Xiaomi's Product Offensive Hits India and EVs but Margins Stretch Stock to Breaking Point

Xiaomi pushes ahead with Mini LED TV in India, 550K EV target, and 2nm chip phones, but heavy spending and rising costs drag profit down 43%, pinning stock near €3.05.

Xiaomi is charging ahead on multiple product fronts — a premium Mini LED TV launch in India, ambitious electric vehicle production targets, and next-generation smartphone chips — but its stock remains pinned near a 52-week low as the cost of expansion eats into profitability. The Shenzhen-based company closed at €3.05 on Friday, down 2.37%, leaving it barely above the year’s trough of €2.97. The shares have lost 32.07% since the start of 2026.

The disconnect between operational tempo and market sentiment is stark. In the first quarter, revenue fell 10.9% to 99.14 billion RMB, while adjusted net profit collapsed 43.1% to 6.1 billion RMB, translating to diluted earnings per share of 0.18 CNY. The profit slump underscores the dual pressure from heavy capital spending on EVs and rising input costs, particularly for memory chips.

On the EV side, Xiaomi is aiming to deliver 550,000 vehicles in 2026, a 34% increase year-on-year. That target eclipses the local production volumes of Mercedes-Benz and BMW in China, where EV penetration already topped 59% in December 2025. Monthly deliveries have recently surpassed 30,000 units. Yet the capital intensity of the auto business is a clear drag on margins, and Jefferies has flagged the squeeze from higher memory prices. Goldman Sachs set a target price of 40 HKD for Xiaomi’s Hong Kong-listed shares at the end of May.

The smartphone division is not idle either. Xiaomi is readying its 18-series, due in the second half of 2026, which will be among the first handsets to feature Qualcomm’s Snapdragon 8E6 chip. Built on a 2nm process, the chip supports clock speeds up to 5 GHz and is designed to power on-device AI applications — a key growth driver for the next generation of smartphones.

But even as the company pushes hardware boundaries, the broader market is turning against growth stocks. Strong US jobs data reignited interest-rate fears, sending the Nasdaq down 4.2% on Friday. Xiaomi feels the pain through both valuation compression for growth equities and the cost structure of its hardware business.

In the consumer electronics segment, Xiaomi is targeting India with a new TV lineup. The TV FX Mini LED Series launches on June 11, covering screen sizes from 43 to 75 inches. The sets feature QD-Mini LED technology, 4K Ultra HD resolution, HDR10+, Filmmaker Mode, and DLG 120Hz on larger variants. Priced from 29,999 rupees, they will be sold through mi.com, Amazon.in, Flipkart, and Xiaomi retail stores. This launch feeds into Xiaomi’s smartphone × AIoT ecosystem, which generated 79.3 billion RMB in the latest quarter. IoT and lifestyle products alone contributed 24.7 billion RMB, with overseas IoT and lifestyle revenue reaching a record level.

To shore up confidence, Xiaomi continues to buy back shares. On June 5, it repurchased 3.5 million Class B shares in Hong Kong for a total of 98,030,768 HKD, at prices between 27.98 HKD and 28.04 HKD. Under the mandate granted on June 2, the company has so far bought back 7.0 million shares out of a ceiling of 2,583,952,309. The repurchased shares are to be cancelled.

Technically, the stock remains under pressure. It trades 9.87% below its 50-day moving average of €3.38 and 29.20% below the 200-day average. The relative strength index stands at 37.2, indicating no clear reversal. A move above €3.38 would be the first sign of stabilization; a fall below €2.97 would confirm a fresh low.

The India TV launch could provide a short-term catalyst, and the EV expansion reinforces Xiaomi’s long-term ambition, but neither addresses the core issue: margins are being compressed faster than growth can compensate. Until profitability shows signs of recovery, the stock is likely to remain trapped near its floor.