DIXON TECHNOLOGIES EXPECTS PLI 2.0 SCHEME WILL IMPROVE THE COMPANY'S MARGINS FROM FY28

India's largest electronics manufacturing company $DIXON expects it's earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins to remain in the 3.0-3.1% range in the current financial year 2026-27. However, margins are likely to improve from 2027-28, which will be supported by benefits from the government's production-linked incentives (PLI) 2.0 scheme and the company's backward integration initiatives. The company also expects it's recently approved Vivo joint venture (JV) to become a major growth driver over the next year. The company had reported sales of Rs 15,548 crore for Q1FY27, up by 21% from the corresponding quarter last year. However EBIDTA fell to 3.0% as compared to 3.8% in the same quarter last year. With the new PLI 2.0 scheme set to take effect from next year, the company's EBIDTA margins are expected to improve accordingly.