Dixon Technologies vs Amber Enterprises: Here's how leading EMS players performed in Q4FY25 results

India’s leading contract manufacturers for electronic goods have reported robust performance in the Q4 results. The shares of Amber Enterprises and Dixon Technologies came in focus after US tariffs on China made India a favourable destination for contract manufacturing. Government of India’s push for contract manufacturing through PLI scheme resulted in attracting heavy investments in the sector. Companies like Amber Enterprises and Dixon Technologies have been successful in capitalising on the opportunities.

Here’s how Amber Enterprises and Dixon Technologies fared in Q4

Robust topline growth

Amber Enterprises posted 33% YoY growth in revenue at ₹ 3,753 crore, and Dixon Technologies posted a 121% YoY jump in total income at ₹10,293 crore. The strong order win and robust execution aided in a multifold jump in revenue for Dixon Technologies. Dixon Technologies Mobile and EMS division’s revenue contribution increased from 66% in Q4FY24 to 88% in Q4FY25. Similarly, for Amber Enterprises, the Consumer Durable segment contributed nearly 73% of the total revenue for the quarter.

Operational performance

On the operational front, Dixon Technologies reported a 128% YoY jump in EBITDA at ₹454 crore as against ₹199 crore in the previous year's similar quarter. For Amber Enterprises, the EBITDA for the quarter grew by 33% YoY to ₹314 crore as compared to ₹234 crore in the previous year’s similar quarter. Dixon Technologies Mobile and EMS division witnessed increased contribution to operating profit from 57% to 79% for Q4FY25.

Amber Enterprises continues to outperform Dixon Technologies in terms of operating margin performance. Amber Enterprises reported an EBITDA margin of 8.4% as compared to 4.3% of Dixon Technologies. The operating expenses for Dixon Technologies also jumped 120% in line with the revenues, which aided lower margins.

Bottomline

Dixon Technologies recorded a one-off exceptional gain of ₹254 crore, which led to a multifold rise in the net profit at ₹401 crore. However, after an exceptional gain, the net profit nearly doubled to ₹185 crore from ₹95 crore in the previous year's similar quarter. On the other hand, Amber Enterprises reported a 20% YoY jump in the net profit at ₹118 crore.

Share price performance

Both the EMS players portrayed similar performance in their share price for last one year and on a YTD basis. On YTD basis, the share price of Amber Enterprises and Dixon Technologies are trading nearly 10% lower from January 1. In the past one year shares have gaines nearly 70% defying the broader market trend of sluggishness.