1. At a Glance
In Q1 FY26, Dixon Technologies flexed its EMS muscles like a bodybuilder on a Red Bull binge: ₹12,836 Cr in revenue (+95% YoY) and ₹280 Cr in PAT (+68%). Apple who?
2. Introduction with Hook
If Foxconn had a desi cousin with jugaad, scale, and a PE ratio high enough to induce vertigo—it would be Dixon.
From making TVs to powering India’s mobile manufacturing dream, this company is now sipping champagne with the likes of boAt, Xiaomi, and even Apple (indirectly).
- Q1 FY26 Revenue: ₹12,836 Cr
- Net Profit: ₹280 Cr
- YoY Growth: +95% revenue, +68% PAT
- ROE: 33%
- Bonus round: ₹8/share dividend & a JV with Signify
3. Business Model (WTF Do They Even Do?)
Dixon = EMS = India’s contract manufacturing god-tier player.
- Mobile & EMS (84% of revenue) → Smartphones, feature phones, IT hardware, telecom infra
- Lighting & Electrical (JV with Signify)
- Consumer Durables → Washing Machines, TVs, Set-top boxes
- Reverse Logistics
- Security & Surveillance
- Wearables, Hearables, IoT, PCBs
They don’t own brands, they build for brands. Think OEM with Indian jugaad scale.
4. Financials Overview
| Particulars | FY23 | FY24 | FY25 | TTM |
|---|---|---|---|---|
| Revenue (₹ Cr) | 12,192 | 17,691 | 38,860 | 45,116 |
| EBITDA (₹ Cr) | 519 | 705 | 1,508 | 1,742 |
| PAT (₹ Cr) | 255 | 375 | 1,233 | 1,373 |
| EPS (₹) | 42.9 | 61.5 | 181.9 | 197.4 |
| ROE (%) | 23% | 33% | 33% | 33% |
| ROCE (%) | 24% | 29% | 40% | 39.8% |
Yo. Those are unicorn numbers with manufacturing boots.
5. Valuation
- Market Cap: ₹97,488 Cr
- P/E: 114x (TTM EPS ₹197)
- Book Value: ₹500 → P/B = 32x
- ROE: 33% = premium worthy
Fair Value Range (Based on scenarios):
- P/E 70 (high-growth justified): ₹13,790
- P/E 85 (bull case): ₹16,750
- DCF (margin-safety adjusted): ₹13,000–₹15,000
Fair Value Range: ₹13,000–₹16,750
CMP ₹16,112 = near upper limit. Not cheap. But quality never is.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results = Fire: Revenue ₹12,836 Cr, PAT ₹280 Cr
- JV with Signify (Philips Lighting) → Exited lighting biz, got cash & equity
- BoAt JV still rockin’
- Rumors of Apple indirect contract for local sourcing
- PLI benefits continue to fuel bottom line
- Order book > ₹30,000 Cr across verticals
7. Balance Sheet
| Particulars (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 12 | 12 | 12 |
| Reserves | 1,273 | 1,683 | 2,998 |
| Borrowings | 453 | 489 | 671 |
| Total Liabilities | 4,679 | 6,990 | 16,767 |
| Fixed Assets | 1,244 | 1,996 | 2,775 |
| Investments | 44 | 20 | 536 |
| Other Assets | 3,272 | 4,905 | 13,201 |
Flexing harder than Mr. Olympia.
8. Cash Flow – Sab Number Game Hai
| Cash Flow (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash Flow | 726 | 584 | 1,150 |
| Investing Cash Flow | -356 | -531 | -1,229 |
| Financing Cash Flow | -330 | -70 | -27 |
| Net Cash Flow | 41 | -17 | -106 |
Narrative:
- Strong operating engine
- Capex is aggressive = expansion in full throttle
- Financing stable, cash burn for growth
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 24 | 29 | 40 |
| ROE (%) | 23 | 33 | 33 |
| Debt/Equity | 0.27 | 0.23 | 0.22 |
| Cash Conversion Cycle | 2 | -6 | -5 |
| Working Cap Days | -0 | -1 | 4 |
Verdict:
- Working capital = tightly managed
- ROCE is elite
- Leveraging low-cost debt to fund high-ROI growth
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| Q4 FY25 | 10,293 | 465 | 66.54 |
| Q1 FY26 | 12,836 | 280 | 37.20 |
YoY Q1 Profit Up 68%
Slight dip QoQ due to seasonality and higher depreciation—but still strong.
11. Peer Comparison
| Company | P/E | ROE (%) | Rev (TTM ₹ Cr) | PAT (₹ Cr) | OPM (%) |
|---|---|---|---|---|---|
| Dixon Tech | 114 | 33 | 45,116 | 1,373 | 4% |
| PG Electroplast | 78 | 15 | 4,870 | 287.8 | 10% |
| Havells India | 70 | 19 | 21,427 | 1,410 | 10% |
| Cellecor | 25 | 25 | 1,026 | 30.9 | 5.3% |
Translation:
Dixon: highest revenue, best ROE, lowest OPM (EMS effect), most expensive. Quality costs money.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Jun ’23 | Mar ’24 | Jun ’25 |
|---|---|---|---|
| Promoters | 34.04% | 32.27% | 28.95% |
| FIIs | 15.00% | 21.81% | 20.55% |
| DIIs | 24.61% | 23.07% | 26.68% |
| Public | 26.36% | 22.86% | 23.81% |
- Promoter stake dropping = Possible dilution?
- FIIs, DIIs still hungry → high institutional confidence
- Public holding stable at 23%
13. EduInvesting Verdict™
Dixon is the Dopamine Dispenser of the EMS world. Growth? ✅
Profitability? ✅
JV with Signify and BoAt? ✅
Apple-level flex without Apple’s arrogance? ✅
Yes, valuation is sky high—but so is execution. This ain’t a “value” play. This is a “vision” play. As long as the execution continues and promoter exits don’t become frequent flyers, Dixon might just be the EMS Bharat needs.
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: Dixon Technologies, EMS, Mobile Manufacturing, Q1 FY26, BoAt JV, Make in India, Signify JV
