Dixon share surges 11% on Q2 revenue jump and Vivo JV clearance, then ends 2025 down 33%

Q2 revenue jump sends Dixon share up 11%

Dixon Technologies’ share surged as much as 11.26% after the company reported a 47% jump in revenue for the second quarter, India Infoline reported. Depending on the count, the post-results move was put at 8.5% in an intraday surge cited by Moneycontrol. The rally rode two pieces of news: the quarterly numbers and guidance, and the government’s clearance of Dixon’s joint venture with Chinese smartphone maker Vivo Mobile, which had already sent the stock up 10% in early trade on the Friday it came through, the Mint reported, opening the way for the companies to proceed.

Brokerages were quick to credit the smartphone end of the business. Reporting the surge, Moneycontrol said brokerages were bullish on the Vivo JV and on smartphone growth even as margin concerns were flagged alongside the optimism.

That was not the first sharp move of the year. After a strong set of Q1 numbers, shares rose as much as 3% to ₹16,540 on July 23, News18 reported. And on at least one occasion the stock climbed nearly 4% on a day when the benchmark indices traded lower, tracking a muted trend in global equities and an uptick in US inflation, India TV reported.

Brokerages raise targets

Street optimism translated into specific price targets. After the Q2 results and guidance, Motilal Oswal reiterated its Buy rating and raised its target price to ₹15,900 a share, implying an upside of 44.5%, CNBC TV18 reported. UBS maintained a Buy rating with a target of ₹15,600, indicating an upside of 41.8%. CLSA and JPMorgan also carried targets that fed into the 11% rally after the quarter numbers, Business Today reported. The gap between the newer calls and older ones shows how far analyst numbers have moved: ICICI Securities retained a Buy rating with a target of ₹4,270 a share, Zee Business reported.

Dixon is an electronics manufacturing services provider to multinational and domestic companies in India, and is counted among the biggest beneficiaries of government support for electronics manufacturing in India, Zee Business noted.

Margin pressure and EMS slowdown

The same stretch of news carried warnings about what could hold the stock back. Business Standard pointed to near-term margin headwinds as input costs rise, the flip side of the smartphone growth story brokerages were lauding.

The market has already slapped the stock for weak segments. Shares jumped off a cliff by over 13% on the NSE, 13.41% or ₹2,355.40, to trade around ₹15,204.05 a share after the EMS division’s revenue declined quarter-on-quarter, The Free Press Journal reported. In May, the stock crashed nearly 8% despite the company posting strong Q4 results, India TV reported, a move that showed headline earnings strength alone has not been enough to hold buyers.

Year-end slide erases the gains

The Q2 euphoria did not survive the year. Shares extended their losing streak to a sixth straight session on Monday, December 29, falling another 4% to ₹11,821 apiece, a 16-month low, and closing 2025 down 33%, the Mint reported. A stock that had touched ₹16,540 in late July ended the year nearly ₹5,000 below that, with both the margin warnings flagged at the time of the rally and the EMS division’s quarter-on-quarter revenue decline unresolved.

PLI receivable and board change

Two disclosures sit behind the share-price drama. The company disclosed a notable receivable of ₹1,110.06 crore tied to the government’s PLI scheme, which is still pending. In the same announcement, Dixon Technologies appointed Prithvi Vachani, the chairman’s son, as executive director, the Economic Times reported. Whether the PLI amount gets paid, and how the EMS division’s revenue holds up against rising input costs, are the open items for a stock whose 2025 ended around a third lower.