Dixon Technologies (DIXON) Q2 2026 earnings summary

Executive summary

• Q2 FY26 adjusted revenues were INR 14,858 crore, up 29% YoY, with adjusted EBITDA at INR 564 crore (up 34%) and adjusted PAT at INR 323 crore (up 37%), excluding one-time gains.

• H1 FY26 adjusted revenue grew 53% YoY to INR 27,695 crore, EBITDA up 55% YoY to INR 1,048 crore, and PAT up 61% YoY to INR 603 crore.

• Temporary demand postponement in LED TVs, refrigerators, and washing machines due to GST rate reduction, with normalization late in the quarter.

• Key acquisitions and JVs completed, including 51% stake in Kunshan Q Tech Microelectronics (India) and formation of Lightanium Technologies.

• Mark-to-market gain from Aditya Input Tech stake and gains from lighting business transfer recognized as one-time non-operating income; adjusted numbers exclude these.

Financial highlights

• Mobile business revenue was INR 13,361 crore in Q2, up 41% YoY, with operating profit of INR 472 crore, up 53%.

• Telecom and networking products revenue grew 148% YoY to INR 1,635 crore.

• Laptops, tablets, and IT hardware revenue rose 481% YoY to INR 331 crore.

• Home appliances revenue was INR 429 crore in Q2 with 11.7% operating margin.

• Free cash flow for H1 at INR 324 crore; cash and equivalents at INR 612 crore as of September 30, 2025.

Outlook and guidance

• Mobile phone volumes expected at 40–42 million units for FY26, with guidance of 55–60 million units for next year, including new JV contributions.

• IT hardware business targeted to reach INR 4,000–5,000 crore in two years.

• Confident in achieving INR 1 lakh crore sales in 3–4 years, with operating margins expected to rise to 4–4.5% through integration and scale.

• Focus on expanding electronics goods segment and integrating recent acquisitions and JVs.

• Exports to Africa, Latin America, and the U.S. expected to be significant growth drivers.