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Dixon Tech to gain from strong volumes, margin

Business Standard

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October 21, 2025

Bright outlook on outsourcing demand, backward integration

- RAM PRASAD SAHU

Dixon Tech to gain from strong volumes, margin

The recent results for the second quarter of financial year 2026 (Q2FY26) of the country’s largest electronic manufacturing services (EMS) player, Dixon Technologies (India) was in line with Street estimates.

While growth for the EMS major was driven by the mobile and EMS segment, the fall in sales of the consumer electronics and home appliances segment partly offset the overall gains.

While some brokerages have cut their earnings estimates due to higher finance costs and minority interest, others are positive on the outlook/margins given outsourcing demand and backward integration. The stock has delivered about 7 per cent returns over the past year and is currently trading at 60 times its FY27 earnings.

Led by a 41 per cent growth in the mobile and EMS segment, the company posted overall sales growth of 29 per cent year-on-year (Yo-Y) and 16 percent sequentially.

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