Dixon Technologies (India) Limited Just Recorded A 5.6% Revenue Beat: Here's What Analysts Think

There's been a notable change in appetite for Dixon Technologies (India) Limited (NSE:DIXON) shares in the week since its third-quarter report, with the stock down 13% to ₹14,715. It was a workmanlike result, with revenues of ₹105b coming in 5.6% ahead of expectations, and statutory earnings per share of ₹35.64, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Dixon Technologies (India)

Taking into account the latest results, the current consensus from Dixon Technologies (India)'s 26 analysts is for revenues of ₹568.2b in 2026. This would reflect a major 71% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 51% to ₹198. In the lead-up to this report, the analysts had been modelling revenues of ₹526.1b and earnings per share (EPS) of ₹192 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to ₹16,596per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Dixon Technologies (India), with the most bullish analyst valuing it at ₹22,005 and the most bearish at ₹8,696 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Dixon Technologies (India)'s growth to accelerate, with the forecast 54% annualised growth to the end of 2026 ranking favourably alongside historical growth of 37% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dixon Technologies (India) to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dixon Technologies (India)'s earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Dixon Technologies (India). Long-term earnings power is much more important than next year's profits. We have forecasts for Dixon Technologies (India) going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Dixon Technologies (India) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.