DIXON TECHNOLOGIES SHARE RALLY 13% DESPITE 45% PROFIT DECLIN

shares advanced 13% on Monday despite a sharp fall in Q2 FY27 net profit. Positive management commentary, robust smartphone manufacturing volumes and anticipated business from the Vivo joint venture strengthened investor sentiment. KEY FINANCIAL PERFORMANCE 🔹 Revenue: Grew 42% YoY to ₹21,806 crore from ₹15,351 crore. 🔹 EBITDA: Fell 37% YoY to ₹666 crore versus ₹1,057 crore. 🔹 EBITDA Margin: Narrowed to 3.1% from 7.1%. 🔹 Net Profit: Declined 45% YoY to ₹411 crore against ₹746 crore. MOBILE & EMS SEGMENT 🔹 Revenue increased 50% YoY to ₹20,093 crore. 🔹 Smartphone manufacturing volume reached approximately 9.7 million units during the quarter. 🔹 Strong customer relationships supported segment growth. VIVO JV: FUTURE GROWTH OPPORTUNITY 🔹 Vivo smartphone production is expected to begin in Q4 FY27. 🔹 The JV could add 20–21 million units annually. 🔹 Total smartphone production is targeted to surpass 50 million units by FY28. 🔹 A newly onboarded domestic customer may contribute an additional 8–10 million units next year. MANAGEMENT OUTLOOK Higher memory chip and raw material costs affected profitability, with material expenses rising to nearly 95% of revenue. However, improved production volumes, economies of scale and easing memory prices could support margin recovery. FII STAKE RISES Foreign institutional investors increased their holding from 17.8% in Q1 FY27 to 18.96% in Q2 FY27, reflecting renewed institutional interest. #DixonTechnologies #DixonTech #Q2FY27 #QuarterlyResults #EMS #ElectronicsManufacturing #VivoJV #FII #StockMarket #NSE #BSE #NiveshResearch Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.