DIXON

Q2FY26 Summary & Growth Outlook

Strong mobile-led growth, strategic investments, and margin expansion plans 🔹 Quarterly Financial Highlights - Revenue rose 29% YoY, driven by Mobile & EMS segment. - PAT surged 81% YoY, aided by one-time gains from Aditya Infotech (₹465 crore) and lighting JV (₹28 crore). - Operating margin held steady at 3.8%. 🔹 Mobile & EMS Segment - Contributed ~90% of total revenue; grew 41% YoY. - Key clients include Xiaomi, Itel, Motorola, and Samsung. - Noida campus (1 million sq. ft.) on track for March 2026; new OEM production expected by Q4FY26. - FY26 target: 40–42 million units; FY27: 55–65 million units (including Vivo JV). - Wearables/hearables revenue rose to ₹207 crore in Q2. 🔹 Strategic Acquisition: Q Tech India - Dixon to acquire 51% stake in top-tier camera module maker. - FY25 revenue: ₹1,977 crore; PAT: ₹72 crore; EBITDA margin: 7–7.5%. - Expected volume growth: 40 million to 190–200 million units over 2–3 years. 🔹 Display JV with HKC - Phase 1: 2 million mobile displays/month, 1.8 million notebooks. - Phase 2: 60 million smartphone displays/year + LED TV & auto displays. - Margins projected in high teens; commercial rollout from Q1FY27. 🔹 IT & Hardware Segment - Q2 revenue: ₹330 crore, up 481% YoY. - Mass production for HP, ASUS; Acer shifted to Chennai. - FY26 target: ₹1,200–1,300 crore; 2-year goal: ₹4,000–5,000 crore. 🔹 Consumer Electronics & Appliances - Revenue declined 32% YoY due to GST-related demand deferral. - OEM share rose to 60%; new cooling products launched. - Home Appliances down 3% YoY; new washing machines and robotic vacuums planned by Dec 2025. 🔹 Lighting & Telecom Segments - Lighting JV began in Aug 2025; pilot orders from US and Germany. - Telecom revenue: ₹1,635 crore, up 148% YoY; major US order secured. 🔹 Outlook - Targeting ₹1 lakh crore revenue in 3–4 years with 4–4.5% margins. - Premium valuation at 65x FY27 earnings reflects strong growth potential.