Shares of Dixon Technologies rose nearly 10 percent on Wednesday, despite the company reporting a 36 percent decrease in net profit to ₹256 crore for the quarter ending March 31, 2026, down from ₹401 crore in the same period last year. Analysts noted that, despite the decline in profit—the first in 17 quarters—the company’s performance was better than anticipated.
In the same quarter, Dixon’s revenue increased to ₹10,510.51 crore, up from ₹10,292.54 crore in the previous year, and the company proposed a final dividend of ₹10 per share for FY26. During trading, the stock reached a high of ₹11,229.90 on the Bombay Stock Exchange (BSE) before closing slightly lower at ₹11,124.95, which reflects a gain of 9.73 percent.
According to Kotak Institutional Equities, Dixon’s fourth-quarter results exceeded expectations by 22 percent, largely driven by robust growth in the consumer electronics segment and increased average selling prices in the mobile segment due to rising memory costs. The brokerage maintained its “Buy” rating with a target price of ₹15,200.
Moreover, Equirus Securities reported that Dixon achieved strong operating cash flow (OCF) of ₹1,780 crore in FY26, with a pre-tax OCF/EBITDA conversion rate of 118 percent. Despite capital expenditures of approximately ₹1,060 crore for FY26, the company generated free cash flow of ₹720 crore and closed the fiscal year with cash and equivalents totaling ₹1,240 crore. However, Equirus revised its rating from “Long” to “Add,” adjusting the target price from ₹10,510 to ₹11,000.
Other foreign brokerages expressed caution regarding the stock, maintaining “Hold” ratings. CLSA lowered its target price from ₹12,100 to ₹10,400 while retaining a neutral stance, citing concerns over Dixon’s near-term earnings vulnerability due to ongoing increases in global memory prices and uncertain medium-term growth prospects as smartphone market share plateaus.
Jefferies has similarly downgraded its target price from ₹10,330 to ₹10,280 but kept a “Hold” rating. They pointed out that, despite a 35 percent decline in share price over the past six months, Dixon’s shares are trading at 51 times FY27 estimated price-to-earnings ratio, which is above many of its EMS peers.
HSBC noted that the fourth-quarter results aligned largely with consensus estimates, although mobile phone volumes fell slightly short of expectations. The bank emphasized the importance of timely execution on new growth initiatives, including data center servers, while maintaining a “Hold” rating with a target price of ₹12,000.
In contrast, Macquarie maintained a bullish outlook, reiterating its “Outperform” rating with a target price of ₹15,000.
Published on May 13, 2026.
