The brokerage wrote in its note that Dixon faces huge client concentration risk, as Motorola’s domestic volumes, its largest client, have fallen sharply.
In FY25, nearly 80% of Dixon’s mobile phone revenue came from Motorola, which dropped to 60% by Q2FY26, largely due to lower domestic shipments and increasing competition from Apple and other Android brands.
According to the brokerage, Motorola outsourced 18% fewer domestic volumes to Dixon year-on-year in Q2FY26, as the company increased outsourcing to rival manufacturer Karbon.Philip Capital also said that Dixon is likely to miss its Q1FY26 guidance of 15% quarter-on-quarter value growth in mobile phones, owing to both volume declines from Motorola and loss of wallet share to Longcheer and Xiaomi.
The brokerage expects a double-digit cut in consensus FY26 profit-after-tax (PAT) estimates, currently pegged at around ₹1,200 crore, in the coming quarters.
Of the 36 analysts tracking Dixon Technologies, 27 have a ‘Buy’ rating, six recommend ‘Hold’, and three advise ‘Sell’.
Dixon Technologies shares were trading 4.05% lower at ₹16,499. The stock has fallen around 8% year-to-date.
