Dixon Technologies Mobile volumes see upside, but margins see downside due to delays in HKC JV execution

Research evidence excerpt

Dixon Technologies Mobile volumes see upside, but margins see downside due to delays in HKC JV execution

J P M O R G A N Asia Pacific Equity Research

13 May 2026

Dixon Technologies Overweight

DIXO.NS, DIXON IN

Mobile volumes see upside, but margins see downside Price (12 May 26):Rs10,138.00

due to delays in HKC JV execution ▼Price Target (Mar-27):Rs12,700.00 Prior (Mar-27):Rs13,000.00

4Q print came broadly in-line with cons/JPM. Dixon gave FY27 mobile volume

guidance of 32mn, flat vs FY26 with potential upside to this from mobile PLI 2.0 IT Services, EMS, Telecom, and

Internet Researchand Vivo JV approval coming through. The confidence comes from order book

from mobile customers as memory supply is not an issue. It expects mobile Bhavik Mehta, CFA AC

revenues to grow 12-15% in FY27 led by pricing. On non-mobile business it is (91-22) 6157-3871

bhavik.mehta@jpmchase.com

guiding for strong growth across the board. HKC JV has seen execution delays J.P. Morgan India Private Limited, J.P. Morgan

meaning Ebitda contribution has slipped to FY28. Overall, Dixon is targeting Tower, Santacruz(E), Mumbai - 400098, SEBI

revenues of Rs560bn in FY27 (15% growth) and in FY28 it expects Ebitda margins Registration: INH000001873, (91-22) 6157-3000.

to expand 40-50bps vs FY27 on the back of ramp up of component forays (Q Tech Ankur Rudra, CFA

(65) 6801-3237

and HKC JV). We raise revenues by 14% led by mobile but cut margins by 80- ankur.rudra@jpmorgan.com

90bps due to HKC JV delay driving 2-7% EPS cuts over FY27-28E. Remain OW. J.P. Morgan Securities Singapore Private Limited

• 4Q print in-line. 4Q print came broadly in-line with cons/JPMe. Revenues

grew 2% YY with mobile & EMS growing 4%, Home appliances 9% YY and Key Changes (FYE Mar)

consumer electronics 1%.