Dixon Technologies stock slumps despite strong Q4 earnings, here’s why

Dixon Technologies stock slumped nearly 8 per cent in early trade amid mixed valuations and concerns over PLI expiry impact in FY27.

Global brokerage CLSA assigned outperform rating at an increased target price of ₹19,000 due to strong revenue and margin stability, while Nomura maintained buy at ₹21,202 per share.

Emkay Global has reiterated buy at a slashed target price of ₹19,800. The brokerage has cut FY26 AND FY27 EPS to factor in the delay in Vivo JV and in display module manufacturing.

The brokerage observed that Dixon has filed for PLI pertaining to Q4FY24 and FY25, remaining eligible PLIs have been received for the previous year. The margin impact from mobile PLI (set to expire in FY26) is limited to 0.6 per cent.

Meanwhile, the Q4FY25 performance has been a mixed bag as revenue missed estimates, according to Yes Securities.

Revenue beat was driven by the performances of mobile phones and electronics manufacturing services (EMS) businesses.

The analysts believe that Dixon will continue to deliver strong growth in the medium term as it has been able to add new customers on a consistent basis; strong performance in new product categories, IT hardware; revenue from telecom vertical; and investing in backward integration to improve efficiency.

However, Yes Securities assigned reduce rating at a target price of ₹15,471.

The company’s consolidated net profit rallied over 3-fold y-o-y to ₹401 crore in the March 2025 quarter as against ₹95.17 crore in the corresponding quarter last year.

The revenue from operations stood at ₹10,292.54 crore in the quarter under review as against ₹4,657.97 crore in the corresponding quarter previous year.

In FY25, the profit rose to ₹1,095.54 crore from ₹367.75 crore last year.

Dixon shares traded 6.14 per cent lower on the BSE at ₹15,549.15 as at 12.08 pm, after hitting a low of ₹15,272.75.

Published on May 21, 2025