New Delhi: Homegrown electronics manufacturing contractor Dixon Technologies reported a 100% rise in net profit to Rs.280 crore in Q1FY26 from Rs. 140 crore in the corresponding quarter last year. The surge net profit has been attributed to its mobile and other allied electronics manufacturing division which saw a stellar 125% rise in revenues to Rs.11,663 crore from Rs.5,192 crore year-on-year.
However, the company’s electronics and appliances manufacturing vertical, which includes manufacturing LED TVs and refrigerators, has seen a 21% decline in revenue to Rs.672 crore from Rs.855 crore last year. Similarly, its lighting products division also saw a 17% YoY decline in revenues to Rs.188 crore.
The company has seen a stellar rise in its valuations since its IPO in September 2017, with the share prices rising almost 3,000% since then. Riding on the government’s Make In India initiative, Dixon Technologies has been a prime beneficiary of the Production Linked Incentive (PLI) scheme introduced to boost domestic manufacturing.
The company’s profits have been steadily rising over the years, with investors appreciating the company’s regular dividend payouts.
On July 16, Dixon Technologies announced the acquisition of a controlling stake in a camera module manufacturer, aimed at broadening its capabilities in electronic manufacturing.
Although the company competes with Foxconn India, Tata Electronics, and Kaynes Technology in the electronics manufacturing space, its first-mover advantage has helped it develop key infrastructure in the segment, although manufacturing margins remain thin.
On July 23, Dixon’s shares rose 3% after the announcement.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
