New Delhi: Noida-headquartered Dixon Technologies, India’s largest publicly listed electronics manufacturer, expects revenue growth of 15-17% in FY27, with management expecting growth to accelerate to as much as 45% if its long-pending joint venture with Vivo gets government approval.
In an interview with Mint following the company’s FY26 earnings on Tuesday, Saurabh Gupta, director and group chief financial officer of Dixon Technologies, said the company is in “advanced-stage talks” with the government regarding the Vivo joint venture and remains confident that approval is only “a matter of time away”.
The proposed joint venture with Vivo, in which Dixon holds a 51% stake, was first disclosed in December 2024. However, with Vivo owning the remaining 49%, the venture has been under the Centre’s scrutiny for more than 18 months under the government’s Press Note 3 restrictions. The deal could increase Dixon’s mobile phone manufacturing volumes by up to 60%.
Imposed in April 2020, Press Note 3 restricted any direct investment from “countries sharing a geographical border with India” to invest in domestic firms. In March this year, the Centre amended the note to allow companies, including Chinese entities, to invest for up to a 10% non-controlling stake in a joint venture. The Dixon-Vivo deal, however, will still require approval from the government, given that Vivo’s stake in the venture is 49%.
Dixon Technologies on Tuesday reported ₹48,872.8 crore in revenue for FY26, up 25.8% annually. Net profit rose 33.4% to ₹1,644.25 crore, out of which ₹183.2 crore was contributed by FY25’s unsold inventory of products already manufactured by Dixon.
The company’s earnings were largely in line with analyst estimates, which projected full-year revenue of ₹48,874 crore as per a Bloomberg poll of 27 analysts. Dixon’s shares closed 6.05% lower on Tuesday at ₹10,120 apiece in a largely weak market. The company’s results were declared after market hours.
Focus on phones
Gupta said despite the slowdown in global and domestic markets, mobile phones will be a pivotal focus for Dixon Technologies in the current fiscal year as well. To be sure, mobile phone manufacturing contributes to over two-thirds of Dixon’s top line.
“Mobile phones still make for the largest base market to target for us. While we are diversifying, and revenue from telecom and IT hardware will witness strong growth in coming years, we do not see the biggest chunk of the electronics manufacturing pie moving away from mobile phone manufacturing."
Dixon delivered a full-year volume of 33 million mobiles manufactured through FY26, he said. "We expect the pricing to be higher by 12-15% this fiscal. Further, the volumes should grow once Vivo transaction is consummated.”
The company expects to export 3-4 million mobile phone units next year.
“Exports will increasingly amount to significant high-margin revenue opportunities on account of operating leverage. Plus, we have existing display and camera module manufacturing facilities, which we will integrate into the mobile phone manufacturing line which will help in expansion of margins,” Gupta said.
"We’re also hearing strong word on a second production-linked incentive plan from the Centre, which might incentivize exports from India. If and when it does come, Dixon will be in a good position to leverage it.”
Analysts have largely tied Dixon’s medium-term outlook to approval of the Vivo joint venture. In a 1 February note, brokerage ICICI Direct said that Dixon’s deal with Vivo could add up to 20 million smartphone units in the full year.
“We believe major part of the negatives (Vivo approval, uncertainty over PLI scheme, memory card cost spike along with select macro factors) are likely to be a cause of delay in company’s growth outlook and not necessarily denial,” ICICI Direct analysts Jaymin Trivedi and Kirankumar Choudhary wrote in the note.
Gupta also expressed confidence about incentives under the ministry of electronics and IT’s electronics components manufacturing scheme (ECMS).
“We do expect the early tranches of ECMS benefits to start flowing in from FY27 from camera modules, and meaningfully contribute from FY28—as display module manufacturing starts ramping up and stabilising,” he said.