Q2 2026 Dixon Technologies (India) Ltd Earnings Call Transcript
Key Points
- Dixon Technologies (India) Ltd (BOM:540699) reported a 29% year-on-year growth in consolidated adjusted revenues for Q2 FY26, reaching INR14,858 crores.
- The company achieved a 34% increase in consolidated adjusted EBITDA, amounting to INR564 crores, and a 37% rise in consolidated adjusted PAT, totaling INR323 crores.
- Dixon Technologies maintained a strong balance sheet with a net debt position of INR203 crores and a negative working capital cycle of 6 days.
- The company is expanding its joint ventures and manufacturing capacities, including a JV with HKC for display modules and a 51% stake acquisition in Q-Tech India for camera and fingerprint modules.
- Dixon Technologies is actively pursuing export opportunities, particularly in Africa and Latin America, and has secured significant orders in the telecom sector, including a deal with a large US telecom customer.
- The reduction in GST rates led to a significant postponement of purchases, affecting Q2 sales, particularly in TVs, refrigerators, and washing machines.
- The introduction of new energy efficiency norms in India resulted in subdued growth for the refrigerator segment during the quarter.
- The company faces potential margin pressure in FY27 due to the expiration of the PLI scheme and the time required for integration benefits from new projects.
- There is a risk of reduced profitability from the Longcheer JV as profits will now be shared, despite potential operational efficiencies.
- Dixon Technologies' revenue growth rate has slowed compared to previous quarters, with a 28% increase in Q2 FY26, down from an average of 100% year-on-year growth in prior periods.
Ladies and gentlemen, good day, and welcome to the Dixon Technologies Q2 FY26 earnings call hosted by DAM Capital Advisors. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Bhoomika Nair from DAM Capital Advisors. Thank you, and over to you, Ma'am.
Thank you, and good evening to everyone. Welcome to the Dixon Technologies Q2 FY26 earnings call. The management is being represented today by Mr. Atul Lall, Vice Chairman and Managing Director; and Mr. Saurabh Gupta, Chief Financial Officer.
At this point, I'll hand over the floor to Mr. Lall for his initial remarks, post which, we'll open up the floor for Q&A. Thank you, and over to you, sir.
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Thanks very much, Bhoomika. Good evening, everyone. This is Atul Lall, and joining me today is our CFO
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