Dixon Technologies (DIXON) Q4 25/26 earnings summary

Executive summary

• FY26 revenue grew 26%-28% YoY to INR 48,893-49,586 crores, with EBITDA up 23%-69% to INR 1,887-2,580 crores and PAT up 20%-33% to INR 845-1,644 crores; Q4 FY26 revenue was INR 10,520 crores.

• Q4 FY26 adjusted revenue grew 2%-3% YoY to INR 10,520 crores, with EBITDA at INR 418 crores and PAT at INR 192 crores.

• Reported results include significant one-time gains from fair value adjustments, business transfers, and lighting business sale.

• Strong cash flow generation, with free cash of INR 700+ crores after INR 1,058 crores CapEx; ROCE at 44.8%, working capital cycle at -8 days.

• Board recommended a final dividend of INR 10 per share for FY26, subject to AGM approval.

Financial highlights

• FY26 adjusted revenue: INR 48,893 crores (+26% YoY); reported revenue: INR 49,586 crores (+28% YoY).

• FY26 adjusted EBITDA: INR 1,887 crores (+23% YoY); reported EBITDA: INR 2,580 crores (+69% YoY).

• FY26 adjusted PAT: INR 845 crores (+20% YoY); reported PAT: INR 1,439-1,644 crores (+31%-33% YoY).

• Q4 FY26 revenue: INR 10,520 crores; EBITDA: INR 418 crores; PAT: INR 192 crores.

• Net PLI income booked: INR 360 crores; receivable balance: INR 1,380 crores; recognition of PLI incentive income of INR 1,11,006 lakh pending formal determination.

Outlook and guidance

• FY27 revenue target (excl. Vivo): INR 56,000 crores, implying 15%-17% growth.

• Mobile volumes expected flat YoY (excl. Vivo); Vivo addition could add 20-22 million units annually.

• Revenue growth in mobiles expected to outpace volume growth due to higher ASPs; 12%-15% price growth anticipated.

• Telecom revenue target: INR 7,500-8,000 crores in FY27; lighting revenue expected to double to INR 1,700 crores; IT hardware revenue projected above INR 4,000 crores.

• Management expects continued growth, supported by new joint ventures, acquisitions, and expansion in electronics manufacturing.