Dixon Technologies (India) Limited, a leading electronic manufacturing services (EMS) company, has reported a stellar performance for the first quarter of fiscal year 2026, with significant revenue growth and strategic initiatives to strengthen its position in the electronics manufacturing ecosystem.

Financial Highlights

Dixon Technologies posted consolidated revenue of INR 12,838.00 crores for the quarter ended June 30, 2025, representing a remarkable 95% growth compared to INR 6,588.00 crores in the same period last year. The company's consolidated EBITDA grew by 89% to INR 484.00 crores, while Profit After Tax (PAT) increased by 10% to INR 280.00 crores.

Key Financial Metrics

Mobile Phone Business Leads Growth

The mobile phone segment emerged as the primary growth driver, generating revenue of INR 11,663.00 crores with an impressive 125% year-on-year growth. This segment alone contributed to over 90% of the company's total revenue for the quarter.

Strong Financial Metrics

Dixon Technologies maintained robust financial metrics, with a return on capital employed (ROCE) of 49.1% and a return on equity (ROE) of 33.9%. These figures underscore the company's efficient capital management and profitability.

Strategic Initiatives and Partnerships

The company announced several strategic moves to enhance its manufacturing capabilities and expand its product portfolio:

1. Q Tech India Acquisition: Dixon signed a binding term sheet to acquire a 51% stake in Q Tech India for camera and fingerprint module manufacturing. The deal is expected to close in Q3 of the current fiscal year.

2. Joint Ventures:

   • Longcheer (74:26 partnership)
   • Vivo (51:49 partnership)
   • HKC for display modules (74:26 partnership)

3. Expansion in Refrigerator Business: The company captured around 10% of the Indian direct cool market within one year of operation. Plans are underway to expand capacity from 1.2 million to 2 million units.

Outlook

Management expects at least 15% quarter-on-quarter volume growth in Q2 ahead of the festive season. The company's diversified portfolio, strong customer relationships, and focus on backward integration are expected to drive consistent performance in the coming years.

As Dixon Technologies continues to expand its manufacturing capabilities and forge strategic partnerships, it is well-positioned to capitalize on the growing demand for electronic products in India and global markets.

Dixon Technologies , a prominent player in India's electronics manufacturing sector, has received a significant boost in its expansion plans. The company has secured approval from the Ministry of Electronics and Information Technology (MEITY) to form a joint venture with Longcheer Intelligence Pte. Ltd., a Chinese firm, marking a notable development in India's approach to electronics manufacturing and foreign investments.

Joint Venture Details

According to the latest LODR (Listing Obligations and Disclosure Requirements) filing, Dixon Technologies has been granted permission to establish a joint venture in India with Longcheer Intelligence. The ownership structure of this venture will be:

This approval comes under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, and is subject to the signing of definitive agreements between the parties.

Scope of the Joint Venture

The joint venture, to be operated through Dixon's wholly-owned subsidiary Dixtel Infocom Private Limited, will focus on manufacturing and supplying:

• Smartphones and tablets
• True wireless stereo devices
• Smartwatches
• AI PCs
• Automotive electronics
• Healthcare devices

Strategic Implications

This collaboration is expected to bring several advancements to Dixon Technologies:

1. Enhanced ODM Capabilities: The partnership will strengthen Dixon's Original Design Manufacturer (ODM) expertise for both domestic and export markets.
2. Advanced Product Design: It will enable Dixon to develop in-house capabilities for smartphones, IoT devices, and other consumer electronics.
3. Localization of Manufacturing: The venture aims to facilitate the localization of non-semiconductor sub-component manufacturing, including precision mechanics.
4. Software-Hardware Integration: Both design and product development processes will be conducted in India, bolstering the country's tech capabilities.

Broader Context: India's Electronics Industry Strategy

This development aligns with recent indications from senior government officials about India's electronics industry strategy:

• Over 60.00% of global electronics manufacturing is based in China, making collaboration crucial for India's electronics ecosystem growth.
• NITI Aayog has proposed allowing Chinese investments up to 24.00% in Indian entities without additional approvals.
• The government is exploring solutions to rare earth restrictions, including importing components containing rare earth minerals and considering alternative technologies and supply sources.

Regulatory Framework

The approval for this joint venture falls under the Press Note 3 of 2020, which requires government approval for investments from countries sharing a land border with India. This move suggests a calibrated approach by the Indian government in balancing strategic concerns with economic growth in the electronics sector.

As India continues to navigate its complex relationship with China in the technology sphere, collaborations like the Dixon-Longcheer joint venture may serve as a model for future engagements in the electronics manufacturing sector. The success of this venture could potentially influence India's broader policy on foreign investments in critical technology areas.