Dixon meets revenue goal in Q2, bets on components

Topline grows 33% on year to ₹14,855 cr, unsold goods from Q1 drive profits in Sep quarter

- Shouvik Das

Dixon Technologies Ltd's revenue and profit rose in the September quarter as a growing volume of mobile phones and telecommunications products fuelled growth for India's largest publicly listed electronics manufacturer.

Noida-based company's operating revenue rose 15.7% sequentially and 33% year-on-year to ₹14,855 crore in the second quarter of FY26, according to its filings. Dixon met the guidance of 15% revenue growth that Atul Lall, its vice-chairman and managing director, had given in the June quarter.

Its profitability rose 167% sequentially and 81% over a year earlier to ₹746 crore. However, this was largely due to Dixon selling goods manufactured in the past in the September quarter. The change in the company's inventory of finished goods led to a loss of ₹13 crore in the June quarter, while it sold ₹297 crore of unsold goods during in July-September, leading to a jump in profits.

While Lall did not offer guidance for future quarters during the post-earnings conference call with analysts, he expressed confidence in the company's push to increase margins and navigate a slowdown in orders from Motorola, Dixon's anchor client so far.

The company expects four new JVs to start adding revenue by FY27.

"Dixon's revenue opportunity can be around $1.5 billion (₹13,000 crore) annually."