EMS major Dixon Technologies announced its September quarter results (Q2FY26) on October 17, post-market hours, reporting an 81% jump in consolidated net profit to ₹746 crore, up from ₹412 crore in the same period last year.

The sharp rise in net profit was largely driven by other income of ₹496 crore, including ₹465 crore from the sale of the company’s stake in Aditya Infotech Ltd and a ₹28 crore gain from the transfer of its lighting business undertaking.

Adjusted for these one-time gains, the company’s net profit stood at ₹323 crore. On the top line, adjusted revenue from operations came in at ₹14,858 crore, which is a 29% YoY growth. Operating profit improved 34% YoY to ₹564 crore, with margins expanding by 20 basis points to 3.8%.

Segment-wise performance

Segment-wise, the Mobile & Other EMS Division reported another strong growth, with the segment revenue rising 41% YoY to ₹13,361 crore, and its contribution to total revenue moving to 90%.

Meanwhile, the Consumer Electronics & Appliances segment (LED TVs and Refrigerators) saw a 42% QoQ improvement in revenue but a 32% YoY decline, with its revenue contribution dropping further to 6%.

The Home Appliances division also showed a 37% QoQ rise in revenue to ₹429 crore, but on a YoY basis, it fell 3%, with segment contribution decreasing to 3% from 4% in the same period last year.

Dixon Technologies share price trend

The company’s shares came under pressure in recent sessions, dropping a cumulative 4.2% over five sessions to ₹16,700. The decline was triggered after global brokerage firm Phillip Capital assigned a ‘Sell’ rating to the stock with a target price of ₹9,085.

The brokerage highlighted that Dixon faces significant client concentration risk, as domestic volumes from Motorola, its largest client, have fallen sharply.

In FY25, nearly 80% of Dixon’s mobile phone revenue came from Motorola, which fell to 60% by Q2FY26, largely due to lower domestic shipments and rising competition from Apple and other Android brands.

Disclaimer: This story is for educational purposes only. 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.