Dixon Technologies Q2 FY27 results: net profit down 44.9% to ₹410.87 crore, revenue up 46.7%

How did Dixon Technologies perform in Q2 FY27?

Dixon Technologies reported consolidated revenue of ₹21,794 crore for Q2 FY27, up 46.7% from ₹14,855 crore in Q2 FY26 and 40.2% from ₹15,548 crore in Q1 FY27. EBITDA rose 6.3% year on year to ₹596.82 crore but increased 28.9% from the previous quarter. The EBITDA margin declined from 3.8% to 2.7% year on year and from 3.0% in Q1 FY27.

The company reported a net profit of ₹410.87 crore for Q2 FY27, against ₹745.70 crore in Q2 FY26 and ₹717.83 crore in Q1 FY27. Basic EPS was ₹67.44, compared with ₹123.60 a year earlier and ₹118.00 in the previous quarter. On the standalone basis, revenue was ₹1,593.15 crore and PAT was ₹123.44 crore, while profit before tax was ₹478.53 crore.

What changed in Dixon Technologies' costs and profit?

Cost of materials was ₹20,679 crore, up 53.1% from ₹13,504 crore in Q2 FY26 and 37.3% from ₹15,064 crore in Q1 FY27. Total expenses increased 47.9% year on year to ₹21,333 crore and 40.2% from ₹15,216 crore in the previous quarter. Employee cost rose 9.6% year on year to ₹215.72 crore, depreciation increased 14.3% to ₹110.06 crore, and other expenses declined 1.1% to ₹292.20 crore.

Other income fell 86.1% from ₹495.74 crore in Q2 FY26 to ₹68.73 crore in Q2 FY27 and declined 87.0% from ₹528.29 crore in Q1 FY27. Finance costs were ₹25.95 crore, down 32.3% year on year, while tax was ₹121.48 crore, down 31.7%. There was no exceptional item. PBT fell 42.6% year on year to ₹529.54 crore and 38.4% from ₹860.34 crore in Q1 FY27.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹37,341.3 crore, up 34.9% from ₹27,690.7 crore in H1 FY26. Total income rose 34.6% to ₹37,938.32 crore from ₹28,188.12 crore, while PBT increased 8.5% to ₹1,389.88 crore from ₹1,281.2 crore.

PAT for the first half rose 10.0% to ₹1,128.7 crore from ₹1,025.72 crore, and EPS increased 9.0% to ₹185.27 from ₹170.02. Revenue growth outpaced profit growth, and the H1 FY27 figures are not comparable with the corresponding prior period because the lighting business was transferred to a joint venture company with effect from 1 August 2025.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹29,177.91 crore, compared with ₹19,161.64 crore at 31 March 2026. Total equity rose to ₹6,728.43 crore from ₹5,386.67 crore, while borrowings increased to ₹668.73 crore from ₹467.5 crore. Cash and cash equivalents fell to ₹388.86 crore from ₹767.43 crore.

Inventories rose to ₹7,063.71 crore from ₹3,836.52 crore, trade receivables increased to ₹12,400.59 crore from ₹6,529.91 crore, and trade payables rose to ₹19,565.99 crore from ₹10,722.18 crore. H1 FY27 operating cash flow was negative ₹280.02 crore, compared with ₹880.84 crore in H1 FY26, while investing cash flow was negative ₹417.4 crore against negative ₹1,010.57 crore. Capital expenditure was ₹706.92 crore, compared with ₹558.93 crore a year earlier.

How has Dixon Technologies done over the last 8 quarters?

Dixon Technologies’ revenue rose in each of the last eight quarters on a year-on-year basis. Revenue reached ₹21,793.64 crore in Q2 FY27, the highest level in the eight-quarter series, while the lowest was ₹10,292.54 crore in Q4 FY25. The latest quarter therefore extended the upward revenue direction, although the EBITDA margin declined from 3.0% in Q1 FY27 to 2.7%.

