Dixon Technologies makes electronics for other companies' brands: smartphones above all, plus laptops, televisions, refrigerators, washing machines and lighting. The phone and other contract-manufacturing division brought in ₹14,179 crore of the ₹15,548 crore of sales in the June 2026 quarter, 91%. The model is huge volume on a very thin slice: operating margin was 3.83% in FY26. What makes it work is how little money it ties up. Suppliers are paid after customers pay, working capital ran at minus five days in the June quarter, and Dixon's own adjusted return on capital was 34.1% over the year to June. The weak point is that the slice is set by contracts and government incentives, not by Dixon. When the first phone incentive scheme ended in March 2026, the phone division's margin fell from 3.4% to 2.6%.
Only partly, because Dixon reports these measures differently from most contract manufacturers. Order book: there is no rupee figure. Management gives phone volumes instead, 9 million to 9.2 million units booked for the September quarter against 7.5 million made in June. Customer concentration: high, and rising. Three customers made up about 62% of FY26 revenue, up from 60% the year before. Own designs: the presentation reports them only for televisions, refrigerators and washing machines, which together are under a tenth of sales. Plant utilisation and the share of finished assemblies are not disclosed.
No meaningful debt, and in March it held more cash than it owed. Borrowings were ₹468 crore at 31 March 2026 against ₹4,677 crore of shareholders' funds, with ₹1,241 crore of cash and short-term investments. The debt-to-equity of 0.21 shown on this page also counts the leases on its factories. By 30 June the cushion had thinned: cash fell to ₹805 crore and borrowings rose to ₹579 crore, after ₹812 crore went into stock and money owed by customers in a single quarter. Management called that temporary. The thing to watch here is working capital, not debt.
Sales are growing fast, and FY26's profit growth is flattered by investment gains. Revenue rose 25.77% to ₹48,873 crore, and operating margin was 3.83% against 3.90%. Reported profit rose 31.32% to ₹1,439 crore, but the annual report shows the year's ₹2,071 crore of pre-tax profit included a ₹671 crore gain on the disposal and fair value of investments; FY25 carried its own ₹460 crore one-off gain. The June 2026 quarter showed the same pattern: revenue up 21%, while profit after minority interest, excluding a ₹519 crore gain on its Aditya Infotech stake, fell 3% to ₹218 crore, as Dixon reported it.
Revenue has compounded at 49.94% a year for five years, from ₹6,448 crore in FY21 to ₹48,873 crore in FY26, as phone assembly came to dominate the business. FY26 alone added 25.77%. Reported profit grew faster, 31.32%, but FY26 profit includes a ₹671 crore pre-tax gain on investments and FY25 a ₹460 crore one-off gain, so the two years do not compare cleanly. Over five years profit has grown 55.19% a year. In the June 2026 quarter revenue grew 21% while profit after minority interest, excluding a ₹519 crore gain on investments, slipped 3% to ₹218 crore, as the first phone incentive scheme lapsed.
Mostly built, with partners brought in more often than companies bought. Two stakes were purchased: 50.1% of Ismartu India, a phone maker, for ₹322 crore, which became a subsidiary in August 2024, and 51% of Kunshan Q Tech India, which makes camera and fingerprint modules. FY26 is Ismartu's first full year inside Dixon, so part of FY26's growth is that stake rather than new business. Much of the rest runs through joint ventures in which Dixon holds a majority: laptops with Inventec (60%) and telecom equipment with Bharti's Beetel (51%). A phone joint venture with Vivo received government approval in July 2026 and has not yet closed. In FY26 Dixon also moved its lighting business into a joint venture, Lightanium Technologies, for ₹140 crore.
Steady over the year, slipping now. Operating margin was 3.83% in FY26 against 3.90% in FY25, and it has stayed between 3.59% and 5.18% for ten years, because Dixon's contracts pass most cost changes through to customers. The June 2026 quarter broke lower: 3.0% against 3.8% a year earlier. Management gave two reasons on the call: the first phone incentive scheme expired in March 2026, and higher component prices raised selling prices without raising profit. The phone division's margin fell from 3.4% to 2.6%, washing machines from 11.5% to 8.4%, while televisions and refrigerators held near 6%.
Good, though the headline is flattered. Return on capital for FY26 is 47.29%, down from 59.04% in FY25, but both years' profits include large one-off investment gains: ₹671 crore in FY26 and ₹460 crore in FY25, per the annual report. Dixon's own adjusted measure, which leaves such gains out, was 44.8% for FY26 and 34.1% over the year to June 2026. Return on equity was 30.76%. Even the company's adjusted figure is well above 20%, because so little of its capital is tied up in stock and money owed by customers.
Yes over the year, not in the latest quarter. In FY26 operations produced ₹1,782 crore of cash against ₹1,439 crore of reported profit, and over three years cash came to 1.21 times profit, even though that profit includes investment gains that operations did not earn. Customers paid in 48.77 days in FY26 and suppliers were paid in 93, so working capital ran slightly negative. The June 2026 quarter reversed it: ₹812 crore went into working capital and operating cash flow was minus ₹341 crore. Management called it temporary on the call; the September quarter will show whether it was.
Run by two long-serving executives. Sunil Vachani is executive chairman, and Atul B. Lall, who has led the business since its foundation, is vice chairman and managing director. Saurabh Gupta, the chief financial officer, also sits on the board. Four of the eight directors are independent: Keng Tsung Kuo, Rakesh Mohan, Arun Seth and Geeta Mathur. Pay is where the numbers stand out. Mr Lall received ₹81.89 crore in FY26, of which ₹74.86 crore was the value of stock options he exercised, while Mr Vachani received ₹7.22 crore. Mr Lall owns 3.20% of the company outright, more than Mr Vachani's personal 2.03%, which ties the managing director's fortune closely to the share price.
