Dixon Technologies (DIXON) investor relations material

Executive summary

• Q2 FY26 adjusted revenue was INR 14,858 crores, up 29% YoY, with adjusted EBITDA at INR 564 crores (up 34%) and adjusted PAT at INR 323 crores (up 37%), excluding one-time gains; reported Q2 revenue was INR 15,351 crores, EBITDA INR 1,057 crores, and PAT INR 746 crores, including significant one-time gains.

• H1 FY26 adjusted revenue grew 53% YoY to INR 27,695 crores, EBITDA up 55% to INR 1,048 crores, and PAT up 61% to INR 603 crores; reported H1 revenue was INR 28,188 crores, EBITDA INR 1,541 crores, and PAT INR 1,026 crores.

• Temporary demand postponement in TVs, refrigerators, and washing machines due to GST rate reduction impacted Q2, but demand normalized post-September 22.

• Strong working capital management with a negative six-day cycle and net debt at INR 203 crores as of September 30, 2025.

• Return on capital employed at 49.1% and return on equity at 34.3% as of September 30, 2025.

Financial highlights

• Mobile business revenue grew 41% YoY to INR 13,361 crores in Q2, with operating profit up 53% to INR 472 crores; segment ROCE at 61%.

• Telecom and networking products revenue surged 148% YoY to INR 1,635 crores.

• IT hardware segment revenue rose 481% YoY to INR 331 crores.

• Home appliances revenue was INR 429 crores with an operating margin of 11.7% and segment ROCE at 36%.

• Mark-to-market gain from a 6.5% stake in a listed company contributed a one-off increase in non-operating income this quarter.

Outlook and guidance

• Mobile phone volumes expected at 42 million units for FY26, with a target of 55–60 million units next year, driven by new partnerships and JV ramp-ups.

• IT hardware business projected to grow 45% annually over the next two years.

• Confident in achieving INR 1 lakh crore sales in 3–4 years, with operating margins expected to rise by 70–80 bps to 4–4.5% through backward integration and operating leverage.

• Exports to Africa, Latin America, and the US are key growth drivers for mobile and IT hardware.

• Continued expansion through new joint ventures and acquisitions, including a 51% stake in Kunshan Q Tech Microelectronics (India) Pvt Ltd.