Dixon Tech share price jumps 3% despite Q4 profit fall; brokerages trim targets after muted earnings

Shares of Dixon Technologies rose more than 3 per cent in early trade on Tuesday, May 13, even as the company reported a sharp decline in fourth-quarter profit and brokerages cut target prices after a muted earnings performance.

The stock climbed to an intraday high of Rs 10,510 in early deals on the BSE.

Profit drops 36% in Q4

Dixon Technologies reported a 36.03 per cent year-on-year (YoY) decline in consolidated net profit at Rs 256.41 crore for the quarter ended March 31, 2026, compared with Rs 400.82 crore in the year-ago period.

Revenue from operations, however, rose 2.12 per cent YoY to Rs 10,510.51 crore in Q4 FY26 from Rs 10,292.54 crore a year ago.

The company’s core mobile and electronics manufacturing services (EMS) business, which contributes around 90 per cent of total revenue, posted a 4 per cent YoY rise in revenue to Rs 9,485 crore during the quarter.

Revenue from the consumer electronics and appliances segment, which includes LED TVs and refrigerators, stood at Rs 697 crore, marginally higher than Rs 689 crore in the same quarter last year.

The home appliances division reported a 9 per cent YoY growth in revenue to Rs 329 crore.

Margins remain under pressure

The company’s total expenses increased to Rs 10,230.77 crore during the quarter from Rs 9,981.92 crore a year earlier, weighing on profitability.

At the operating level, EBITDA fell 8 per cent YoY to Rs 418 crore in Q4 FY26 from Rs 454 crore in the corresponding quarter last year.

EBITDA margin contracted 40 basis points to 4 per cent from 4.4 per cent a year ago, reflecting continued pressure from rising input costs and softer consumer demand.

Brokerages said higher global memory prices affected affordability in the smartphone segment, leading to slower growth in the second half of FY26.

Brokerages cut targets after results

Several global brokerages retained their existing ratings on the stock but revised target prices lower after the earnings announcement.

JPMorgan maintained its “Overweight” rating on Dixon Technologies but cut the target price to Rs 12,700 from Rs 13,000.

Jefferies retained a “Hold” rating and reduced the target price to Rs 10,280 from Rs 10,330. The brokerage said sales growth decelerated sharply in the second half of FY26 due to weaker consumer sentiment and higher memory prices.

Jefferies also noted that approval for the Vivo joint venture under the government’s production-linked incentive framework is still awaited. It added that the outlook for domestic smartphone volumes remains weak.

CLSA maintained a “Hold” rating and cut the target price to Rs 10,400 from Rs 12,100. The brokerage said Dixon’s near-term earnings remain vulnerable due to sustained memory price inflation and slowing smartphone market share gains.

Goldman Sachs retained a “Sell” rating and lowered the target price to Rs 9,790 from Rs 9,985.

UBS maintained a “Buy” rating while marginally trimming the target price to Rs 13,700.

HSBC retained its “Hold” call and raised the target price to Rs 12,000 from Rs 11,500. HSBC said execution on new growth areas such as data centre servers will be important going ahead.

Macquarie maintained an “Outperform” rating with a target price of Rs 15,000. The brokerage said management commentary for FY27 remained positive despite expectations of flat smartphone volumes.