How did Q2 vs Q3 FY26 business segments perform?

Q2 FY26 was led by strong mobile growth of 41%, with operating profit of ₹472 crore (+53%). In Q3, mobile revenue remained steady while the home appliances segment showed stronger margins of 11.5–11.7%. For the nine-month period, profit after tax reached ₹1,346 crore.

Dixon Technologies Down 37% in 4 Months: Key Factors, Hold/Sell/Buy? Top Broker Views.

Q: What was Dixon Technologies' consolidated revenue in Q2 FY26 (Jul–Sep 2025)?

Dixon Technologies reported consolidated revenue between ₹14,855 crore and ₹15,351 crore in Q2 FY26, reflecting 28.8–33% year-on-year growth from approximately ₹11,528–₹11,534 crore. Growth was primarily driven by the mobile segment (₹13,361 crore, up 41%) and a sharp telecom surge of 148%.

Q: How did net profit and margins perform in Q2 FY26?

Consolidated net profit rose 72–81% year-on-year to ₹670–₹746 crore, with EPS at ₹110.72. EBITDA increased 152% to ₹1,057 crore, delivering a 7.1% margin. Profit before tax (PBT) grew 75% to ₹924 crore.

Q: What were the key revenue figures for Q3 FY26 (Oct–Dec 2025)?

In Q3 FY26, consolidated operating revenue ranged between ₹10,364 crore and ₹10,678 crore, reflecting approximately 2% year-on-year growth. The mobile/EMS segment contributed around ₹9,750 crore, consumer electronics ₹567 crore, and home appliances ₹355 crore with margins near 11.5%.

Q: What was the net profit growth in Q3 FY26?

Profit after tax (PAT) increased 49–69% year-on-year to ₹285–₹321 crore, with basic EPS of ₹36.12. EBITDA rose 5.8% to ₹421 crore. Return on Equity (ROE) stood at 32% and Return on Capital Employed (ROCE) at 45.1%.

Dixon Technologies shares have plummeted nearly 37% over the past four months, sparking debates among investors on whether to hold, sell, or buy the electronics manufacturing giant. This sharp correction from highs near ₹18,700 reflects a mix of policy headwinds, valuation concerns, and shifting market dynamics, even as recent trading shows flickers of resilience.

By Ajaykumar Makwana | Updated: Feb 17, 2026, 8:00 PM IST

Stock Performance Snapshot

Dixon Technologies hit a 52-week low around ₹11,700 in late December 2025, down 35% from September peaks, with year-to-date 2025 losses nearing 34%. By mid-February 2026, the stock traded around ₹11,700-₹11,750, posting a modest 2.4% daily gain on February 16 amid high volumes of ₹176 crore, outperforming its sector. Short-term momentum appears above 5-day and 20-day moving averages, but it lags longer-term ones, signaling caution.

Key Factors Behind the Decline

Extended IT hardware import norms have clouded growth prospects for domestic players like Dixon, prompting fears of EPS cuts for FY27 and beyond. Intensifying competition in mobile phone assembly, moderating smartphone sales, and client market share losses added pressure, with Q3 FY26 revenue growth flattening sequentially. Profit booking after a multi-year rally, coupled with high valuations at 17.4 times book value, fueled the sell-off, erasing much of prior gains.

Financial Highlights

Q2 FY26 showed strength with EBITDA surging 152% YoY to ₹1,057 crore and margins expanding to 7.1%, driven by robust profit before tax growth of 74.6%. Delivery volumes rose 5% recently, hinting at institutional buying interest, though the market cap hovers at ₹71,000 crore in the mid-cap range. Despite this, analysts flag risks from other income reliance (₹910 Cr) and promoter holding dips over three years.

Top Broker Views

Brokers are split: Morgan Stanley stays 'Underweight' with a ₹11,563 target, citing import norm uncertainties; CLSA cuts its target to ₹15,800 from ₹18,800 but holds 'Outperform'. Phillip Capital is bearish at ₹9,085, predicting volume declines from FY27 competition, while MarketsMojo rates it 'Hold' (Mojo Score 51, down from 'Buy'). Long-term bulls eye PLI scheme benefits and electronics sector growth via ventures like Vivo JV.

Broker Rating Target Price Key Rationale

Morgan Stanley Underweight ₹11,563 Import norms uncertainty
CLSA Outperform ₹15,800 Near-term sales moderation
Phillip Capital Sell (implied) ₹9,085 Competition eroding volumes
MarketsMojo Hold N/A Mixed technicals

Hold, Sell, or Buy?

Short-term traders may hold for potential reversals amid rising volumes, but sellers should consider if valuations remain stretched post-correction. Long-term buyers could accumulate on dips if policy clarity emerges, given India's EMS boom, though risks from competition loom large. Investors should monitor Q3 results and JV updates closely for directional cues.

FAQs - Dixon Technologies

Q.1 What was Dixon Technologies' consolidated revenue in Q2 FY26 (Jul-Sep 2025)?

A.1 Revenue reached ₹14,855-₹15,351 crore, marking 28.8-33% YoY growth from ₹11,528-₹11,534 crore, driven by mobile (₹13,361 crore, +41%) and telecom surges (+148%).

Q. 2 How did net profit and margins perform in Q2 FY26?

A. 2 Consolidated net profit soared 72-81% YoY to ₹670-₹746 crore (EPS ₹110.72), with EBITDA up 152% to ₹1,057 crore (7.1% margin); PBT rose 75% to ₹924 crore.

Q.3 What were the key revenue figures for Q3 FY26 (Oct-Dec 2025)?

A. 3 Consolidated operating revenue hit ₹10,364-₹10,678 crore (+2% YoY), with mobiles/EMS at ₹9,750 crore, consumer electronics ₹567 crore, and home appliances ₹355 crore (11.5% margin).

Q.4 What was the net profit growth in Q3 FY26?

A. 4 PAT jumped 49-69% YoY to ₹285-₹321 crore (EPS ₹36.12 basic), beating estimates by ₹97 crore; ROE stood at 32%, ROCE 45.1%, with EBITDA +5.8% to ₹421 crore.

Q. 5 How did Q2 vs Q3 FY26 segments fare?

A. 5 Q2 mobiles dominated with 41% growth and ₹472 crore op. profit (+53%), while Q3 saw steady mobiles but stronger home appliances (11.5-11.7% margins); nine-month PAT reached ₹1,346 crore.

Dixon Technologies posted strong Q2 FY26 results with revenue up 29-33% YoY and PAT surging 72-81%, while Q3 FY26 showed moderated revenue growth but impressive 49-69% PAT jumps amid segment expansions.