Dixon Tech Q2 Results: Net profit surges 81% YoY to ₹746 crore; margins expand to 3.8%

EMS major Dixon Technologies announced its September quarter results (Q2FY26) on October 17, post-market hours, reporting an 81% jump in consolidated net profit to ₹746 crore, up from ₹412 crore in the same period last year.

The sharp rise in net profit was largely driven by other income of ₹496 crore, including ₹465 crore from the sale of the company’s stake in Aditya Infotech Ltd and a ₹28 crore gain from the transfer of its lighting business undertaking.

Adjusted for these one-time gains, the company’s net profit stood at ₹323 crore. On the top line, adjusted revenue from operations came in at ₹14,858 crore, which is a 29% YoY growth. Operating profit improved 34% YoY to ₹564 crore, with margins expanding by 20 basis points to 3.8%.

Segment-wise performance

Segment-wise, the Mobile & Other EMS Division reported another strong growth, with the segment revenue rising 41% YoY to ₹13,361 crore, and its contribution to total revenue moving to 90%.

Meanwhile, the Consumer Electronics & Appliances segment (LED TVs and Refrigerators) saw a 42% QoQ improvement in revenue but a 32% YoY decline, with its revenue contribution dropping further to 6%.

The Home Appliances division also showed a 37% QoQ rise in revenue to ₹429 crore, but on a YoY basis, it fell 3%, with segment contribution decreasing to 3% from 4% in the same period last year.

Dixon Technologies share price trend

The company’s shares came under pressure in recent sessions, dropping a cumulative 4.2% over five sessions to ₹16,700. The decline was triggered after global brokerage firm Phillip Capital assigned a ‘Sell’ rating to the stock with a target price of ₹9,085.

The brokerage highlighted that Dixon faces significant client concentration risk, as domestic volumes from Motorola, its largest client, have fallen sharply.

In FY25, nearly 80% of Dixon’s mobile phone revenue came from Motorola, which fell to 60% by Q2FY26, largely due to lower domestic shipments and rising competition from Apple and other Android brands.

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