 guidance (from 55-65 mn earlier) mainly due to uncertainty from memory price increases impacting end demand as well as delays in Vivo JV approval
Jp Morgan believes withdrawing the guidance is right thing to do in times of uncertainty and provides optionality if & when Vivo JV approval comes through.
Nomura has a buy call with a target price of Rs 14,678 on Dixon Tech.
The brokerage believes that growth recovery will drive re-rating for the stock.
It says 3Q EBITDA was largely in line and new customer ramp-up, backward integration will offset near-term challenges.
It pegs a 51% EPS CAGR over FY26-28F, for which pending government approvals remain a key catalyst.
The brokerage says that stock is trading at 32 times FY28F EPS, which looks attractive given the outlook of the stock.
Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.
Dixon Technologies Q3 revenue/EBITDA came in line with estimates with a big beat on profit after tax (PAT). However, weak demand in the smartphone industry due to challenges related to higher memory prices and channel inventory affected the Q3 earnings of the firm, according to brokerage Motilal Oswal.
The challenges related to higher memory prices are likely to continue for another few quarters, which could weigh on mobile volumes of the firm in the upcoming quarters.
Net profit rose 68% to Rs 282.7 crore in Q3 against Rs 171.2 crore a year ago. Revenue climbed 2% to Rs 10,671 crore in the last quarter against Rs 10,454 crore a year ago. EBITDA rose 6% to Rs 414 crore in Q3 against Rs 390 crore in the December 2024 quarter.
Motilal Oswal sees a 62% upside in the stock with a price target of Rs 16,700.
The brokerage says backward integration efforts of the company are progressing in line with schedule and it has also received ECMS approval for camera module and electro transceivers.
"Considering the current weakness in smartphone volumes and expectations of lower margins in FY27, we cut our estimates by 23%/9% for FY27/FY28 and arrive at a revised TP of INR 16,700, based on 2-year forward DCF, implying a target P/E multiple of 55x," added Motilal Oswal.
Dixon Technologies shares closed 0.56% higher at Rs 10,338. Market cap of the firm rose to Rs 62,741 crore. The stock has lost 33% in three months and fallen 38% in six months.
Meanwhile, JP Morgan is overweight on the stock with a target price of Rs 13,700.
Dixon pared its FY26 mobile volume guidance to 34-35 mn (from earlier 40-42mn) and withdrew its FY27 guidance (from 55-65 mn earlier) mainly due to uncertainty from memory price increases impacting end demand as well as delays in Vivo JV approval
Jp Morgan believes withdrawing the guidance is right thing to do in times of uncertainty and provides optionality if & when Vivo JV approval comes through.
Nomura has a buy call with a target price of Rs 14,678 on Dixon Tech.
The brokerage believes that growth recovery will drive re-rating for the stock.
It says 3Q EBITDA was largely in line and new customer ramp-up, backward integration will offset near-term challenges.
It pegs a 51% EPS CAGR over FY26-28F, for which pending government approvals remain a key catalyst.
The brokerage says that stock is trading at 32 times FY28F EPS, which looks attractive given the outlook of the stock.
Dixon Technologies (India) is the largest home-grown design-focused and solutions company engaged in contract manufacturing products in the consumer durables, lighting and mobile phones markets in India.