Dixon Technologies (DIXON) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue reached ₹10,461 crore, up 117% year-over-year, with PAT at ₹217 crore, up 124% YoY; nine-month revenue was ₹28,577 crore, up 119% YoY, and PAT at ₹769 crore, up 177% YoY.

• EBITDA for Q3 FY25 was ₹398 crore (up 113% YoY), with a margin of 3.8%; nine-month EBITDA was ₹1,074 crore (up 106% YoY).

• Exceptional item: Fair value gain from stake in Aditya Infotech Ltd significantly boosted reported profits.

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

• Significant investments in capacity, backward integration, and new product categories are underway to support long-term growth.

Financial highlights

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

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

• Gross debt-to-equity ratio at 0.15; net debt/equity at 0.06 as of Dec 31, 2024; cash and cash equivalents of ₹222 crore.

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

• CapEx for the first nine months was ₹622 crore, expected to close at ₹800 crore for the year.

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.

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

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