Dixon Technologies (DIXON) Q2 2026 earnings summary

Executive summary

• Q2 FY26 adjusted revenues were INR 14,858 crore, up 29% YoY, with adjusted EBITDA at INR 564 crore (+34%) and adjusted PAT at INR 323 crore (+37%), excluding one-time gains.

• H1 FY26 adjusted revenue was INR 27,695 crore (+53% YoY), EBITDA INR 1,048 crore (+55%), and PAT INR 603 crore (+61%).

• Temporary demand postponement due to GST rate reduction impacted Q2 volumes, especially in LED TVs, refrigerators, and washing machines.

• Key acquisitions and JVs completed, including a 51% stake in Kunshan Q Tech Microelectronics (India) and the formation of Lightanium Technologies.

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

Financial highlights

• Mobile business revenue was INR 13,361 crore (+41% YoY), with operating profit of INR 472 crore (+53%).

• Telecom and networking products revenue reached INR 1,635 crore (+148% YoY).

• Laptops, tablets, and IT hardware revenue was INR 331 crore (+481% YoY).

• Consumer electronics (LED TVs, refrigerators) revenue was INR 956 crore; refrigerator revenue was INR 145 crore.

• Home appliances revenue was INR 429 crore with an 11.7% operating margin.

Outlook and guidance

• Mobile phone volumes expected at 42 million units for FY26, with a target of 55–60 million units next year, including new partnerships.

• IT hardware business projected to reach INR 4,000–5,000 crore in the next two years.

• Confident in achieving INR 1 lakh crore sales in the next 3–4 years, with operating margins expected to rise to 4–4.5%.

• Management highlights robust YoY growth across all key financial metrics, with continued focus on operational efficiency and working capital management.

• Margin pressure possible for a couple of quarters in FY27 if PLI expires before integration benefits from display and camera modules fully materialize.