Earnings Outlook
Mobile segment seen lifting Dixon Tech Q1 revenue, PAT
This story was originally published at 22:31 IST on 21 July 2025
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By Shakshi Jain
NEW DELHI - Electronics manufacturing services major Dixon Technologies (India) Ltd. is expected to post robust top line and bottom line growth for the June quarter, led by volume growth in its mobiles business and scale-up of non-mobile segments. The company's margin growth, however, is expected to remain largely flat due to lower margins typical of the expanding mobile and electronics manufacturing services segment of the company, according to analysts tracking Dixon Technologies.
Dixon Technologies is expected to post a consolidated net profit of INR 2.22 billion for the June quarter, up 66% on year, according to the average of estimates from 10 brokerages. Sequentially, this would mean a decline of over 44% due to a high base effect since the company had a substantial one-off gain in the previous quarter.
For the March quarter, Dixon Technologies had reported a more than four-fold on-year rise in its consolidated net profit to INR 4.01 billion, aided by a one-time gain of INR 2.5 billion. Barring the exceptional item, the company's bottom line in the quarter had grown only 58% on year at INR 1.50 billion. If we go by this figure, Dixon Technologies' bottom line for the June quarter is seen rising 48% on quarter. The highest estimate for net profit was INR 2.63 billion by Elara Securities (India) Pvt. Ltd. while the lowest was INR 1.89 billion by Nuvama Wealth Management Ltd.
The company's consolidated top line for the June quarter is expected to rise 83% on year to INR 120.56 billion, as per the estimates. Sequentially, it implies an uptick of 17%. The highest estimate for revenue was INR 124 billion from JM Financial Institutional Securities Pvt. Ltd. and the lowest was INR 114.47 billion by Yes Securities (India) Ltd. In the March quarter, the company's revenue had risen 2.2 times on year to INR 102.93 billion.
Apart from the mobile and electronics manufacturing services, the company's telecom and information technology hardware business will also contribute to June quarter earnings growth, Kotak Institutional Equities said. According to Yes Securities, the company's refrigerator segment will also aid revenue growth for the quarter.
Kotak Equities estimates Dixon Technologies sold nearly 9.5 million smartphones in the June quarter, driven by client Motorola's export volumes and higher domestic sales. Sequentially, Motilal Oswal Financial Services expects demand to have ramped up across segments.
The company is expected to report earnings before interest, taxes, depreciation, and amortisation of INR 4.52 billion for the June quarter, according to the average of estimates from eight brokerages. Dixon Technologies' profitability is expected to decline by 7 basis points for the June quarter as the share of the low-margin mobile and electronic manufacturing services sectors increases, Kotak Equities said. Sequentially, the EBITDA margin is expected to contract 60 basis points, according to Motilal Oswal Financial Services.
Dixon Technologies will report its earnings for the June quarter Tuesday. Investors will keenly watch management commentary on incremental client addition, margin trajectory across segments, and net working capital days. Updates on mobile volumes, joint venture with Signify, and sequential revival of the consumer electronics division will also be key focus areas, Motilal Oswal Financial Services said.
Monday, shares of the company ended at INR 16,281 on the National Stock Exchange, up 2% from the previous close. The stock is down 1.7% from its closing price on May 20, when the company reported its results for the March quarter. It is down almost 15% from its 52-week high of INR 19,148.9, reached on Dec. 17.
Of the 16 research reports on the company available with Informist, 10 have a 'buy' rating on Dixon Technologies, two have a 'hold' rating, and four have a 'sell' recommendation. The average target price of the buy recommendations is INR 17,501 and that of the sell calls in INR 15,115.
Following are the Apr-Jun earnings estimates for Dixon Technologies based on reports from 10 brokerages in the descending order by the estimate of net profit:
Brokerage firm | Net sales | Net profit | EBITDA |
Elara Securities (India) Pvt Ltd | 1,22,051.00 | 2,629.00 | 4,734.00 |
Dolat Capital Market Pvt Ltd | 1,16,828.00 | 2,574.00 | 4,572.00 |
Sharekhan Ltd | 1,21,710.00 | 2,430.00 | |
Kotak Institutional Equities | 1,22,706.00 | 2,241.00 | 4,540.00 |
YES Securities (India) Ltd | 1,14,468.00 | 2,234.00 | 4,350.00 |
Motilal Oswal Financial Services Ltd | 1,19,983.00 | 2,166.00 | 4,480.00 |
Nirmal Bang Equities Pvt Ltd | 1,23,527.00 | 2,159.00 | 4,345.00 |
JM Financial Institutional Securities Pvt Ltd | 1,24,000.00 | 1,979.00 | 4,580.00 |
Anand Rathi Share and Stock Brokers Ltd | 1,21,567.00 | 1,928.00 | |
Nuvama Wealth Management Ltd | 1,18,721.00 | 1,892.00 | 4,558.00 |
Average | 1,20,556.10 | 2,223.20 | 4,519.88 |
End
Edited by Vandana Hingorani
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