Dixon Technologies share price drops over 7% despite stellar Q4 earnings; what should investors do now?
Shares of Dixon Technologies came under pressure on Wednesday, May 21, falling over 7 percent in intra-day trade despite the company reporting robust earnings for the March 2025 quarter (Q4FY25). The stock slipped as much as 7.4 percent to hit a day’s low of ₹15,337.15, extending recent volatility even as brokerages maintained a positive outlook.
The sell-off came as a surprise, given the company’s impressive operational performance. Consolidated profit after tax (PAT) surged 379 percent year-on-year (YoY) to ₹465 crore in Q4FY25, compared to ₹97 crore in the corresponding period last year. Revenue also more than doubled to ₹10,304 crore, marking a 120 percent YoY jump from ₹4,675 crore. Operating performance remained solid, with EBITDA climbing 128 percent to ₹454 crore during the quarter.
For the full financial year FY25, Dixon Technologies posted a 229 percent YoY increase in PAT, which rose to ₹1,233 crore. Revenue from operations also witnessed a steep 119 percent jump to ₹38,880 crore, underscoring the company’s strong growth momentum across segments.
Dividend Payout
Alongside the earnings, the company’s board recommended a final dividend of ₹8 per share (400 percent on face value of ₹2), subject to shareholder approval. The dividend declaration reflects confidence in the company’s cash flow and profitability.
What Are Analysts Saying?
Despite the dip in share price, analysts remain upbeat on Dixon Technologies’ long-term prospects. CLSA retained its ‘High Conviction Outperform’ rating and raised the price target to ₹19,000, citing strong revenue performance and margin stability. The brokerage expects smartphone volumes to rise to 42–44 million units in FY26 and over 60 million units in FY27, driven by new customer acquisitions, expanded wallet share, and export-led growth.
CLSA acknowledged that net profit in Q4 came in lower than estimates due to higher minority interest, but maintained a strong earnings outlook with a projected 45 percent PAT CAGR over FY25–28. The brokerage noted that even as benefits from the PLI scheme taper off, backward integration and scale efficiencies would support margins.
Nomura also echoed a positive view, maintaining its ‘Buy’ rating with a price target of ₹21,202. It said Dixon’s Q4 performance exceeded expectations, especially in the mobile segment, with exports and domestic orders scaling up. Nomura emphasized the company’s diversified client base and strategic partnerships, calling them a strong competitive advantage.
Meanwhile, Emkay Global reiterated a ‘Buy’ call but trimmed its price target by 6 percent to ₹19,800. The brokerage revised down FY26 and FY27 EPS estimates due to delays in the Vivo JV rollout and slower-than-expected progress in display module manufacturing. However, it remains optimistic on the company’s smartphone volume guidance of 40–45 million in FY26 and 60–65 million in FY27, citing strong export demand from clients like Motorola, IsmartU, and Compal.
Stock Performance Snapshot
Despite the sharp fall on Wednesday, Dixon Technologies has been a strong performer over the past year, delivering 85 percent returns. The stock is currently 20 percent below its 52-week high of ₹19,149.80, touched in December 2024, but remains up 81 percent from its 52-week low of ₹8,440.15, hit in June 2024.
So far in May, the stock has declined 6 percent, following a 25 percent surge in April. Prior to that, it posted declines of 5.4 percent in March, 7 percent in February, and 16.5 percent in January, reflecting a volatile start to the year.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
