Dixon Technologies jumps 5% despite mixed brokerage views on Q3 show

Emkay Global described Dixon's Q3 as 'soft', with revenue growth limited to 2% Y-o-Y, largely due to a 5% annual decline and a sharp 30% sequential fall in the mobile phone business.

Dixon Technologies share price today: Dixon Technologies shares rallied sharply on Friday, bucking weak broader markets, even as brokerages remained divided on the contract manufacturer’s near- to medium-term outlook following a subdued December quarter (Q3) performance. 

The stock surged as much as 4.90 per cent to an intraday high of ₹10,846.35 per share on the BSE. Around 10:10 am, Dixon Technologies share price was trading 4.46 per cent higher at ₹10,800, outperforming the benchmark Sensex, which was down 0.52 per cent at 82,136.72. 

The rally came despite the company reporting a relatively soft third quarter, with analysts flagging pressures from elevated memory prices, slower smartphone volumes and uncertainty around key joint venture approvals.  FOLLOW LATEST STOCK MARKET UPDATES TODAY LIVE

 

Soft quarter, but margin resilience offers comfort

Emkay Global Financial Services described Dixon’s Q3 as ‘soft’, with revenue growth limited to 2 per cent year-on-year (Y-o-Y), largely due to a 5 per cent annual decline and a sharp 30 per cent sequential fall in the mobile phone business. The brokerage attributed the weakness to a surge in global memory prices, which weighed on smartphone demand.

 

However, Emkay highlighted that operating profitability held up well, with Ebitda margins remaining stable quarter-on-quarter (Q-o-Q) at 3.9 per cent, supported by controlled operating expenses and a favourable product mix. Management has guided for smartphone volumes of 7–7.5 million units in the March quarter, translating to about 34-35 million units for FY26, lower than its earlier guidance of 40-45 million units.

 

Despite this reset, Emkay said absolute volumes continue to rise, aided by exports, even as Dixon loses some optical share in Motorola. It added that the company is confident of receiving Production-Linked Incentive (PN3) approval for its Vivo joint venture, while the HKC JV is progressing independently, with mass production expected to begin from Q2 FY27. Emkay retained its ‘Buy’ rating with a target price of ₹15,200, arguing that the market is overly pessimistic and undervaluing Dixon’s structural growth opportunities.  ALSO READ | MTAR Technologies shares jump 10% to 52-week high after strong Q3 results

Divided outlooks across the Street

 

Motilal Oswal Financial Services also retained a ‘Buy’ rating, though it flagged ‘uncertain times’ ahead. The brokerage said Dixon’s Q3 performance was in line with expectations but noted that higher memory prices and channel inventory issues continue to hurt smartphone demand. These pressures, it said, could persist for a few more quarters, weighing on volumes and margins.

 

While Motilal Oswal analysts acknowledged progress in backward integration and approvals under the electronics components manufacturing scheme for camera modules and electro transceivers, it cut its FY27 and FY28 earnings estimates by 23 per cent and 9 per cent, respectively. It revised its target price to ₹16,700, based on a two-year forward discounted cash flow model, noting that a nearly 46 per cent correction from the stock’s peak already factors in many of the risks.

 

Contrastingly, global brokerages remained cautious. Goldman Sachs reportedly reiterated its ‘Sell’ rating, even as it marginally raised its target price to ₹10,000, according to reports. It flagged flat mobile and EMS volumes, muted consumer electronics demand due to inventory overhang and regulatory changes, and warned that the earnings downgrade cycle may continue. While value addition initiatives are positive, Goldman said customer stickiness remains uncertain.  ALSO READ | Canara Bank shares extend slide after Q3 results; Antique downgrades stock 

Morgan Stanley maintained an ‘Underweight’ rating with an unchanged target price of ₹8,724. The brokerage reportedly said the operational miss was driven by weakness in mobile and EMS segments, while the transfer of the lighting division affected comparability. Although margins were broadly in line and profit after tax beat estimates due to lower tax and minority interest, Morgan Stanley said subsidiary performance remains tepid and structural growth concerns persist.

 

Notably, the stock has corrected 78.66 per cent from its 52-week high hit on September 25, 2025, BSE data showed.

 

Even so, Friday’s sharp rally suggests investors are betting that near-term challenges are already priced in, and that Dixon’s longer-term manufacturing ambitions could yet revive sentiment.

   

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