Dixon Technologies reports 49% drop in Q2 profit

The company has reported 74.20% drop in its net profit at Rs 123.44 crore for the quarter ended September 30, 2026 as compared to Rs 478.53 crore for the same quarter in the previous year. The total income of the company has decreased by 11.97% at Rs 1,679.24 crore for Q2FY27 as compared to Rs 1,907.64 crore for the corresponding quarter of the previous year. On consolidated basis, the company has reported 48.71% fall in its net profit at Rs 343.66 crore for the quarter ended September 30, 2026 as compared to Rs 670.00 crore for the same quarter in the previous year. However, total income of the company increased by 42.42% at Rs 21,862.37 crore for Q2FY27 as compared to Rs 15,350.78 crore for the corresponding quarter previous year. Outlook - The contraction in net profit was chiefly caused by a significant reduction in other income which fell to ₹69 crore from Rs. 496 crore in Q2 FY26. The prior year's elevated performance was due to exceptional, one-time fair-value gains recognized on the company's investment in Aditya Infotech. - The company's shift toward leaner margins was driven by two key factors: a massive volume expansion in the lower-margin Mobile & EMS divisions and the phasing out of PLI 1.0 benefits. - Global memory chip prices spiked 35%–40% YoY. Dixon Technologies passed these higher costs to clients—boosting overall revenue—but saw its operating margin compress to 2.7%.

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