News

Dixon Tech shares surge after analysts cite re-rating triggers, attractive valuationsManagement expects approval for Vivo PN3 soon and anticipates ECMS approval for camera and display modules shortly.By Meghna Sen  January 30, 2026, 10:00:41 AM IST (Published)2 Min ReadShares of Dixon Technologies (India) Ltd. opened lower on Friday, January 30, after the company reported largely in-line quarterly results. The stock, however, recovered early losses and is now trading 3% higher.

Revenue and margins came in line with expectations, while PAT surged above forecasts due to a one-off item.

Mobile revenue grew 5% YoY, defying expectations of a decline, despite weaker volumes. Overall, margins expanded across segments by 10-130bps YoY.

Concall highlights

Management expects approval for Vivo PN3 soon and anticipates ECMS approval for camera and display modules shortly.

Q3FY26 performance vs poll estimates (YoY)

Revenue rose 2% to ₹10,672cr (poll: ₹10,783cr)

EBITDA increased 6% to ₹414cr (poll: ₹411cr)

EBITDA margin expanded 20bps to 3.9% (poll: 3.8%)

PAT surged 68% to ₹287cr (poll: ₹150cr)

What brokerages are saying

JPMorgan maintains an 'Overweight' rating with a price target of ₹13,700.

The brokerage said that Dixon cut its FY26 mobile volume guidance to 34-35mn units (from 40-42mn) and withdrew FY27 guidance (from 55-65mn), citing memory price inflation and delays in Vivo JV approvals.

JPMorgan said the move provides flexibility and optionality if Vivo approvals come through.

Nomura retains a 'Buy' rating with a target of ₹14,678, citing growth recovery and new customer ramp-ups.

It expects Dixon to deliver a 51% EPS CAGR over FY26-28F, with pending government approvals acting as key catalysts.

The stock, trading at 32 times its FY28F earnings per estimates, looks attractive given the outlook.

CLSA also recommends 'Buy' with a target of ₹15,880.

It said that Q3 revenue fell 28% QoQ in line with estimates, with smartphone sales impacted by elevated memory prices. CLSA expects this pressure to continue in lower- and mid-tier segments in Q4.

The brokerage pointed to margin-accretive backward-integration initiatives and said near-term catalysts include Vivo PN3 approval, clarity on PLI extension, and progress in other segments.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsDixon TechDixon Tech Q3Dixon Technologies