Dixon Technologies (DIXON) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue reached INR 10,461 crore, up 117% year-over-year; nine-month revenue was INR 28,577 crore, up 119% year-over-year.

• Q3 FY25 PAT was INR 217 crore, up 124% year-over-year; nine-month PAT was INR 769 crore, up 177% year-over-year.

• EBITDA for Q3 FY25 was INR 398 crore, up 113% year-over-year, with a margin of 3.8%.

• Exceptional gain from fair value adjustment of Aditya Infotech Ltd stake (6.5%) recognized in reported results.

• Diversified revenue streams and operational excellence drove growth despite macroeconomic challenges.

Financial highlights

• Q3 FY25 operating profit was INR 391 crore, up 111% year-over-year; nine-month operating profit was INR 1,065 crore, up 107% year-over-year.

• Q3 FY25 PBT after JV share was INR 286 crore, up 127% year-over-year; nine-month PBT after JV share was INR 995 crore, up 173% year-over-year.

• ROCE for 9M FY25 was 42.6% (up 460 bps YoY); reported ROE was 40.4% (up 1,520 bps YoY); adjusted ROE at 33.3%.

• Gross debt/equity at 0.15x; net debt/equity at 0.06x as of Dec 31, 2024; cash and cash equivalents of INR 222 crore.

• Cash conversion cycle at negative three days, reflecting strong liquidity.

Outlook and guidance

• Mobile, IT hardware, telecom, and component businesses are expected to be key growth drivers in FY26 and FY27.

• Backward integration and new component projects are expected to expand margins by 100-120 bps over the next 24-36 months.

• Display fab project, with a CapEx of $2.7-3 billion, is expected to generate $1.7-2 billion in revenue and double-digit margins.

• Management expects continued momentum, supported by new product launches and capacity expansions.

• Order books across segments remain healthy, with strong export momentum in mobiles and refrigerators.