Dixon margin slips as other income drives Q1 profit surge
Revenue rose 21.13% YoY, but expenses grew faster and other income supplied 61.79% of pre-tax profit.
Filed 31 Jul 2026, 15:19 IST · Dixon Technologies (India) Ltd (DIXON)
Key takeaways
- Dixon's consolidated net profit rose 156.35% YoY to Rs 717.83 cr, but other income accounted for 61.79% of pre-tax profit.
- Revenue grew 21.13% YoY while expenses rose 22.11%, narrowing operating margin by 0.78 percentage points to 2.98%.
- Operating margin fell 0.91 percentage points QoQ to 2.98% after rising from 3.78% in Q2FY26 to 3.89% in Q4FY26.
Price around the results
Revenue growth did not carry through to operating profit
Consolidated revenue rose 21.13% YoY and 47.92% QoQ, but operating profit fell 3.99% YoY even as it increased 13.41% QoQ. The YoY mismatch reflects expenses growing 22.11%, faster than revenue. The QoQ increase was also cost-heavy, with expenses up 49.32% against 47.92% revenue growth.
Other income dominated the profit increase
Other income rose 6261.73% YoY and accounted for 61.79% of pre-tax profit, so the net-profit increase was not operating-led. The tax rate fell 6 percentage points YoY to 17.39%, adding to the reported profit growth. Interest expense fell 25.99% YoY, partly offsetting higher depreciation.
Margin reversal leaves Dixon below its peer set
Operating margin had risen from 3.78% in Q2FY26 to 3.88% in Q3FY26 and 3.89% in Q4FY26 before falling to 2.98% in Q1FY27. Among 49 Consumer Discretionary peers that had reported, Dixon's margin was 11.63 percentage points below the 14.61% median. That placed it sixth from the bottom of the peer group.
ESOP approval disclosed as the stock awaits its reaction
The investor presentation said the Nomination and Remuneration Committee approved 4,000 stock options for employees under the Dixon ESOP 2023. The stock's immediate post-result reaction is not yet available. After the previous eight results, it rose four times and fell four times, with a median absolute move of 5.76%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹15,548 cr | ₹10,511 cr | +47.92% | +21.13% |
| Other income | ₹537 cr | ₹90 cr | +496.46% | +6261.73% |
| Expenses | ₹15,085 cr | ₹10,102 cr | +49.32% | +22.11% |
| Operating profit | ₹463 cr | ₹408 cr | +13.41% | -3.99% |
| Operating margin (%) | 2.98% | 3.89% | — | — |
| Interest | ₹24 cr | ₹24 cr | +1.94% | -25.99% |
| Depreciation | ₹107 cr | ₹105 cr | +1.89% | +15.37% |
| Profit before tax | ₹869 cr | ₹370 cr | +135.01% | +137.74% |
| Tax | ₹151 cr | ₹72 cr | +110.54% | +76.78% |
| Net profit | ₹718 cr | ₹298 cr | +140.91% | +156.35% |
| EPS (₹) | ₹118.00 | ₹49.22 | +139.74% | +153.93% |
Operating margin of 2.98% compares with a Consumer Discretionary sector median of 14.61% across 49 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New initiatives
- The Nomination and Remuneration Committee approved 4,000 stock options for employees under the Dixon ESOP 2023.
What to watch
- Whether operating margin recovers from 2.98% after the QoQ decline of 0.91 percentage points.
- Whether expenses grow slower than revenue after rising 49.32% QoQ against 47.92% revenue growth.
- Whether other income remains close to 61.79% of pre-tax profit.