Q2 results impact: Dixon Tech extends fall to third day after lowering volume guidance

About this update from Dixon Technologies (india) Ltd.

The shares of Dixon Technologies extended losses to 7 percent over three sessions after the company released its results for the second quarter of the financial year 2026. The stock dropped nearly 4 percent to trade at Rs 15,540 apiece on October 23.The company had released its Q2 FY26 results in the post market hours of October 17.Dixon Tech Q2 Results:Dixon Tech on October 17 reported a net profit of Rs 670 crore for the July-September quarter of the financial year 2026. This marks a 72 percent on-year increase from the Rs 389.85 crore net profit reported in the corresponding quarter of the previous financial year.The firm's revenue from operations meanwhile rose around 29 percent year-on-year to Rs 14,855 crore in Q2 FY26, from Rs 11,534 crore in Q2 FY25. EBITDA increased 34 percent YoY to Rs 564 crore, while EBITDA margin improved to 3.8 percent.CLSA downgrades Dixon Tech shares:CLSA downgraded Dixon Technologies to 'Outperform' from its earlier 'Buy' rating, and cut its target price for the stock to Rs 18,800 per share. CLSA cautioned that the discontinuation of the Production Linked Incentive (PLI) scheme could put pressure on the company's margins in early FY27, before the benefits of backward integration begin to flow through, CNBC-TV18 reported.Yes Securities reiterates 'Reduce' call on Dixon Tech:Yes Securities kept a 'Reduce' rating on the stock, with a revised target price of Rs 15,556 per share. This implies a downside potential of more than 3.5 percent from the stock’s previous closing price. The domestic brokerage noted that the firm’s revenue missed estimate by 3 percent, while consumer electronics and home appliances businesses were weaker because of temporary demand delays after the GST rate cut in August and early monsoon impact.“We continue to value DIXON at 55x as company return ratios continue to remain healthy. We believe there could be risk to revenue in other products (Ex of mobile) as demand environment continues to be subdued,” it added.Here's what Phillip Capital said:Phillip Capital noted that the firm has cuts its FY27 mobile phone volume guidance to 55-60 million units from 60–65 million units. Mobile phone and electronic manufacturing services segment accounted for 90 percent of its revenue.The brokerage said that the company missed Street's PAT estimates by 13 percent due to increase in minority interest in its Ismartu and...

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