Dixon Technologies , a leading electronics manufacturing services (EMS) company, has reported strong financial results for the second quarter of fiscal year 2026, with significant growth across key metrics despite facing some challenges in the consumer electronics segment.

Financial Highlights

The company maintained a negative 6 days working capital cycle and reported a return on capital employed of 49.10% and return on equity of 34.30% as of September 30, 2025.

Segment Performance

Mobile and EMS

• Revenue: ₹13,361.00 crores (41% YoY growth)
• Operating profit: ₹472.00 crores (53% YoY growth)
• Telecom segment revenue: ₹1,635.00 crores (148% YoY growth)
• IT hardware revenue: ₹331.00 crores
• Hearables and wearables revenue: ₹207.00 crores

Consumer Electronics

• Revenue: ₹956.00 crores
• Operating profit: ₹39.00 crores
• Refrigerator business revenue: ₹145.00 crores

Home Appliances

• Revenue: ₹429.00 crores
• Operating profit: ₹50.00 crores
• Operating margin: 11.70%

Strategic Developments

1. Joint Ventures and Acquisitions:

   • Acquired 51% stake in Q Tech India for camera and fingerprint modules manufacturing
   • Received PN3 approval for joint venture with Longcheer
   • Formed a 74:26 JV with HKC for display modules

2. Capacity Expansion:

   • Creating capacity for 24 million smartphone display modules and 2 million notebook display modules annually
   • Plans to expand smartphone display module capacity to 60 million units per annum
   • Expanding into LED TV and automotive displays with capacities of 2 million and 1 million units per annum, respectively

3. New Product Categories:

   • Entering telecom backhaul microwave radios manufacturing for a leading U.S. Telecom customer
   • Expanding refrigerator product portfolio to include mini bars, deep freezers, and visi coolers

4. Future Outlook:

   • Expects mobile phone volumes of 55-60 million units for the next fiscal year
   • Targets IT hardware business of ₹4,000-5,000 crores in the next two years

Mr. Atul Lall, Vice Chairman & Managing Director of Dixon Technologies, commented on the results, stating, "We witnessed strong momentum in the quarter with healthy volume growth across various smartphone brands. Dixon remains the largest domestic manufacturer of mobile phones with high volume capabilities and best-in-class infrastructure."

The company faced some challenges due to the GST rate reduction announced in mid-August, which led to deferred purchases in TVs, refrigerators, and washing machines until September 22. However, the company expects demand to normalize in the coming quarters.

Dixon Technologies continues to focus on backward integration, expanding its product portfolio, and exploring new growth opportunities in telecom and IT hardware segments. The company's strategic joint ventures and capacity expansions are expected to drive growth and improve margins in the coming years.

Dixon Technologies , a leading electronic manufacturing services (EMS) company, has outlined an ambitious growth strategy, targeting a significant increase in sales and improved profit margins over the next few years. The company has also revised its smartphone volume forecast for FY26/27.

Revised Smartphone Volume Forecast

Dixon Tech has adjusted its smartphone volume projection for FY26/27:

The company has lowered the upper end of its projection by 3 million units, indicating a more conservative outlook for this segment.

Sales Target and Timeline

Despite the revised smartphone forecast, Dixon Tech's management maintains confidence in achieving a remarkable sales milestone:

This target represents a substantial growth objective for the company, highlighting its optimistic outlook on future business prospects.

Margin Improvement Strategy

The company has also detailed its plans for enhancing profitability:

• Operating leverage |

These margin expansion plans indicate Dixon Tech's focus on improving operational efficiency and cost management.

Segment-Specific Expectations

Dixon Tech has provided insights into margin expectations for specific product segments:

The varied margin expectations across different product lines suggest a diversified approach to product management and profitability.

Dixon Technologies' ambitious sales target and margin improvement strategy reflect the company's confidence in its growth trajectory, despite the revised smartphone forecast. The focus on backward integration and operating leverage indicates a strategic approach to enhancing profitability. However, investors should note that these are forward-looking statements and actual results may vary based on market conditions and execution of plans.