Dixon profit drops 35.91% as other income falls, shares jump 9.73%
Revenue rose 2.12% year on year, but faster expense growth cut operating margin to 3.89%; other income still contributed 24.35% of pre-tax profit.
Filed 12 May 2026, 15:54 IST · after market close · Dixon Technologies (India) Ltd (DIXON)
Key takeaways
- Consolidated net profit fell 35.91% year on year to Rs 297.97 cr, mainly as other income declined 66.08%.
- Expenses grew 2.56% against revenue growth of 2.12%, narrowing operating margin by 0.41 percentage points to 3.89%.
- The stock rose 9.73% after the results, well above its eight-result median absolute move of 3.74%.
Price around the results
Profit fell despite modest revenue growth
Dixon's consolidated revenue increased 2.12% year on year, but net profit declined 35.91% to Rs 297.97 cr. The main drag below operating profit was other income, which fell 66.08% to Rs 90.02 cr; it still accounted for 24.35% of pre-tax profit. Interest expense fell 48.85%, but that was not enough to offset the lower other income and higher depreciation.
Costs outpaced sales and kept margins below last year
Expenses grew 2.56% year on year against 2.12% revenue growth, narrowing operating margin by 0.41 percentage points. Sequentially, revenue and expenses both declined 1.51%, so operating margin edged up 0.01 percentage points. The tax rate was broadly unchanged year on year, rising 0.14 percentage points, while falling 2.72 percentage points sequentially helped limit the quarter-on-quarter net-profit decline.
Margin has recovered from Q1 but remains low versus peers
Operating margin improved from 3.76% in Q1FY26 to 3.89% in Q4FY26, after reaching 3.88% in Q3FY26, but it remains below the 4.30% reported in Q4FY25. Among 93 Consumer Discretionary peers that reported the same quarter, Dixon's margin was 10.92 percentage points below the 14.81% median and ranked ninth from the bottom.
Shares moved well beyond their usual post-result range
The stock gained 9.73% on the first reaction day, with volume at 4.08 times its reference level, and was up 8.47% after five sessions. That move was unusually large relative to the company's recent results: across eight observations, the median absolute move was 3.74%, with four rises and four falls.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹10,511 cr | ₹10,672 cr | -1.51% | +2.12% |
| Other income | ₹90 cr | ₹139 cr | -35.30% | -66.08% |
| Expenses | ₹10,102 cr | ₹10,257 cr | -1.51% | +2.56% |
| Operating profit | ₹408 cr | ₹414 cr | -1.47% | -7.77% |
| Operating margin (%) | 3.89% | 3.88% | — | — |
| Interest | ₹24 cr | ₹43 cr | -44.81% | -48.85% |
| Depreciation | ₹105 cr | ₹99 cr | +6.00% | +22.19% |
| Profit before tax | ₹370 cr | ₹412 cr | -10.18% | -35.81% |
| Tax | ₹72 cr | ₹91 cr | -21.22% | -35.37% |
| Net profit | ₹298 cr | ₹321 cr | -7.05% | -35.91% |
| EPS (₹) | ₹49.22 | ₹53.06 | -7.24% | -36.56% |
Operating margin of 3.89% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.73% | +9.58% |
| Next session | +9.52% | — |
| 5 sessions | +8.47% | +7.28% |
| 15 sessions | +13.32% | — |
| 30 sessions | +18.49% | — |
Volume on the results session was 4.08× its 20-day average.
What to watch
- Whether operating margin holds above 3.89% after the recovery from 3.76% in Q1FY26.
- Whether expenses continue to grow faster than revenue after the year-on-year gap of 2.56% versus 2.12%.
- Whether other income remains a material profit contributor after accounting for 24.35% of Q4FY26 pre-tax profit.