Dixon Technologies (DIXON) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 consolidated revenue was INR 16,076 crore, up 25% year-over-year; adjusted revenue was INR 15,557 crore, up 21% year-over-year, with EBITDA (excluding fair value gain) at INR 472 crore and PAT at INR 218 crore, reflecting margin pressures from input cost inflation and PLI 1.0 expiry.

• Reported EBITDA rose 105% year-over-year to INR 991 crore, and reported PAT after NCI surged 195% to INR 663 crore, both boosted by a one-time fair value gain of INR 519 crore from Aditya Infotech Ltd.

• Strategic focus on backward integration, new JVs, and capacity expansion positions the company for margin restoration and long-term growth.

• ROCE and ROE stood at 34.1% and 23.4%, with a negative five-day working capital cycle, reflecting strong capital discipline.

• Board approved re-appointment of key directors for five-year terms and granted 4,000 ESOPs to employees.

Financial highlights

• Adjusted revenue for Q1 FY 2027: INR 15,557 crore; reported revenue: INR 16,076 crore.

• Adjusted EBITDA: INR 472 crore; reported EBITDA: INR 991 crore.

• Adjusted PAT: INR 218 crore; reported PAT after NCI: INR 663 crore.

• CapEx for the quarter: INR 335 crore, mainly for strategic inventory and capacity expansion.

• Final dividend of INR 10 per share recommended for FY 2025-26.

Outlook and guidance

• Expecting 20%-25% quarter-on-quarter revenue growth in mobile for Q2, with a strong order book.

• Full-year smartphone volumes expected to be flat year-over-year at 32-33 million units, despite market contraction.

• Margins expected to improve from FY 2028 as backward integration and new component lines ramp up.

• Financial figures for the quarter are not directly comparable to previous periods due to the transfer of the lighting business to a joint venture effective 1 August 2025.