Dixon Technologies (DIXON) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue for Q1FY26 surged 95% year-over-year to INR 12,838 crore, with EBITDA up 89% to INR 484 crore and PAT doubling to INR 280 crore.

• Free cash flow improved to INR 57 crore from negative INR 124 crore year-over-year, and net debt position shifted to net cash of INR 214 crore.

• ROCE rose to 49.1% and ROE to 33.9%, reflecting enhanced profitability and capital efficiency.

• Exceptional gain of INR 25,037 lakhs recognized from the sale of joint venture shares.

Financial highlights

• Total consolidated income for the quarter was INR 12,83,734 lakhs, up from INR 6,58,798 lakhs year-over-year.

• Operating profit increased 94% year-over-year to INR 482 crore, with operating margin stable at 3.8%.

• PBT after JV share grew 103% to INR 366 crore, and PAT margin improved to 2.2%.

• Earnings per share (EPS) for the quarter was INR 46.47 (basic), compared to INR 23.35 in the same quarter last year.

• Non-controlling interest rose sharply to INR 55 crore from INR 6 crore year-over-year.

Outlook and guidance

• Order books for Q2FY26 are strong, with at least 15% quarter-on-quarter volume growth expected ahead of the festive season.

• Confident of achieving 50% growth for FY26, supported by capacity expansion and new product categories.

• Margin improvement expected in H2 FY27 as backward integration in components ramps up.

• Final dividend of INR 8 per equity share recommended for FY25, subject to shareholder approval.