Dixon Technologies Q2 FY27 Results Analysis: Revenue Jumps 47%, Margin Compresses 76 bps

Cofacto Research Published October 30, 2026 3 min read

Neutral

Dixon Technologies (India) Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 21,793.64 Cr (+46.71% YoY) and PAT growth of -44.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 30, 2026
Revenue (Q2)	Rs. 21,793.64 Cr (+46.71% YoY)
PAT (Q2)	Rs. 410.87 Cr (-44.90% YoY)
EBITDA margin	2.11% (-76 bps YoY)
EPS (Q2)	Rs. 67.44 (-45.44% YoY)

Quarter Snapshot

Revenue grew 46.71% YoY to Rs.21,793.64 crore with normalized PAT up 18.16% YoY once prior-year one-off gains are stripped, but the clean operating margin of 2.11% is down 76 bps YoY. H1 operating cash flow was negative Rs.280.02 crore and the Rs.1,110.06 crore PLI receivable remains unresolved with auditor emphasis of matter. No quantified management guidance exists in the filing, so no guidance beat or miss can be established.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue	"revenue looks ahead YoY if the guided volume ramp held" — share gains against a −26% handset market	Rs.21,793.64 crore, +46.71% YoY, +40.17% QoQ	Played out
Margins	"margins likely flat to compressing… thin conversion margin, PLI/other-income dependence persisting"	Ex-OI margin 2.11% vs 2.14% Q1, 2.87% prior-year Q2	Played out
PLI receivable	"Rs.1,110.06 Cr outstanding pending formal determination — the key cash-conversion overhang"	Note 6 confirms receivable still outstanding; amount booked in the quarter not disclosed; H1 CFO −Rs.280.02 crore	Played out
Mobile volumes vs 9–9.2m guided	Volume test of share gains	Not disclosed in the filing — open for the call	Not observable
Memory-cost pass-through	"how much of the chip-price spike flowed into customer-specified BOM pricing"	Materials ratio improved to 94.89% from 96.89% QoQ but no BOM-mix disclosure	Partially observable
Vivo JV / display ramp from Q3	"Q2 remains a pre-JV quarter"	New 51% subsidiary incorporated; no JV revenue detail — consistent	Not observable
US tariff overhang	"the tariff overhang has so far not dented the export lane"	Not addressed in the filing — remains open for the call	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
~32m phones FY27	Q1 FY27 earnings call (per pre-call note)	Not disclosed	Too Early
Margin pressure to continue through FY27	Q1 FY27 management commentary (per pre-call note)	Operating EBITDA margin ex-other income 2.11% vs 2.87% prior-year Q2, 2.14% Q1	Confirmed as a directional claim

Key Investment Insights

Key Positives

Consolidated revenue grew 46.71% YoY and 40.17% QoQ to Rs.21,793.64 crore; H1 revenue of Rs.37,341.30 crore is up 34.85% YoY
Normalized PAT grew 18.16% YoY to Rs.410.87 crore after stripping Rs.492.92 crore of prior-year investment/slump-sale gains
Operating EBITDA ex-other income grew 38.78% QoQ and 7.99% YoY to Rs.460.81 crore
Materials ratio improved to 94.89% of revenue from 96.89% in Q1 FY27
Employee costs grew only 9.55% YoY and other expenses declined 1.10% YoY against 46.71% revenue growth
Finance costs fell 32.33% YoY to Rs.25.95 crore; net debt of Rs.167.52 crore is modest against Rs.6,728.43 crore of equity
Inventory days of 29.2 are essentially unchanged from FY26's 28.7, indicating the inventory build tracks the revenue run-rate

Risk Factors

H1 operating cash flow was negative Rs.280.02 crore (vs +Rs.880.84 crore in H1 FY26) with FCF of −Rs.986.94 crore
Rs.1,110.06 crore PLI receivable remains outstanding pending formal determination, flagged in the auditors' emphasis-of-matter paragraph
Operating EBITDA margin ex-other income compressed 76 bps YoY to 2.11% from 2.87%
Effective tax rate rose to 22.82% from 17.39% in Q1 and 19.26% in the prior-year quarter
Reported consolidated PAT fell 44.90% YoY and standalone PAT fell 74.20% YoY
NCI share of Q2 PAT rose to 16.36% from 10.15% a year ago, reducing profit accrual to owners