According to NDTV Profit, Dixon Technologies' revenue growth is getting a significant boost from a 3540% rise in selling prices, driven by higher memory chip costs, even as mobile and IT hardware volumes remain broadly flat year on year. Group CFO Saurabh Gupta told analysts during the company's earnings call that mobile and IT hardware volumes were marginally lower year on year, while selling prices had increased sharply because of higher component costs. As per NDTV Profit, memory chips, which earlier accounted for around 12–13% of a smartphone's bill of materials, now make up a significantly higher share as prices have climbed. The increase in component costs is pushing up the selling prices of products handled by the company, creating a gap between reported revenue growth and underlying production volumes.
According to latest results reported by CNBC TV18, Dixon Technologies delivered a consolidated net profit of ₹411 crore for Q2 FY2027, representing a sharp 45% year-on-year decline from ₹750 crore in the corresponding quarter last year. However, excluding a one-time fair-value gain of ₹57 crore on its stake in Aditya Infotech and a ₹28 crore profit from selling its lighting business, the adjusted net profit rose 11% to ₹360 crore and 32% from the previous quarter, demonstrating resilience in challenging market conditions. The highest estimate for net profit stands at ₹5.16 billion from Mirae Asset Sharekhan Ltd, while the lowest estimate is ₹2.10 billion from Nirmal Bang Equities Pvt. Ltd. The company's earnings were significantly impacted by absence of benefits from mobile production linked incentives and lower demand for electronic goods, particularly mobiles, due to higher memory costs.
As reported by CNBC TV18, revenue surged 47% year-on-year to ₹21,794 crore from ₹14,855 crore, substantially exceeding the CNBC-TV18 poll estimate of ₹19,208 crore. According to NDTV Profit, Dixon's consolidated revenue rose 47% year on year to ₹21,806 crore in Q2 FY27. This strong top-line performance was driven by improved realisations driven by price hikes and robust traction in mobiles, IT hardware, telecom, televisions, and washing machines. The revenue increase was also supported by strong volume growth, which could be up 25% on quarter for mobiles, as well as improvements in volumes of IT hardware, telecom, TV and washing machines. However, shares of Dixon Technologies closed at ₹11,000 on the BSE, down 4.25% following the results announcement, despite the company beating analyst expectations.
According to CNBC TV18 results, EBITDA increased 6.4% to ₹597 crore from ₹561 crore year-on-year, exceeding the CNBC-TV18 poll estimate of ₹579 crore. However, EBITDA margin contracted to 2.7% from 3.8% in the year-ago quarter, falling short of the CNBC-TV18 poll estimate of 2.9%. The mobile and EMS division, now 92% of sales, grew 50% to ₹20,093 crore, but its segmental profit margin fell to 2.5% from 3.5%. Management attributed the margin compression to higher realisation across segments and delay in pass-through of raw material cost inflation in the washing machine and refrigerator segments. As per NDTV Profit, the impact is also visible in margins, with Dixon saying its reported margin percentage was affected by higher memory prices and the expiry of the mobile PLI-1 scheme, particularly in its mobile and IT hardware businesses. Management noted that memory procurement remained comfortable and the company was not facing supply constraints.
The company is focusing on growing its low-profit phone assembly business while increasing contract manufacturing of laptops and tablets as part of its diversification plan. According to Mint, Dixon's management expects to generate up to ₹20,000 crore annually from IT hardware by the next fiscal. Management noted that the sector also holds scope for production-linked incentives, giving good scope for steady margin addition. Syrma SGS is also diversifying, with automotive revenue rising 91%, industrials 86%, and IT and railways 69% in the July-September quarter. Syrma's varied verticals helped it maintain close to 10% profit margins despite cost pressures.
According to CNBC TV18, the board of directors approved the appointment of Prithvi Vachani as an Additional Director in the capacity of Executive Director for a period of five consecutive years with effect from October 30, 2026, subject to shareholder approval. Management remained optimistic about market conditions, with Atul Lal, managing director of Dixon, stating that there's nothing unusual about the cost increases and that overall global demand for electronics stays strong. The company is expected to announce its September quarter results on Friday. Among the 13 brokerage reports available, 10 have a 'buy' recommendation on the stock with an average target price of ₹15,871, implying a 38% upside from the current market price. Two brokerages have a 'hold' rating with an average target price of ₹14,736, while one brokerage advises a 'sell' rating with a target price of ₹12,660.
