Why did Dixon Technologies shares jump 5% despite 57% QoQ decline in net profit?

Synopsis: The EMS stock has been in the spotlight after giving out its Q3FY26 result. Dixon Technologies has a 3 year year sales CAGR of 60 percent, but has witnessed its profit fall by 57 percent on QoQ basis.

Dixon Technologies (India) Ltd, which provides manufacturing services for electronic goods and has been supporting manufacturing products of brands of Samsung,Panasonic, Philips and Boat, has gone up by 5 percent in the day’s trade despite its QoQ profit fall of 57 percent. 

With a market cap of Rs 63,265 Cr, Dixon Technologies (India) Ltd saw its stock hit an intraday high of Rs 10846 which is 5 percent higher than the previous close of Rs 10338. The company stock has given a compounded return of 57 percent in the last three years.

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 2 percent YoY, from Rs 10,454 Cr in Q3FY25 to Rs 10,672 Cr in Q3FY26, while the QoQ decreased by 28 percent from Rs 14,855 Cr. The net profits grew by 48 percent going from Rs 216 Cr in Q3FY25 to Rs 321 Cr in Q3FY26, while the QoQ decreased by 57 percent from Q2FY26’s Rs 746 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 34 percent YoY, from Rs 28567 Cr in 9MFY25 to Rs 38362 Cr in 9MFY26. The net profits for the same period grew by 75 percent going from Rs 767 Cr to Rs 1346 Cr.

The company has a 3 year sales CAGR of 54 percent, while the TTM is at 46 percent. The company’s 3 year profit CAGR is at 60 percent, while the TTM number is at 122 percent. The company also has a ROCE of 40 percent and a ROE of 33 percent.

Revenue Mix

Coming to the revenue mix in Q3FY26 it derived 92 percent of its revenue from  Mobile & Other EMS Division, 5 percent from Consumer Electronics & Appliances and 3 percent from Home Appliances. 

Week Quarterly Growth

Dixon Technologies operates in the electronics manufacturing services (EMS) space, providing manufacturing support across segments such as consumer electronics, lighting, home appliances, closed-circuit television (CCTV) cameras, and mobile phones. Given its exposure to consumer-facing industries, the company’s business is inherently influenced by seasonality, which in turn impacts its revenue and profitability across quarters.

Historically, Dixon Technologies has reported stronger Q2 performance compared to Q3. This trend could be attributed to higher order inflows in Q2, driven by festive-season demand. Many of Dixon’s client companies typically ramp up production and build inventory ahead of the festive period, leading to increased manufacturing volumes in the preceding quarter and supporting better financial performance.

YoY matter more than QoQ

Being in this industry space the company’s result should be analysed by looking into the YoY growth, and talking about Dixon Technologies, the company has witnessed a 48 percent YoY profit growth while the revenue has also increased on YoY basis. Moreover, the company did see the same trend in the 9M numbers where the revenue grew by 34 percent and net profits by 75 percent. 

Business Overview

Incorporated in 1993, Dixon Technologies (India) Limited is a Noida-based Electronic Manufacturing Services (EMS) company. It operates across multiple electronics verticals including consumer electronics, lighting, home appliances, mobile phones, CCTVs, wearables, audio products, and AC-PCBs, while also undertaking reverse logistics. The company has been manufacturing for global and domestic brands such as Samsung, Xiaomi, Panasonic, Philips, Motorola, TCL, OnePlus, Godrej, Havells, Wipro, and Boat.

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