Dixon Technologies (DIXON IN) Hold: New avenues but execution is the key

Research evidence excerpt

Dixon Technologies (DIXON IN) Hold: New avenues but execution is the key

12 May 2026

Dixon Technologies (DIXON IN) Equities Electronic Equipment &

Instruments

Hold: New avenues but execution is the key India

◆ 4Q results were largely in line with consensus estimates, with

MAINTAIN HOLD

mobile phone volumes slightly below our expectations

TARGET PRICE (INR) PREVIOUS TARGET (INR)◆ With management discussing a multitude of new growth levers,

including data centre servers, timely execution is the key 12000.00 11500.00

◆ Cut FY27 EPSe by c4%, mainly from VIVO JV delay; TP SHARE PRICE (INR) UPSIDE/DOWNSIDE

revised to INR12,000 (earlier INR11,500), maintain Hold 10772.00 +11.4%

(as of 11 May 2026)

4Q results review: Dixon’s top line grew by 2% yoy in 4QFY26 to INR105bn. Its reported MARKET DATA

PBT and net profit fell by c36% yoy each, mainly from a 40bp lower EBITDA margin yoy Market cap (INRm) 654,958 Free float 66%

Market cap (USDm) 6,872 BBG DIXON IN

and its high one-off gain last year. Adjusting for one-offs, the company’s adjusted net 3m ADTV (USDm) 86 RIC DIXO.BO

profit increased by 4% yoy. On a full year basis, the company’s top line grew by 26% yoy

FINANCIALS AND RATIOS (INR)and adjusted net profit by 19% yoy. As the growth moderates, we expect company to

Year to 03/2026a 03/2027e 03/2028e 03/2029e

deliver top line CAGR of 24% and EPS CAGR of 35% over FY26-29e. HSBC EPS 138.36 191.70 285.62 338.49

HSBC EPS (prev) 133.59 200.19 288.54 na

Key Takeaways from management call: 1) Management maintains guidance that Change (%) 3.6 -4.2 -1.0 na

Consensus EPS 154.02 192.80 276.26 327.66

mobile phone volumes, excluding exports and VIVO, will remain flat in FY27. They PE (x) 77.9 56.2 37.7 31.8

were bullish on export opportunities on the back of expected PLI 2.0.