Dixon Technologies

Dixon Technologies reported consolidated revenue of INR 12,838 crores for the quarter ended June 30, 2025, representing 95% growth compared to INR 6,588 crores in the same period last year. Consolidated EBITDA grew 89% to INR 484 crores, while PAT increased 10% to INR 280 crores. The mobile phone business generated INR 11,663 crores in revenue with 125% year-on-year growth. The company maintains strong financial metrics with return on capital employed of 49.1% and return on equity of 33.9%. Dixon announced several strategic initiatives including a binding term sheet for 51% stake in Q Tech India for camera and fingerprint modules manufacturing, expected to close in Q3. The company is advancing joint ventures with Longcheer (74:26), Vivo (51:49), and HKC for display modules (74:26). Management expects at least 15% quarter-on-quarter volume growth in Q2 ahead of the festive season. The refrigerator business captured around 10% of the Indian direct cool market within one year of operation, with capacity expansion planned from 1.2 million to 2 million units.

Senior government officials indicate India's electronics industry requires increased engagement with China to develop domestic manufacturing capabilities. Government sources confirm over 60% of global electronics manufacturing is based in China, making collaboration unavoidable for India's electronics ecosystem growth. NITI Aayog has proposed allowing Chinese investments up to 24% in Indian entities without additional approvals, while current FDI policy requires government approval for investments from border-sharing countries. Dixon Technologies received government approval for a joint venture with Chinese company Longcheer, where the Chinese entity will hold 26% stake and Dixon retains 74%. External Affairs Minister discussed rare earth restrictions with Chinese Foreign Minister Wang Yi on July 14th, with the meeting ending positively. India subsequently relaxed visa issuance for Chinese tourists. Government officials are exploring solutions to rare earth restrictions, including importing components containing rare earth minerals instead of raw minerals, considering alternative technologies and supply sources. MEITY has engaged MEA to explore additional solutions. Regarding Chinese worker recalls affecting companies like Foxconn, officials state these companies have addressed challenges by sourcing talent from Taiwan, Japan, and the US.