Dixon Technologies (India): Q1FY27 - long term positioning remains strong

研报英文原文证据摘录

Dixon Technologies (India): Q1FY27 - long term positioning remains strong

nearly 300bps YoY due to input cost inflation and delayed From To % ch Cons.

pass-through, whereas Consumer Electronics profitability remained broadly stable. 03/26E 122.63 122.63 0 269.35

03/27E 185.67 185.71 0 175.89

Management commentary and growth outlook 03/28E 295.72 295.21 -0 270.53

Management remains positive on the medium-term outlook and has maintained its

Akshay Gattani

FY27 smartphone volume guidance of ~32mn units (ex-Vivo), with the Vivo JV expected

Analyst

to contribute from Q3FY27. The new PLI 2.0 scheme is seen as a key growth catalyst, akshay-kumar.gattani@ubs.com

with a strong focus on exports and localization. Management expects exports to emerge +91-22-6155 6044

as a key growth driver, potentially adding 15-20mn units in the next few years from its

Amit Mahawar

anchor customers, while display and camera module localization to drive margin

expansion. The company also remains optimistic on telecom and IT hardware, targeting amit.mahawar@ubs.com

Rs67-70bn telecom revenue in FY27, aided by 5G, broadband and exports. In IT +91-22-6155 6030

hardware, strong order inflows, the ramp-up of the Inventec JV, SSD manufacturing and

Harshita Surana

planned entry into servers and data-center hardware provide a strong growth runway. Associate Analyst

harshita.surana@ubs.com

Valuations: growth narrative remains strong; maintain buy +91-22-6155 6066

We remain positive on Dixon, driven by Vivo JV approval, mobile manufacturing

incentives, component ecosystem expansion, and ramp-up of the Inventec and

Longcheer JVs. Growth is further supported by telecom and IT hardware, while new

opportunities in servers, SSDs and advanced telecom products add to the runway. We