Dixon Technologies’ consolidated revenues increased by just 2% year-on-year in the March quarter (Q4FY26) to ₹10,511 crore, the same as Q3’s growth rate. This contrasts with Dixon’s earlier massive growth run. In fact, revenue growth for the full year stands at 26% to ₹48,873 crore, primarily led by 95% growth in Q1, which slowed to 29% in Q2.
True, the base is higher now. Plus, the company is seeing weaker consumer demand and rising input costs. Q4FY26 Ebitda margin slipped to 3.9% from 4.3% in Q4FY25. Rising memory chip prices made smartphones pricier, thus hurting demand. Dixon’s Q4FY26 smartphone volumes of around 5.6 million units were far below earlier expectations of 7 million units. So, Dixon’s mobile and EMS revenue grew by only 4% year-on-year to ₹9,485 crore. Mobile segment Ebitda fell by 3.4% to ₹337 crore. Lower volumes hurt profitability despite higher average selling price (ASPs).
Dixon’s shares gained 8% on Wednesday. The management commentary was encouraging. They are now targeting FY27 mobile volumes to be flat, and revenue to reach around ₹56,000 crore, excluding the Vivo partnership. FY26 smartphone volume grew 15% to about 32.6 million.
Component push
Dixon is looking to manufacture components rather than assemble only finished products. It plans to increase camera module capacity from 70-80 million units to almost 190 million units over the next 15-18 months. Revenue from this business could rise from ₹1,700 crore in FY26 to around ₹2,500 crore in FY27.
Dixon’s JV with HKC is expected to start mass production by FY27-end. The management believes it can generate revenue of ₹5,500-6,000 crore, with margins better than in the traditional business.
Besides, telecom and networking revenue is expected to reach ₹7,500–8,000 crore in FY27 from ₹5,000 crore in FY26. IT hardware revenue could cross ₹4,000 crore as Dixon expands laptop manufacturing, SSD assembly, and its partnership with Inventec.
The management said approvals for the Vivo partnership are still pending, and if the JV gets cleared, it could add 20-22 million smartphone units annually.
However, the demand for smartphones remains weak, PLI incentives for mobiles have ended, and margins may stay under pressure for some time. Any delay in Vivo approvals or slower export growth could hurt earnings expectations.
Given this, Dixon’s shares are down 33% over the last year. But there is no respite on valuation. The stock trades at 67 times FY27 earnings per share, according to Motilal Oswal Financial Services’ estimates. That is pricey.