Dixon Technologies hits 16-month low; stock tanks 35% from September high

Dixon Technologies stock was down 3.3 per cent to ₹11,915, its lowest level since August 2024, on the BSE in Monday's intra-day trade.

Dixon Technologies (India) share price today

 

Share price of Dixon Technologies (India) (Dixon) hit a 16-month low of ₹11,915, declining 3.3 per cent on the BSE in Monday’s intra-day trade.

 

The stock price of the consumer electronics company fell below its previous low of ₹12,133.50 touched on December 11, 2025. It was quoting at its lowest level since August 2024. The Dixon Technologies stock has corrected 35 per cent from its September high of ₹18,471.50 on the BSE. It had hit a record high of ₹19,149.80 on December 17, 2024.

 

At 01:23 PM; Dixon Technologies stock was quoting 3 per cent lower at ₹11,936, as compared to 0.4 per cent decline in the BSE Sensex.  CATCH STOCK MAKET UPDATES TODAY LIVE 

 

Dixon overview, capex plan

 

The Group (viz. Dixon along with its subsidiaries/joint ventures or JVs) has an established track record as an electronic manufacturing services (EMS) player with presence in diversified product segments, leading position in its key product segments (like mobile phones, washing machines, refrigerators, LED television, telecom and networking products, etc) and established relationships with a reputed clientele.

 

In the next 6 to 9 months, investments would be made to expand the capacities and deepen the level of manufacturing. And Dixon’s management feels confident that the volume of smartphone camera modules can increase from 40 million units and revenues by ₹2,000 crore in large financial years to 190 to 200 million units per annum with the revenue closer to ₹6,000 crore to ₹7,000 crore and sub-10 per cent EBITDA margins in the next two to three years.

 

Dixon said the company has filed components electronics component manufacturing scheme (ECMS) applications for display modules, camera module enclosures, lithium-ion batteries, optical transceiver - SFP and also mechanical enclosures with investment commitment of approximately ₹3,000 crore over the next three years.  ALSO READ | Hind Copper, Hind Zinc zoom up to 67% in Dec; what next for these 2 metals?

ICRA’s rating rationale on Dixon

 

The Group reported a robust year-on-year revenue growth of 120 per cent in FY25 and 53 per cent in H1FY26. ICRA expects this momentum to sustain, supported by scale-up in new business segments and products (IT hardware, telecom and networking products, wearables, refrigerators, etc), healthy and consistent order inflows along with customer diversification. While ICRA expects the operating profit margin (OPM) to moderate to 3.5-3.7 per cent over the near to medium term due to the increasing share of prescriptive business, continued focus on backward integration and rise in the original design manufacturing (ODM) business should provide support to some extent.

 

The Group relies on several major customers, which makes its revenue vulnerable to their business decisions and performance. However, this risk is partly mitigated by the strong profiles of its largest clients – Motorola Mobility LLC, Ismartu Group, Longcheer, Bharti Airtel, Xiaomi Corporation, and Samsung Electronics – and by Dixon's growing customer base and status as a leading, cost-efficient EMS provider in India.

 

The Stable outlook on the long-term rating reflects ICRA’s expectations that Dixon will sustain its revenue growth even as profitability may moderate marginally due to changing business mix in the near to medium term. Further, the outlook underlines ICRA’s belief that the company will fund its incremental capex and investment requirements in a manner that allows it to maintain low leverage and strong debt protection metrics, the rating agency said in its rationale, while reaffirming short term ratings of Dixon.

 

Loss of major clients, significant slowdown in its key product segments, supply-chain disruption or higher-than-expected debt-funded capex/ investments that materially affect its leverage and coverage metrics may exert pressure on the ratings. Additionally, any asset-liability mismatch or deterioration in working capital intensity, which materially impacts liquidity position will be a credit negative, ICRA said.