Share Price Rises Over 3% After Strong Q1 Results; Analysts Remain Bullish – Should You Buy?

Dixon Technologies' share price surged by over 3% today, July 23, amid higher volume following the announcement of strong Q1 results. The company reported a 100% increase in net profit and a 95% year-on-year revenue growth. The stock rose by Rs 229 early in the day, reaching Rs 16,669.

Stock Movement:

Dixon Technologies is trading at Rs 16567 on Thursday, July 3, gaining Rs 455 or 2.82% on the National Stock Exchange (NSE). The stock had opened at Rs 16,440, hit a high of Rs 16,669, while Rs 16,208 was the lowest intraday. However, the stock is still far away from its 52-week high of Rs 19148.

Aster DM Healthcare's trading volume was 3.22 times, trading 8 lakh shares compared to its 1-week average volume of 5 lakh shares. The company's current market value (market capitalisation) is Rs 1 Lakh crore.

Q1 FY26 Results:

Dixon Technologies, a leading player in the Indian electronics manufacturing services (EMS) industry, delivered impressive growth for the first quarter of FY26. The company's profit after tax (PAT) doubled compared to Q1 of the previous year, reaching Rs 280 crore, while EBITDA increased by 89%.

Revenue increased by 95% compared to the same period last year. Its EBITDA, or operating profit, also rose by 89%. The EBITDA margin remained stable at 3.8%, showing only a slight dip from 3.9% in the previous year.

The company's strong Q1 performance was driven by its Mobile & Other EMS Division, which saw a 125% jump in revenue to Rs 11,663 crore. This boosted total revenue by 95% to Rs 12,835 crore. The mobile division now makes up 91% of total revenue (up from 79%) and contributes 82% to operating profit (up from 69%).

Analysts Positive on Dixon Technologies:

Brokerages have reacted positively to Dixon's strong performance. JP Morgan raised its target price to Rs 19,500 from Rs 17,700, praising the company's growth momentum in the mobile sector.

Motilal Oswal (MOFSL) has also kept its BUY rating on the stock and raised its target price to Rs 22,100, up from the earlier Rs 20,500, based on its updated valuation.

According to Motilal Oswal Financial Services, Dixon's revenue, EBITDA, and net profit for Q1FY26 were higher than expected. The mobile segment saw strong growth, helped by the integration of Ismartu, increased orders from existing customers, and higher exports, leading to a year-on-year rise in mobile volumes.

"Dixon Technologies is expected to stay strong due to its large scale, strong customer ties, and backward integration. The company sees PCBA for industrial and automotive use as a key future growth area. The target price has been slightly reduced to Rs 19,000, but the BUY rating is maintained," Chirag Jain, Senior Research Analyst of Emkay Global Financial Services.

Dixon Technologies' share performance:

Dixon Technologies' share price has gone up by 5% in 2 weeks and gained almost 14% in the last 1 month. Over the last six months, the stock is up by 7%. It has increased 51% in the last 1 year and 296 % in 2 years. However, the shares re down by 8% so far in 2025. The highest price in the last 52 weeks was Rs 19,149.80, while the lowest was Rs 10,613.

Disclaimer
The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.