DIXON Q1 performance beat on all fronts. Revenue/EBITDA were 21%/23% ahead of our estimates. Revenue grew 95% YoY/25% QoQ, led by a strong 121% YoY growth in the Mobile & EMS division. The non mobile division saw a revenue decline of 15% YoY/25 QoQ. EBITDA margin was flat YoY (-50bps QoQ) to 3.8% (in line with estimates), absolute EBITDA grew 95% YoY/9% QoQ
We believe DIXON is well-placed to benefit from the rising outsourcing of electronics manufacturing. Going ahead, growth will be driven by new client additions via JVs and expanded capabilities in electronic components. We model 35–40% revenue/EBITDA CAGR over FY25–27E and ascribe 70x on FY27E EPS and arrive at March FY26 TP of Rs 19,100 and we assume coverage with BUY
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