Dixon Technologies (DIXON) Q2 24/25 earnings summary

Executive summary

• Consolidated Q2 FY25 revenue reached ₹11,528 crore, up 133% year-over-year, with EBITDA at ₹420 crore (up 110%) and PAT at ₹412 crore (up 265%), driven by strong performance across segments.

• H1 FY25 revenue was ₹18,116 crore, up 120% year-over-year, with EBITDA at ₹676 crore (up 102%) and PAT at ₹551 crore (up 204%).

• Adjusted PAT for Q2 FY25, excluding a fair value gain of ₹210 crore, was ₹236 crore, up 109% year-over-year.

• Exceptional gain from fair value adjustment of Aditya Infotech stake contributed ₹210 crore to Q2 and H1 profits.

• Robust order book and significant customer additions supported by capacity expansions and acquisitions, including iSmartU.

Financial highlights

• Mobile phones and EMS revenue was ₹9,444 crore in Q2 FY25, up 235% year-over-year, contributing 82% of total revenue and 73% of operating profit.

• Consumer electronics revenue was ₹1,413 crore, with operating profit of ₹49 crore and margin of 3.7%.

• Home appliances revenue was ₹444 crore, up 22% year-over-year, with operating profit of ₹49 crore (up 17%).

• Lighting revenue was ₹233 crore, with operating profit of ₹17 crore, both growing quarter-on-quarter.

• Standalone net profit for Q2 FY25 was ₹25,713 lakh, up from ₹10,496 lakh in Q2 FY24.

Outlook and guidance

• Continued strong revenue growth expected, driven by demand, new customer additions, and Make in India initiatives.

• Mobile and IT hardware businesses anticipated to drive growth for the next two years, with high-margin component business contributing thereafter.

• Margin expansion expected in 15-18 months as backward integration matures.

• Management focus on expanding high-margin segments and operational efficiency.

• Company expanding subsidiary base and completed a significant acquisition, indicating ongoing growth and diversification.