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Dixon Tech's Growth Slows Amidst Weak Demand
13 May
Summary
- Dixon Tech reported 2% revenue growth in Q4FY26, slowing from previous periods.
- Smartphone volumes missed targets due to weak demand and rising chip prices.
- The company plans to expand component manufacturing for future revenue streams.
Dixon Technologies reported a modest 2% year-on-year revenue growth to ₹10,511 crore in Q4FY26, mirroring the previous quarter's performance. This marks a slowdown from its prior rapid expansion, with full-year revenue reaching ₹48,873 crore, largely driven by earlier strong quarters. The company cited weaker consumer demand and rising input costs, particularly memory chip prices, which inflated smartphone costs and reduced demand, leading to approximately 5.6 million units sold against a target of 7 million.
Profitability in the mobile segment was also affected, with EBITDA declining despite higher average selling prices. Looking ahead, Dixon Technologies aims to offset these pressures by increasing its focus on component manufacturing. Plans include significantly expanding camera module capacity and launching a joint venture with HKC by the end of FY27, which is expected to yield better margins than traditional assembly. The company also anticipates growth in its telecom, networking, and IT hardware businesses.
