Dixon Technologies shares drop 8% despite reporting massive surge in Q4 profit; here is why

Shares of the Noida-based company came under intense selling pressure after its net profit, which surged four times in fourth quarter of financial year 2024-25, came on the back of an exceptional gain of ₹250 crore arising from sale of AIL Dixon Technologies Private Limited shares to Aditya Infotech Limited.

The sharp jump in profit came on account of an exceptional item of ₹250 crore arising from sale of AIL Dixon Technologies Private Limited shares to Aditya Infotech Limited.

“On 8 July 2024, the Holding Company entered Into Share Subscription and Purchase Agreement (SSPA) with Aditya Infotech Limited ("Aditya"} for sale of 9,500,000 fully paid up equity shares of AIL Dixon Technologies Private Limited ('AIL Dixon'} representing 50% of AIL Dixon equity share capital, the joint-venture company. The consideration of this transaction is through exchange of 73,05,805 equity shares of Re. 1 each, representing 6.50% of Aditya equity share capital on a fully diluted basis. The fair value gain of ₹25,037 lakhs and ₹20,961 lakhs on these investments has been recognised during the quarter ended 31 March, 2025 and 30 September 2024 as exceptional item,” Dixon Technologies said in a regulatory filing.

Dixon technologies' revenue from operations in fourth quarter of financial year 2024-25 (Q4FY25) jumped 121% to ₹10,293 crore as against ₹4,658 crore in the year-ago period.

Its revenue from mobile and other EMS division jumped 194% to ₹9,102 crore and its operating profit surged 232% to ₹349 crore.

Revenue from consumer electronics and appliances (LED TV & Refrigerator) business saw a decline of 23% to ₹689 crore from ₹897 crore in March quarter while its operating profit rose 40% to ₹42 crore from ₹30 crore in the year-ago period.

Dixon Technologies reported stable operational performance in March quarter as its earnings before interest, taxes, depreciation and amortisation (EBITDA) also known as operating profit jumped 143% to ₹443 crore and its EBITDA margin improved by 40 basis points to 4.30%.

The company's board recommended a final dividend of ₹8 per share.

As of 9:43 am, Dixon Technologies shares traded 6.40% lower at ₹15,506, underperforming the BSE200 index which was up 0.44%.