Dixon Technologies (India) Ltd.Memory Chip Headwinds Cap Q4, FY27 Set at ₹56,000 Cr

Dixon Technologies delivered FY26 revenue of ₹48,893 Cr — 26% YoY growth — but Q4 was impacted by memory chip inflation, softer consumer demand, and inventory rationalization by brands.

Electronics-sector semiconductor-linked input cost inflation, driven by AI-led demand and supply constraints, drove cautious brand procurement, capping Q4 revenue flat. However, supply-demand dynamics improved toward quarter-end, with management guiding high double-digit QoQ volume growth for Q1 FY27 alongside 12-15% higher ASPs. FY27 revenue guidance is set at ₹56,000 Cr — 15-17% growth, excluding the pending Vivo JV.

The balance sheet remains exceptional: 44.8% ROCE, a negative 8-day working capital cycle, and ₹700+ Cr free cash flow despite ₹1,058 Cr capex. The HKC display module joint venture enters commercial trials in Q3 FY27, targeting ₹5,500-6,000 Cr revenue at mid-teen margins. Dixon also initiated entry into high-margin industrial EMS across aerospace, defense, medical, and automotive verticals. Near-term margin pressure of 50-70 bps from PLI expiry is expected, but higher ASPs and component integration benefits in FY28 provide an offsetting growth runway.