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Informist, Wednesday, Oct. 15, 2025

By Simran Rede

MUMBAI – Despite robust volumes in its mobile phone segment, the growth in Dixon Technologies' top line and bottom line is likely to slow from their elevated levels in the September quarter. The year-on-year rise in net profit is expected to be the slowest in six quarters and the revenue is likely to be the weakest in eight quarters.

The consumer durables company's consolidated net profit for the latest quarter is expected to rise nearly 63% on year and over 30% on quarter to INR 2.93 billion, according to the average of estimates from 10 brokerages. Its consolidated net sales for the quarter are expected to rise 28% on year and 15% on quarter to INR 147.66 billion, according to the average of estimates.

Mirae Asset Sharekhan has the highest estimates for net profit and revenue at INR 3.58 billion and INR 155.71 billion, respectively. On the other hand, Emkay Global Financial Services has the lowest estimates for the company's net profit and net sales at INR 2.48 billion and INR 132.14 billion, respectively. 

The company had reported a net profit of INR 2.25 billion in the June quarter, up 68% on year and largely in line with the INR 2.22 billion expected by analysts. Its revenue had risen 95% on year to INR 128.36 billion, beating analysts' estimates of INR 120.56 billion. 

Higher other income and lower finance costs are expected to aid the net profit of the company, which provides contract manufacturing services to industry giants such as Samsung, Xiaomi, Motorola, boAt, Panasonic, TCL Technologies, and OnePlus, during the quarter. The rise in exports and the scale-up of non-mobile segments will also help the bottom line of the electronics maker. 

The revenue of Dixon's mobile segment is expected to rise over 30% on year and 10% on quarter, Nuvama Wealth Management said. The volume of the segment is likely to rise to over 11 million units, primarily led by an increase in domestic sales and export volumes of Motorola phones, Kotak Institutional Equities said. The recent cut in the goods and services tax is likely to result in lower sales in some categories, as customers deferred purchases ahead of the rate reduction that took effect on Sept. 22. 

The company's earnings before interest, tax, depreciation, and amortisation for the quarter are expected to rise over 33% on year to INR 5.60 billion, the average of estimates from eight brokerages showed. Nirmal Bang Equities has the highest estimate for EBITDA at INR 6.04 billion and Motilal Oswal Financial Services has the lowest at INR 5.24 billion.  

Dixon Tech's margins are expected to be largely unchanged from the previous quarter, given that the revenue growth is derived from the lower margin mobile business of the company, JM Financial Institutional Securities said. Motilal Oswal Financial Services expects lower sales in high-margin segments such as washing machines and lighting to compress the overall margins by 10 basis points on year and 20 bps on quarter. Nuvama expects healthy growth and margins in the company's non-mobile segments.

Brokerages expect investors to watch out for the company management's updates on the joint venture the company had announced with Vivo and timelines for starting manufacturing. Updates on the start of display and camera module manufacturing, as well as comments on the extension of the mobile production-linked incentive, will also be monitored.

The company will announce its results for the September quarter on Friday.

Of the 16 brokerage reports on the stock available with Informist, 10 have a 'buy' or equivalent rating on the stock with an average target price of INR 17,490. Wednesday, shares of the company closed nearly 1% higher at INR 16,777 on the National Stock Exchange. The stock has risen over 4% since the announcement of its June quarter earnings on Jul. 22.

The following are the Jul-Sept earnings estimates for Dixon Technologies from 10 brokerages in descending order of the estimate of net profit in INR million:

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Edited by Saji George Titus

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