Why Did Dixon Technologies' Profit Fall 39% Sequentially to Rs 280 Crore in Q1?
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Synopsis
Dixon Technologies faces a challenging first quarter with a significant drop in sequential profits, but year-on-year figures reveal a different story. Discover the key factors behind these financial results and what they mean for the future of this homegrown giant.
Key Takeaways
- Net profit: Rs 280 crore in Q1 FY26.
- Sequential decline: 39% drop from Q4 FY25.
- YoY growth: Profit doubled compared to Q1 FY25.
- Revenue increase: Rs 12,835.66 crore in Q1 FY26.
- Stock performance: 21.3% recovery since June.
Mumbai, July 22 (NationPress) Dixon Technologies reported a consolidated net profit of Rs 280 crore for the first quarter of the current financial year (Q1 FY26), marking a 39% decline sequentially, as per its exchange filing on Tuesday. In the previous quarter (Q4 FY25), the company had recorded a net profit of Rs 465 crore.
Despite this sequential drop, the net profit showed remarkable growth on a year-on-year (YoY) basis, doubling from Rs 139.70 crore in the same quarter last year (Q1 FY25).
The company's revenue from operations also experienced a significant increase, reaching Rs 12,835.66 crore, up from Rs 10,292.54 crore in the previous quarter and Rs 6,579.8 crore a year ago.
The operating profit contribution from the Mobile and Other EMS Division rose to 82% from 69% in the previous year, and its revenue share expanded to 91% from 79% in Q1 FY25.
Moreover, the company's EBITDA climbed to Rs 484 crore in this quarter, reflecting an 89% YoY increase.
However, Dixon Technologies faced a surge in total expenses, which jumped by Rs 2,497 crore to reach Rs 12,478.58 crore, compared to Rs 9,981.92 crore in Q4 FY25.
On Tuesday, the company's shares closed in the negative zone at Rs 16,110.0, down Rs 171 or 1.05%. Despite this, the stock has rebounded well, increasing 21.3% since a two-month low of Rs 13,280 in late June.
From February 2023 to December 2024, the stock saw a remarkable bullish run, yielding an impressive 559% return and hitting an all-time high of Rs 19,148 per share. After a subsequent correction due to profit booking, it has since recovered.
Currently, the stock stands 16% below its peak at Rs 16,112.
Point of View
I view Dixon Technologies' recent profit decline with cautious optimism. The stark contrast between sequential and year-on-year figures suggests resilience and potential for recovery in the upcoming quarters. It's essential for stakeholders to monitor the company's strategic adjustments in light of rising expenses.
NationPress
22/07/2025
Frequently Asked Questions
What was Dixon Technologies' profit in Q1 FY26?
Dixon Technologies reported a net consolidated profit of Rs 280 crore in Q1 FY26.
How much did Dixon's profit decline sequentially?
The profit declined by 39% sequentially.
What was the year-on-year profit comparison?
The net profit doubled from Rs 139.70 crore a year ago.
What was Dixon's revenue from operations?
The revenue from operations reached Rs 12,835.66 crore.
How did Dixon Technologies' stock perform recently?
The stock closed at Rs 16,110.0, down 1.05%, but has risen 21.3% since late June.