No qualification, but two items to know. The auditor, S N Dhawan & Co LLP, signed off the FY26 accounts without modification and drew attention to one matter: a subsidiary, Padget Electronics, booked ₹1,110 crore of phone production incentive that the government's agency had not yet confirmed or paid by March 2026, relying on an independent legal opinion about its eligibility. Separately, disputed customs, excise and service tax claims rose to ₹398 crore from ₹87 crore, stemming from classification questions raised after revenue intelligence searches in 2021 and 2024. Disputed income tax was ₹94 crore. The company reports no fines or penalties for the year.
Its edge is scale and how little capital it needs, not technology. Dixon is the largest of India's listed contract manufacturers by sales, building phones, laptops, televisions and appliances for global brands, and it is now adding the parts that go inside: camera modules through Q Tech, a display plant where machinery is being installed, and optical parts for telecom with Gemtek. Its listed Indian rivals include Kaynes Technology, Amber Enterprises, PG Electroplast, Syrma SGS and Cyient DLM; in phones it also competes with large unlisted global assemblers. The edge shows in money rather than margin: working capital near zero days lets it grow without raising equity, where Kaynes, for comparison, ran at 163 days.
Set against Kaynes Technology, Dixon is built the other way round. It is far larger by FY26 sales, ₹48,873 crore against ₹3,626 crore, and grew 25.77% against Kaynes's 33.24%. Kaynes earns far more on each sale, a 15.83% operating margin against Dixon's 3.83%, but ties up far more money to do it, so Dixon earns more on its capital: 47.29% against Kaynes's 13.21%, though Dixon's figure includes investment gains and its own adjusted measure is 34.1%. Both carry little debt, 0.21 and 0.19 times equity. On 1 October 2026 Kaynes traded at 62.58 times FY26 earnings and Dixon at 53.67, with Dixon's earnings including a ₹671 crore pre-tax gain on investments.
The tailwinds are policy and exports. A second phone incentive scheme runs from April 2026 and, as management understands it, pays on production above FY26 levels; separate component schemes back Dixon's camera-module and display plants, and camera capacity is to rise from 70 million to 180–190 million units a year over 15 to 18 months. Management expects one anchor customer to move its export base to India, adding 15 to 20 million phones over a couple of years, and the Vivo joint venture should add volume once it closes. The risks are concentration and timing. Three customers were 62% of FY26 sales. Industry phone volumes fell 10–12% in the June quarter on memory and component prices. ₹1,110 crore of income from the first scheme still awaits the government's confirmation, and analysts on the call asked about media reports that the Vivo deal needs Chinese approval.
Long-term growth, built on policy, with cycles inside it. Dixon's annual report cites estimates that India's contract electronics market was worth US$40–45 billion in 2024–25 and could pass US$150 billion by 2029–30, growth of more than 25% a year. Phones have gone from India's 153rd-largest export in 2014–15 to its largest in 2025–26, and India is now the world's second-largest phone maker. The cycles come from consumer demand and component prices: in the June 2026 quarter smartphone shipments fell 10–12% even as their total value rose. Because margins are this thin, the end of an incentive scheme shows up quickly, as Dixon's June quarter showed.
Only if the growth continues for years. The share trades at 53.67 times FY26 earnings, but those earnings include a ₹671 crore pre-tax gain on investments, so the multiple looks lower than the business alone would support. In the June 2026 quarter, profit excluding a ₹519 crore gain was ₹218 crore. At a market value of ₹77,216 crore on 1 October 2026, the market is paying for the phone volumes, components and exports still to come, not for what Dixon earns today. The share is 27.2% below its high.
Expensive, more so than the headline says. At ₹12,700 on 1 October 2026 the share traded at 53.67 times FY26 earnings of ₹236.62 a share, 16.51 times book value and 1.58 times sales, valuing the company at ₹77,216 crore. Those earnings include a ₹671 crore pre-tax gain on investments, so the P/E flatters the business. The PEG of 0.69 rests on the same earnings and on three-year profit growth of 77.9% a year. Kaynes Technology traded at 62.58 times FY26 earnings on the same date.
Broadly holding, with foreign funds selling and Indian institutions buying. Over the four quarters to June 2026, foreign institutions cut their stake from 20.55% to 17.87%, while domestic institutions rose from 26.69% to 28.39%. Mutual funds within that slipped from 21.12% to 20.05%, so the domestic increase came from insurers and pension funds: SBI Life (1.89%) and the NPS trust's UTI scheme (2.24%) have both moved above 1% since March 2025. Institutions together hold 46.26%, down from 47.24%.
A broad set of large Indian funds, none dominant. The biggest fund holding in June 2026 was Nippon India Small Cap at 3.70%, followed by Kotak Focused (2.85%), the NPS trust's UTI scheme (2.24%), SBI Life (1.89%), the Motilal Oswal Nifty Midcap 100 ETF (1.85%), HDFC Multi Cap (1.72%), UTI Flexi Cap (1.52%), Mirae Asset Large & Midcap (1.25%) and HDFC Life (1.17%). Among individuals, Kamla Vachani holds 6.19% outside the promoter group and Atul B. Lall 3.20%. Since March 2025, LIC, HSBC Midcap and Axis ELSS Tax Saver have dropped below 1%.
A token dividend and very little dilution. The board has recommended ₹10 a share for FY26, a payout of 4.23% of profit, so nearly all earnings stay in the business. There has been no buyback and no share sale to raise money. The share count has risen 1% in the past year as employees exercise stock options, from 6.02 crore shares in March 2025 to 6.11 crore in June 2026.
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