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Informist, Friday, Oct. 17, 2025

By Shakshi Jain and Simran Rede

NEW DELHI/MUMBAI – Dixon Technologies (India) Ltd., an electronics manufacturing services company that commands a significant share in the domestic mobile phones market, now aspires to champion international markets through its subsidiary IsmartU India Pvt. Ltd., a top company official said Friday in a post-earnings conference call with analysts. "In mobile, we already, we feel, we're going to be at 65-70% of the Indian addressable market. Now we want to leverage our relationship with Ismartu, Transsion, which is already the fourth largest brand globally, for getting into global markets," the management said.

On cost structures, the company aspires to become globally competitive without the Production-Linked Incentive scheme benefits. The management said under the current tie-ups, exports would mainly be focussed at Africa, Latin America, and the US.

The mobile phones business has led Dixon Technologies' growth in recent quarters and the company sees some further room for growth in this category by gaining a larger wallet share of existing customers and through new acquisitions, the management said, adding that the company has adequate cash flow to fund current plans. Dixon Technologies reiterated the earlier-stated target of around 42 million units in mobile phone production for 2025-26 (Apr-Mar) and 55 million to 60 million units for FY27. 

In the September quarter, revenue from the company's mobile and other electronics manufacturing services segment grew 15% on quarter and 41% on year to INR 133.61 billion. The vertical accounted for 90% of Dixon technologies' overall sales in Jul-Sept. Ismartu India contributed INR 25.88 billion to revenues for the September quarter.

Overall, the company's consolidated bottom line for the September quarter rose almost 200% sequentially and over 70% on year to INR 6.70 billion. Its revenue from operations rose almost 16% sequentially and 29% on year to INR 148.55 billion.

Dixon Technologies Vice Chairman and Managing Director Atul Lall said customers and retailers deferred buying decisions between middle of August and Sept. 21 in anticipation of lower prices post implementation of the recent Goods and Services Tax cuts. "Although demand began to normalise after the new GST rate came into effect on September 22, the short window of nine days before the quarter end was insufficient to fully recover the deferred volumes," he added. 

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Providing an update on the company's proposed joint ventures with Vivo India and HKC Overseas, the management said the Press Note 3 appraisal process is progressing well and the approval is expected in coming weeks. The company has received approval under Press Note 3 for the joint venture with Chinese peer Longcheer and has finalised a facility for the same which is expected to be operational by April 2026.

These proposed joint ventures are subject to regulatory approvals, including those under Press Note 3, which are mandatory for investments from countries sharing land borders with India.

In the first phase of the joint venture with HKC Overseas for display modules, Dixon Technologies is creating a capacity of 24 million per annum for smartphones and 2 million per annum for notebooks which would be for 76% of captive consumption, Lall said. In the second phase, the company will enhance this capacity to 60 million units per annum for smartphones which will account for almost 50% of the captive consumption.

On the joint venture with Kunshan Q Tech Microelectronics (India) Pvt. Ltd., Lall said the company has started consolidating financials from Sept. 26. "In the next six to nine months, investments will be made to expand the capacities and deepen the level of manufacturing," he added.

Answering a question on capitalising on opportunities in the data centre domain, the management said, "So, we feel, although it is at a very nascent stage, that our relationship with Inventec is going to be leveraged for that."

Lastly, the company management said a new facility in Chennai will be operational by the March quarter.

On Friday, shares of the company closed almost 1% lower at INR 16,700 on the National Stock Exchange. Dixon Technologies released its September quarter results after market hours.  End

Edited by Ashish Shirke

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