DIXON Q2 FY27 Guidance vs Delivery (DIXON Management Mirror)

Sep'26 Qtr Operating Margins Contract to 2.7%, Meeting Mar'26 Qtr PLI Expiry Pressure Guidance

In Sep'26 Qtr, Dixon Technologies reported an EBITDA margin of 2.7% in its Quarterly Financial Results alongside an EBITDA of INR 597 crores, with management noting that overall margins were impacted by the expiration of the mobile PLI-1 scheme, elevated global memory prices, and the pass-through of higher input costs in the mobile and IT hardware businesses. This optical margin compression met the initial guidance issued in the Mar'26 Qtr concall, where management had warned that margin percentages would face slight near-term pressure in FY27 due to the PLI scheme expiration and higher product average selling prices. Looking ahead, management expects combined display and camera module vertical integration to expand consolidated margins by 80 to 100 bps over the next two years, with normalisation expected from FY28 as backward integration scales.