Dixon Technologies (India) Limited has executed definitive agreements with vivo Mobile India Private Limited to form a joint venture for the original equipment manufacturer (OEM) business of electronic devices, including smartphones. The joint venture company will be incorporated in India, with Dixon holding a 51% stake and vivo Mobile India holding the remaining 49%. This strategic partnership is intended to bolster Dixon's manufacturing excellence and strengthen its foothold in the android smartphone and broader electronics ecosystem.

The agreements executed include a joint venture agreement to incorporate the entity and a shareholders' agreement to govern the management and operations. The initial paid-up share capital of the joint venture company will be ₹5 crore, contributed in proportion to the shareholding ratio. Neither company will hold any stake in the other outside of this joint venture. Upon incorporation, the joint venture will become a subsidiary of Dixon Technologies (India) Limited.

vivo Mobile India has received approval from the Government of India, vide a letter dated July 8, 2026, under Press Note 3 of 2020 issued by the Department of Promotion of Industry and Internal Trade. This approval covers the incorporation of the joint venture company and the subscription of shares by vivo Mobile India. The transaction is subject to the completion of customary conditions precedent and receipt of applicable statutory approvals.

The joint venture will undertake part of vivo Mobile India's OEM orders for smartphones in India and can engage in the OEM business of various electronic products for other brands. At the closing of the transaction, the joint venture will purchase certain manufacturing assets through an asset purchase agreement and enter into a manufacturing and packaging agreement with vivo Mobile India.

Joint Venture Structure

The key parameters of the joint venture are outlined below:

Governance and Transaction Terms

The shareholders' agreement provides for both parties to nominate two directors each to the board of the joint venture company. Additionally, both parties will have information and inspection rights. The transaction will be classified as a related party transaction post-incorporation and will be conducted on an arm's length basis, with valuation reports procured in accordance with applicable laws. The outer date for completing the conditions precedent is one year from the execution of the joint venture agreement.

Analyst Views: UBS and Macquarie Both Bullish

The PN3 approval for the Vivo joint venture has drawn strong positive responses from global brokerages, with both UBS and Macquarie reaffirming their bullish outlook on Dixon Technologies.

UBS: Buy Rating with ₹13,700 Target

Global brokerage UBS has maintained its Buy rating on Dixon Technologies, viewing the PN3 approval as a significant positive trigger for growth, and has set a target price of ₹13,700. The brokerage expects the transaction to close within 45–60 days from the approval, paving the way for the JV to commence operations in the near term. According to UBS, the joint venture is expected to handle around two-thirds of Vivo's approximately 32 million annual smartphone volumes, translating to roughly 1.75 million units per month, and considers this a key catalyst for Dixon's growth trajectory, particularly for FY27–FY28.

Macquarie: Outperform with Raised Target of ₹16,000

Macquarie has maintained its Outperform rating on Dixon Technologies while raising its target price to ₹16,000, citing the Vivo JV as a transformative development that significantly boosts earnings visibility. The brokerage forecasts the JV has the potential to triple Dixon's EPS by FY29. Macquarie projects a 28% revenue CAGR and a 43% EPS CAGR over FY26–29, underpinned by the scale and strategic importance of the Vivo partnership. Beyond the JV, Macquarie also highlights additional upside potential from PLI 2.0, industrial EMS, automotive, IT hardware, and duty-cut benefits as further growth levers for the company.

Dixon Technologies witnessed two notable block trades on the National Stock Exchange (NSE), reflecting significant institutional-level activity in the counter. The two transactions together spanned approximately 43,234 shares across both deals.

NSE Block Trade Details

The following table summarises the two block trades recorded for Dixon Technologies on the NSE:

Transaction Overview

The first block trade was executed at Rs. 13882.00 per share for approximately 26,646 shares, amounting to a total deal value of Rs. 36.99 crores. The second block trade was executed at Rs. 13841.00 per share for approximately 16,588 shares, amounting to Rs. 22.96 crores. The two trades were priced at a difference of Rs. 41.00 per share, with the first trade carrying a higher per-share price compared to the second.