Dixon Technologies vs Coforge Q4 FY26

Dixon Technologies reported Q4 FY26 revenue of ₹10,520 crore with EBITDA of ₹418 crore and PAT of ₹192 crore, excluding exceptional items. Full-year revenue grew 26% YoY to ₹48,893 crore, driven by telecom and IT hardware segments, while mobile volumes remained flat due to memory price inflation and softer demand. Management guided for 15-17% revenue growth in FY27 (excluding Vivo) to ~₹56,000 crore, with margin pressure from PLI expiry offset by backward integration (camera modules, displays). Key growth drivers include telecom (targeting ₹7,500-8,000 crore), IT hardware (3x to >₹4,000 crore), and lighting (2x to ₹1,700 crore). The display JV with HKC will commence commercial production in Q4 FY27. Risks include delayed Vivo JV approval and potential margin compression from PLI phase-out.

Guidance read

FY27 revenue target of ~₹56,000 crore (ex-Vivo): Management targets ~₹56,000 crore revenue for FY27, implying 15-17% growth, assuming flat mobile volumes and excluding Vivo JV. IT hardware revenue >₹4,000 crore in FY27: IT hardware segment expected to grow 3x to over ₹4,000 crore in FY27, driven by strong order books and new customer wins. Telecom revenue target of ₹7,500-8,000 crore in FY27: Telecom and networking segment targets ₹7,500-8,000 crore revenue in FY27, up from ₹5,000 crore in FY26. Lighting revenue to double to ~₹1,700 crore in FY27: Lighting segment expects 2x revenue growth to ~₹1,700 crore in FY27, driven by JV with Signify and export orders.

Risk read

Key risks include Vivo JV approval delay — The Vivo joint venture approval is pending with the government, which could delay a significant volume and revenue opportunity.; PLI expiry margin pressure — The expiry of PLI schemes for mobile phones will pressure margins by 50-70 bps, partially offset by operational efficiency and backward integration.; Memory price inflation impacting demand — Rising memory chip prices have increased smartphone ASPs, leading to softer consumer demand and flat volumes in the mobile segment.; PLI receivable uncertainty — ₹1,380 crore of PLI receivables are pending from the government, with a note in accounts highlighting potential risk if budget allocations are insufficient..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Coforge delivered a strong FY26 with 29.2% USD revenue growth, driven by broad-based vertical strength (healthcare +98%, travel +62%) and 21 large deal wins. EBITDA margins expanded 430bps YoY to 18.6%, aided by AI-led automation and G&A cost containment. Q4 EBIT margin hit a record 16.6%, up 370bps YoY. The executable order book stands at a record $1.75B, up 16.4% YoY, providing good visibility. Management guided FY27 consolidated EBITDA margins of 20.5-21% and EBIT margins of 15.5% (consolidated) / 16.5-17% (standalone), with FCF/PAT expected at 100%+. A planned exit of ~$20M low-margin India business will temporarily impact Q1 revenue, but overall growth is expected to be robust. Key risk: sustained weakness in the BFS vertical, which grew only 12% in FY26 due to a large client account issue, though management expects improvement.

Guidance read

FY27 Consolidated EBITDA Margin 20.5-21%: Management guided EBITDA margins of 20.5% to 21% for FY27 on a consolidated basis, driven by AI automation, G&A leverage, and Enkora synergies. FY27 Standalone EBIT Margin 16.5-17%: Standalone EBIT margin expected between 16.5% and 17% in FY27, excluding Enkora amortization. FCF to PAT at 100%+ from FY27: Free cash flow to PAT ratio expected to be at least 100% from FY27 onwards, up from earlier guidance of 70-80%. Q1 FY27 Revenue Flattish QoQ Due to India Business Exit: Revenue in Q1 FY27 expected to be flattish sequentially due to discontinuation of ~$20M low-margin India business, with growth resuming from Q2.

Risk read

Key risks include BFS Vertical Stagnation — BFS revenue grew only 12% in FY26, stuck at ~$120-123M for five quarters due to a large client account issue. Recovery depends on management's refactoring efforts.; Hedge Losses Impacting Reported Earnings — Mark-to-market hedge losses of ~₹164Cr for FY26 (₹70Cr in Q4) will continue for 1-2 quarters before tapering, affecting reported other income.; AI Deflationary Pressure on Revenue — Industry-wide AI-driven code generation could compress billing rates, though management argues total cost of ownership remains high and managed services will offset..

Promise ledger

Scorecard data is being built as historical quarters are processed.