Dixon net up 67%, revenue up 3% in Q3 as memory prices drag demand

Chennai: Dixon Technologies' net profit rose 67% on a yearly basis, even as the price rise of memory components and demand moderation pose short-term risks. In the Dec quarter, its consolidated net profit stood at Rs 287 crore compared to Rs 172 crore last year. Its revenue increased 3% to Rs 10,803 crore and EBITDA (earnings before interest, taxes, depreciation and amortisation) grew 37% YoY basis to Rs 546 crore.Dixon's revenue from mobile and other electronic manufacturing services divisions at Rs 9,750 crore and operating profit from the segment stood at Rs 350 crore for the quarter. Dixon managing director Atul Lall said the electronics industry is experiencing challenges from commodity inflation and a sharp increase in memory prices, driven by AI demand. "The smartphone market in Q3 fell by 7% on a YoY basis. The decline reflected post-festival slowdown, stressed by elevated inventory for brands, depreciating rupee, softening mass market affordability and moderation in demand as supply constraints and rising cost of memory chips remain," he said in the earnings call.
"Conventional DRAM prices have already risen sharply over the last two quarters, with further increases expected in mid-2026. For smartphones and PCs, memory has transitioned from being a relatively small line item to one of the most sensitive parts of the bill of materials, especially for lower price devices. The world's top suppliers are shifting their capacity towards AI applications, resulting in a supply squeeze," he said, adding that the company's returns have headroom for investing in capacity addition and component making.Dixon's aims to build scale, improving operational efficiency, strengthening and backward integration and diversifying the core electronics business to navigate the environment, he added.The company also plans to increase smartphone camera module capacity from 40 million units to 190 million to 200 million units.