The company reported a Q2 PAT of Rs 412 crore on Thursday, driven by increased mobile phone production and an exceptional gain of Rs 209.6 crore in the fiscal second quarter of FY2025.
Dixon posted a 120% YoY increase in revenues to Rs 18,116 crore in the July-September period, compared to Rs 4,944 crore a year ago.
Meanwhile, in the second fiscal quarter, Dixon Technologies announced it would divest its entire 50% stake in the joint venture AIL Dixon to Aditya Infotech through a transfer of 95 lakh equity shares of the JV. The one-time exceptional gain came from this transaction.
What Do Analysts Say After the Q2 Results?
Investec: Buy | Target Price: Rs 15,900
Investec has maintained a buy rating and raised the target price to Rs 15,900 from Rs 12,700. The strong Q2 was driven by a sharp ramp-up in mobile revenues, and the global brokerage firm continues to believe that IT hardware can be an attractive growth opportunity for Dixon. The company’s foray into component manufacturing can further improve its competitive strength and profitability.
Nuvama: Hold | Target Price: Rs 16,100
Dixon delivered a strong Q2 FY25, with revenue soaring 133% year-on-year to Rs 11,534 crore (29% above estimates), led by a 235% year-on-year surge in the mobile segment. EBITDA rose 113% year-on-year to Rs 4.26 billion (22% above estimates), with margins at 3.7%, impacted by a higher mobile mix. PAT surged 261% year-on-year to Rs 412 crore, boosted by investment gains, while adjusted PAT jumped 123% year-on-year to Rs 255 crore (20% above estimates). This performance underscores Dixon’s unparalleled operational execution.
HDFC Securities: Reduce | Target Price: Rs 12,700
Dixon’s Q2 results exceeded expectations, with revenue, EBITDA, and PBT growing by 133%, 114%, and 117%, respectively. The mobile and EMS division revenues grew by 3.4 times year-on-year, aided by increased volumes with existing customers and the consolidation of the Ismartu acquisition. Dixon is looking to backward integrate through display modules, precision components, and mechanicals (starting with mobile and expanding to IT hardware and LED TVs), which are expected to be margin-accretive and enhance customer stickiness.
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