Dixon Technologies share price gains 2% post Q1 results: Should you buy or sell the stock?

Stock Market Today: Dixon Technologies gained more than 2% in the morning trades on Wednesday, post Q1 results that were announced after the market hours on Tuesday.

Dixon technologies Q1 Results

Dixon Technologies reported a 100% increase in consolidated net profit to ₹280 crore in the June quarter (Q1FY26), up from ₹140 crore in the same period last year. The announcement was made today, July 22, after market hours. The company's Mobile & Other EMS Division had a 125% year-on-year increase in revenue to ₹11,663 crore.

Dixon Technologies Q1 beat estimates.

Analysts said that the Q1 results reported by Dixon Technologies came ahead of estimates.

As per Jefferies India Pvt Ltd, Dixon Technologies Q1FY26 was above Jefferies estimates, with net profit doubling year on year. Mobile+EMS sales (around 90% of the mix) grew by 124% YoY.

As per Motilal Oswal Financial Services, Dixon’s 1QFY26 revenue, EBITDA, and net profit came in ahead of their estimates, with the mobile segment registering strong growth . Ismartu integration, improved volumes from existing clients, and higher exports led to a YoY jump in mobile volumes during the quarter.

Dixon Technologies Q1 Results: Analysts Views

The company's growth strategy includes two pillars, as per analysts

1) strengthening relationships with existing clients through joint ventures to increase volumes in the long run, and

2 focuses on forming alliances with participants across components to facilitate backward integration. This plan will increase revenue visibility and margins in the next years.

Dixon's display facility with HKC, camera module with Qtech, and precision components with Chongqing Yuhai Precision Manufacturing will address a bigger amount of smartphone BoM, resulting in improved margins and customer stickiness for Dixon in the long run, as per MOFSL. A joint venture with Longcheer and Vivo will sustainably increase the company's volumes.

MOFSL has maintained its BUY rating on the stock with a revised DCF-based TP of ₹22,100 (earlier ₹20,500)

Jefferies estimates Dixon's Mobile volumes to ramp up from ~30 million in FY25 to ~45 million in FY26 and further to ~65 million by FY27 (in line with management outlook). Factoring in the Q1 beat, Jefferies has raised FY27-28 estimated earnings per share, or EPS, by +3-4%, and now estimates EPS CAGR of more than 44% in FY25-28. Jefferies has upgraded Dixon Technologies stock to HOLD from Underperform with a price target of ₹15,400.

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.