Dixon Technologies Q2 earnings review: Brokerages offer mixed outlook post strong results show
Dixon Technologies earnings: "We are cutting EPS estimates by 8%-13% and expect 33%/37%/30% CAGR in revenue/EBITDA/adjusted PAT in FY25-28E."
- Oct 20, 2025,
- Updated Oct 20, 2025 9:09 AM IST
Dixon Technologies reported a strong set of earnings in the September 2025 quarter. After the earnings, brokerages have a mixed stance on the outlook of the Dixon Technologies.
Brokerage firm Nuvama Institutional Equities has reduced its target price for the electronic manufacturing services (EMS) player while retaining a Hold rating call. The brokerage cited Dixon's strong balance sheet - reflected in negative working capital of six days and a modest net debt of Rs 200 crore - which underpins its planned Rs 1,100 crore capex for FY26 across IT hardware, components, and appliances.
The brokerage said medium to long-term growth plans stay intact and the company has a Rs 1 lakh crore revenue target in the next 3-4 years with 4-4.5% EBITDA margin.
"We are cutting EPS estimates by 8%-13% and expect 33%/37%/30% CAGR in revenue/EBITDA/adjusted PAT in FY25-28E. Retain 'HOLD' with Dec-26E TP of Rs 16,600 (from Rs 16,800), basis 65x Dec-27 EPS," said Nuvama.
However, global brokerage CLSA has cut the target price to Rs 18,800.
The brokerage said Q1 revenue growth of 16% QoQ largely addressed investor concern around market share losses. It expects smartphone volume to grow 40% plus in FY27CL, post-which it depends on an uptick in exports.
PLI scheme discontinuation may impact margins in early-FY27, ahead of backward integration, Nomura said adding that visibility on growth as domestic market share in smartphones saturates through new categories (IT hardware, telecom and exports) and progress on margin expansion projects are key monitorables.
Nomura has a buy call on the EMS stock. It hs a buy call on the stock with a target price of Rs 21,152.
Nomura says mobile business growth is on track and the company's focus is to drive new segments.
The brokerage expects exports to sustain a healthy earnings momentum. Dixon's initiatives to diversify customer base, target new growth avenues keeps growth visibility high Cut FY26F/27F/28F revenue by 5%/2%/2%. However, the brokerage maintained its EBITDA margin estimate - improve from 3.8% in FY26F to 4.3%/4.8% in FY27/28F.
The EMS provider clocked a 72% rise in net profit for the September 2025 quarter. Net profit climbed to Rs 670 crore in the last quarter against Rs 390 crore during the same quarter last year. Net profit was boosted by a higher other income component of Rs 496 crore.
Revenue for the quarter climbed 28.8% Rs 14,855 crore in Q2 from Rs 11,534 crore in the year ago period.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) climbed 31.4% from last year to Rs 561.2 crore. EBITDA margins for the quarter ROSE 10 basis points to 3.8% from 3.7% a year ago.
Dixon Technologies shares closed 0.83% lower at Rs 16686.25 on Friday against the previous close of Rs 16,825. Market cap of the firm stood at Rs 1 lakh crore. The earnings were announced after market hours today.
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 reported a strong set of earnings in the September 2025 quarter. After the earnings, brokerages have a mixed stance on the outlook of the Dixon Technologies.
Brokerage firm Nuvama Institutional Equities has reduced its target price for the electronic manufacturing services (EMS) player while retaining a Hold rating call. The brokerage cited Dixon's strong balance sheet - reflected in negative working capital of six days and a modest net debt of Rs 200 crore - which underpins its planned Rs 1,100 crore capex for FY26 across IT hardware, components, and appliances.
The brokerage said medium to long-term growth plans stay intact and the company has a Rs 1 lakh crore revenue target in the next 3-4 years with 4-4.5% EBITDA margin.
"We are cutting EPS estimates by 8%-13% and expect 33%/37%/30% CAGR in revenue/EBITDA/adjusted PAT in FY25-28E. Retain 'HOLD' with Dec-26E TP of Rs 16,600 (from Rs 16,800), basis 65x Dec-27 EPS," said Nuvama.
However, global brokerage CLSA has cut the target price to Rs 18,800.
The brokerage said Q1 revenue growth of 16% QoQ largely addressed investor concern around market share losses. It expects smartphone volume to grow 40% plus in FY27CL, post-which it depends on an uptick in exports.
PLI scheme discontinuation may impact margins in early-FY27, ahead of backward integration, Nomura said adding that visibility on growth as domestic market share in smartphones saturates through new categories (IT hardware, telecom and exports) and progress on margin expansion projects are key monitorables.
Nomura has a buy call on the EMS stock. It hs a buy call on the stock with a target price of Rs 21,152.
Nomura says mobile business growth is on track and the company's focus is to drive new segments.
The brokerage expects exports to sustain a healthy earnings momentum. Dixon's initiatives to diversify customer base, target new growth avenues keeps growth visibility high Cut FY26F/27F/28F revenue by 5%/2%/2%. However, the brokerage maintained its EBITDA margin estimate - improve from 3.8% in FY26F to 4.3%/4.8% in FY27/28F.
The EMS provider clocked a 72% rise in net profit for the September 2025 quarter. Net profit climbed to Rs 670 crore in the last quarter against Rs 390 crore during the same quarter last year. Net profit was boosted by a higher other income component of Rs 496 crore.
Revenue for the quarter climbed 28.8% Rs 14,855 crore in Q2 from Rs 11,534 crore in the year ago period.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) climbed 31.4% from last year to Rs 561.2 crore. EBITDA margins for the quarter ROSE 10 basis points to 3.8% from 3.7% a year ago.
Dixon Technologies shares closed 0.83% lower at Rs 16686.25 on Friday against the previous close of Rs 16,825. Market cap of the firm stood at Rs 1 lakh crore. The earnings were announced after market hours today.
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.