Lall made these comments in a post-results interaction with CNBC-TV18 on Friday, September 1, 2025.
Dixon’s CEO and CEO also added that margins in its mobile segment, which is the company’s largest, will also improve from 3.3% to 4.5% over the next 12 to 18 months as it looks to include more added value in the business. . The mobile segment contributed 82% to Dixon’s revenue during the quarter, compared to 57% during the prior-year quarter.
Lall mentioned that the mobile segment is the biggest driver of growth and that the targeted mobile market is the largest in the economy. He added that all brands in the Android ecosystem are Dixon customers.
Dixon Technologies reported revenue of Rs 11,534 crore during the September quarter compared to Rs 4,943 crore it had reported in the base quarter. The quarter also saw an exceptional profit of Rs 210 crore.
The EBITDA margin for the quarter stood at 3.7%, in line with the survey expectation of 3.8%. Its earnings before interest, taxes, depreciation and amortization (EBITDA) doubled from last year to Rs 426 crore. Lall believes margins will remain in this range for Dixon as a company based on the change in the company’s sales mix.
Dixon’s home appliances and consumer electronics business saw its contribution fall to 12% from 29% last year and revenue declined 2% year-on-year to Rs 1,413 crore.
Brokerage firm Nomura has the highest price target for Dixon Technologies on the Street. He maintained a ‘buy’ rating on the stock with a target price of Rs 18,564.
Nomura wrote in its note that mobile, hardware and IT components are a big long-term opportunity for the company.
It has increased Dixon’s revenue estimate by 10%, 8% and 5% respectively and earnings per share (EPS) estimates by 3% and 5% for the 2025-2027 financial year.
The brokerage said the focus on component manufacturing will be a key tailwind for margin whose full impact will be visible from fiscal 2027.
Dixon Technologies shares opened 5% higher but immediately cooled off to trade 2.5% higher at ₹15,422. The stock is up 132% so far in 2024.
First published: October 25, 2024 9:07 am IS
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