An analysis dated September 27, 2026, examines why Dixon Technologies trades at a premium valuation despite thin operating margins. Its P/E ratio is about 44x, while operating margins are around 3-4%. High asset turnover and strong returns on capital help support the valuation. Return on capital employed was 34.1% in Q1 FY27.
Dixon is expanding into higher-value manufacturing beyond smartphone assembly. It has a joint venture with Inventec to manufacture IT hardware, including notebooks and servers. The company is also moving into components such as camera modules and telecom equipment. This backward integration and product diversification aim to capture more value and could improve margins over the long term.
Revenue was approximately ₹10,697 crore in FY22. It rose to ₹48,873 crore in FY26.