Profit followed a different path from revenue. PAT peaked at ₹745.7 crore in Q2 FY26 and fell to ₹410.87 crore in Q2 FY27, while the EBITDA margin bottomed at 2.7% in the latest quarter, compared with 4.3% in Q4 FY25. The filing states that the latest quarter and half-year figures are not comparable with the corresponding prior periods because of the lighting-business transfer to a joint venture.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. It also approved the appointment of Prithvi Vachani as an Additional Director in the capacity of Executive Director for 5 consecutive years with effect from 30 October 2026, along with his remuneration, subject to shareholder approval.

Prithvi Vachani was serving as Vice President at Dixon Technologies and is the son of Executive Chairman Sunil Vachani. The same-day filing did not announce a dividend or fund raise.

What did the auditors point out?

The filing identifies an emphasis of matter. It states that Signify Innovations India Limited transferred its LED lighting manufacturing operations at Vadodara, Gujarat, to Lightanium Technologies Private Limited on a slump sale basis for a cash consideration of ₹140.30 crore. Following completion, Dixon Technologies and Signify Innovations India Limited each hold 50% of Lightanium’s post-issue share capital.

The auditor excerpt states that the financial figures for the quarter and half year ended 30 September 2026 are not comparable with the corresponding periods of the previous year and the current financial year because the lighting business was transferred to a joint venture company with effect from 1 August 2025. The excerpt does not state a going-concern issue or a qualified opinion.

What did Dixon Technologies' management say?

Management said FY27 mobile volumes are targeted at approximately 33–34 million units excluding Vivo, with 7–7.5 million units expected in Q3 FY27 and a return close to Q2 levels in Q4. FY28 volumes are seen at 55–60 million units including 18–20 million Vivo units and 6–8 million units from the new Indian brand. Mobile export volumes are expected at 3.5–4 million units in FY27, with significant growth anticipated in FY28.

Management expects IT hardware revenue of ₹6,000–6,500 crore in FY27 and ₹15,000–20,000 crore over the next couple of years, supported by a raised ₹500 crore global-category capex commitment. Group capex is expected at ₹1,200 crore in FY27 and ₹1,200–1,300 crore in FY28, while display investment is planned at about ₹1,000 crore over FY27–FY29 against eventual revenue potential of ₹6,000–7,000 crore.

Management said margins were affected by the expiry of mobile PLI 1 and elevated global memory prices linked to rapid expansion of AI infrastructure, with a lag in passing higher input costs through selling prices. The company also identified pass-through delays, weak consumer demand, the expiry of mobile PLI 1 and higher working-capital consumption as risks. Director and Group CFO Saurabh Gupta said there was no supply issue with memories, while adding that the issue concerned memory pricing.

How did Dixon Technologies shares react?

After the filing appeared, the stock was up 3.5% after five minutes, 3.7% after 15 minutes and 5.7% after 30 minutes. It closed the reaction day 12.0% above its pre-results close, compared with a 1.5% median rise for the Consumer Electronics industry and a 1.3% rise in the Nifty Midcap 150.

By the next day’s close, the stock was up 10.8% from its pre-results close. The industry median gain was 2.0% and the Nifty Midcap 150 rose 2.3%, leaving Dixon Technologies ahead of the industry median by 8.8 percentage points on the cumulative move.

Earlier reaction-day moves were mixed: 10.0% on 12 May 2026 and 1.5% on 29 January 2026, against declines of 4.0% on 31 July 2026, 3.3% on 17 October 2025 and 13.7% on 20 January 2025.

How did other Consumer Electronics companies do?

Five other Consumer Electronics companies that had filed this quarter had a median revenue growth of 34.6%. Four peers grew more slowly than Dixon Technologies, while one grew faster than the company. Dixon Technologies’ Q2 FY27 revenue growth was 46.7%.

All five peers with comparable profit data reported higher profit, and profit was compared across six peers in total.