Day: July 22, 2025

Shares of Dixon Technologies slipped over 2% intraday on Friday ahead of the company’s Q1 FY26 earnings announcement, as investors booked profits after the recent rally and remained cautious about short-term margin performance.

The stock, which had seen a strong upward movement over the last few months due to optimism surrounding India’s electronics manufacturing sector, is now under focus as analysts await clarity on volume growth, profitability, and client additions.

Stock Performance

• Share Price: Dixon shares fell around 2.1% to trade near ₹6,020.
• Recent Trend: The stock is up nearly 30% year-to-date, driven by positive developments in domestic production and contract wins.

Key Things to Watch in Q1 Results

1. Revenue Growth
   Analysts expect Dixon to report healthy top-line growth, aided by strong demand for mobile phone assembly and LED TVs. The expansion of its product portfolio and client base could reflect in increased order volumes.
2. Margin Pressure
   Despite revenue growth, margins may face pressure due to rising component costs and a shift in product mix. Investors will closely watch EBITDA margins and cost control measures.
3. PLI Scheme Impact
   With Dixon being a major beneficiary of the Production-Linked Incentive (PLI) scheme, updates on disbursements and production-linked milestones will be crucial.
4. New Partnerships and Capacity Expansion
   Any updates on new partnerships, especially with global brands, and progress in capacity expansions (including backward integration in components) will be key triggers.
5. Guidance for FY26
   Management commentary on full-year outlook, client demand visibility, and export opportunities will be important for future valuation.

What Analysts Say

Brokerages remain broadly positive on Dixon Technologies in the long term due to its strong execution capabilities and leadership in the EMS (Electronics Manufacturing Services) space. However, near-term volatility is expected around Q1 numbers due to margin concerns and market consolidation.

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Conclusion
As Dixon Technologies prepares to report its Q1 results, all eyes are on its revenue momentum and margin trajectory. While long-term growth levers remain intact, the stock may see short-term movement based on earnings quality and forward-looking guidance.

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Shares of Zee Entertainment Enterprises Ltd (ZEEL) fell as much as 5% on Friday after the company reported weaker-than-expected Q1 FY26 earnings, primarily due to a sharp decline in advertising revenue. The stock was trading lower amid concerns over slowing recovery in the media and broadcasting segment.

Key Highlights of Zee’s Q1 FY26 Performance:

• Revenue: ₹1,830 crore, down 6% year-on-year.
• Net Profit: ₹126 crore, a 14% decline from the same period last year.
• EBITDA: ₹278 crore, with margins contracting slightly due to higher costs.
• Advertising Revenue: Down 12% YoY, worse than analyst expectations.

What Led to the Decline?

The company attributed the revenue dip to sluggish ad demand from key sectors like FMCG and Auto, coupled with reduced ad spending in regional markets. Furthermore, the delayed recovery in consumer sentiment post-election season and weak rural demand have added pressure on broadcasters like Zee.

Subscription Revenue & OTT Performance

While traditional broadcast revenue faced challenges, Zee’s OTT platform, ZEE5, showed modest growth. Subscription income rose by 4%, helped by digital bundling and improved pricing models. However, this was not enough to offset the decline in ad revenue.

Market Reaction

Following the results announcement, investor sentiment turned negative.

• Stock Movement: Zee’s shares dropped over 5% in intraday trade, briefly touching a low of ₹180 before stabilizing around ₹183.
• Volume Spike: Trading volumes surged as investors reacted to the underwhelming numbers and the management’s cautious guidance.

Management Commentary

The management acknowledged short-term pressure but remains optimistic about a recovery in H2 FY26. “We are focused on recalibrating our ad strategy, cutting content costs where feasible, and strengthening our digital presence,” a company spokesperson said.

Outlook Ahead

Analysts expect near-term volatility to continue for Zee unless ad revenue trends improve. The company’s ongoing cost control measures and digital push will be key to its turnaround.

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Conclusion:
Zee Entertainment’s Q1 numbers underscore the challenges faced by traditional broadcasters in a rapidly changing media landscape. With a sharper-than-expected fall in advertising revenue, the company has work to do in stabilizing core operations and winning back investor confidence.

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Zomato founder and CEO Deepinder Goyal witnessed a stunning surge in personal wealth this week, as shares of Zomato’s parent company, Eternal, soared significantly over the past two days. The rally has added nearly ₹2,000 crore to Goyal’s net worth, cementing his position as one of India’s top tech entrepreneurs.

What Triggered the Rally?

The stock market rally was fueled by a stellar Q1 FY26 performance from Eternal, showcasing a 70% year-on-year jump in revenue, driven by continued growth in food delivery and hyperpure (B2B supply chain) segments. The company’s improving profitability and strong operational performance reassured investors about its long-term vision.

• Stock Performance: Eternal’s shares jumped over 15% in two trading sessions, touching their highest levels in over a year.
• Investor Sentiment: Bullish analyst outlook and renewed foreign investor interest have strengthened the stock’s momentum.

Deepinder Goyal’s Stake Surge

Deepinder Goyal, who holds over 4.7% stake in Eternal, benefited directly from this sharp rally. Based on the current market valuation:

• His net worth from Eternal alone increased by approximately ₹2,000 crore in just two days.
• Goyal now joins the elite league of Indian startup founders with substantial stock-driven wealth, alongside names like Bhavish Aggarwal (Ola) and Vijay Shekhar Sharma (Paytm).

What’s Next for Eternal?

Market experts believe that Eternal’s focus on sustainable profitability, expanding into quick-commerce, and strengthening logistics will further drive long-term value creation.

Conclusion

Deepinder Goyal’s growing wealth is a reflection not just of Eternal’s financial success but also of how investor confidence can reshape a company’s market story in just days. With strong earnings, expanding business lines, and increasing investor optimism, Eternal’s rally might just be the beginning of a long-term growth story.

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