Dixon Tech's Q1 Profit Doubles to ₹280 Crore, Margin Remains Flat

Smartphone maker Dixon Technologies’ profit after tax (PAT) doubled in the first quarter of the financial year 2025-26 (Q1 FY26). In an exchange filing, the company reported PAT of ₹280 crore in the June quarter, up from ₹140 crore in the same period last year. However, the PAT margin remained flat at 3.8%, down 10 basis points from 3.9%.

The Noida-based company’s revenue jumped 95% year-on-year to ₹12,838 crore, compared to ₹6,588 crore reported in Q1 FY25. EBITDA rose 89% YoY to ₹484 crore from ₹256 crore, with the EBITDA margin improving by 20 basis points to 2.9%, from 2.7% in the year-ago quarter.

The company reported a negative free cash flow of ₹214 crore, compared to ₹62 crore as of March 31, FY25. Net debt stood at ₹6,588 crore. Return on Capital Employed (ROCE) rose to 33.9%, up from 32.5% as of March 31, 2025, while the adjusted Return on Equity (ROE) increased to 48.5%.

Shares of Dixon Technologies ended 1.1% lower on Tuesday, at ₹16,114, ahead of the results announcement.

Segment-wise, the Mobile and Other EMS Division delivered a strong performance, with revenue of ₹11,663 crore—up 125% from ₹5,192 crore in Q1 FY25. Operating profit for this segment rose to ₹395 crore from ₹171 crore, with an improved margin of 3.4%.

The Consumer Electronics & Appliances segment, which includes LED TVs and refrigerators, saw revenue fall to ₹672 crore in Q1 FY26, from ₹855 crore a year ago. Operating profit declined slightly to ₹40 crore from ₹42 crore.

In the Home Appliances segment, revenue grew marginally to ₹313 crore from ₹305 crore in Q1 FY25, with operating profit at ₹36 crore. The segment maintained healthy margins of around 11.5%.

Dixon has recently signed an agreements with Chinese electronic component firms -- Chongqing Yuhai Precision Manufacturing Co Ltd and the Indian arm of Kunshan Q Technology -- for manufacturing and sales of electronic components used in electronic devices like mobile phones and laptops, among others.