Dixon Technologies (India) Ltd.Modest Growth Amid Headwinds

Dixon Technologies reported consolidated operating revenue of ₹10,678 crore in Q3 FY26, reflecting modest growth of 2.1% year-over-year, while operating EBITDA increased 5.8% to ₹421 crore.

However, PAT declined marginally by 1.4% to ₹214 crore as the company navigated near-term headwinds from memory price inflation and smartphone market softness. The Indian smartphone market declined 7% year-over-year in Q3, impacting volumes which stood at 6.9 million units for the quarter. Despite challenges, Dixon maintains industry-leading return ratios with ROCE at 45.1% and ROE at 32%, alongside negative 7-day working capital cycle.

Management is executing an aggressive backward integration strategy with ₹1,100-1,200 crore capex planned for FY26, focusing on display and camera modules. Dixon received ECMS approvals for camera modules and optical transceivers, marking strategic progress. The company plans to expand smartphone camera module capacity from 40 million to 190-200 million units annually. IT hardware business is expected to grow 2.3-2.7x in FY27 to ₹3,500-4,000 crore. Management expects margin expansion from component manufacturing to materialize in FY27-28.