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Informist, Friday, Jul. 31, 2026

 

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--Dixon Tech: Q1 presented complex macroeconomic environment for industry 
--CONTEXT: Comments by Dixon Tech management in post-earnings analyst call 
--Dixon Tech:Focus intact on backward integration, expansion across verticals 
--Dixon Tech: Saw temporary demand decline in mobile category Q1 
--Dixon Tech: To start mfg of higher capacity semi-automatic washing machine 
--Dixon Tech: Have healthy order book for mini bar refrigerators 
--Dixon Tech: On track to clock earlier stated numbers for feature phones 
--Dixon Tech: Feel co at inflection point in IT hardware business 
--Dixon Tech: Exploring export opportunities for lighting products 
--Dixon Tech: To launch new range of lighting products in next 6-8 months 
--Dixon Tech: Aggressively working in direction of precision engineering 
--Dixon Tech: See strong growth in smartphone manufacturing in H2 
--Dixon Tech: See memory chip prices continuing to rise, pressure margins

 

By Diksha Tripathy and Shakshi Jain

 

MUMBAI – Dixon Technologies (India) Ltd. expects smartphone manufacturing volumes to pick up in the second half of 2026-27 (Apr-Mar) as consumer demand improves, the company's management said at a post-earnings analyst call Friday. The company also remains on track to meet its previously announced targets for feature phone manufacturing, management said.

The company said the electronics manufacturing industry operated in a "complex macroeconomic environment" in Apr-Jun, with inflation in commodities, supply chain disruptions, and rising memory chip prices weighing on margins. The company said it remained focused on backward integration and capacity expansion across businesses to drive long-term growth.

 

Management said the mobile business witnessed a temporary demand contraction in the first quarter amid weakness in the broader smartphone market. Despite this, Dixon Tech expects smartphone volumes to grow 20-25% sequentially in the September quarter, backed by a healthy order book, and sees stronger growth in the second half. 

 

"Our market position, customer engagement, and manufacturing capabilities remain intact and we expect 20-25% volume growth, quarter-on-quarter growth as consumer demand strengthens and we have a strong order book," Vice Chairman and Managing Director Atul Lall said. 

 

On feature phones, the company management said it continues to be the largest manufacturer in India and remains on track to achieve previously guided volumes. Almost two-thirds of the production is being done in India with Dixon Tech, the top officials said. They also said one of the company's anchor customers is shifting the export base to India, which is expected to further solidify Dixon's presence. "And please be rest assured that it is on track," Lall said. 

 

Dixon Tech officials also said the company is at an "inflection point" in its IT hardware business, supported by a strong order book. "We feel that we're going to be having a very large share of the Indian market for laptops, tablets, desktops, AIOs (All-in-ones)," Lall said. "Extension of that, our partnership with Inventech, in which we are going to be pouring into the higher-end products like servers," he added. 

 

In the home appliances business, the company has started manufacturing higher-capacity 16-kg and 18-kg semi-automatic washing machines and remains on track to launch front-loading washing machines in the third quarter. "Addition of a new manufacturing facility in Tirupati will expand our capacities from 0.6 million units per annum by another 0.3 million units per annum, including a fully automatic front-loading washing machine line, which will be launched in Q3 (December quarter) this fiscal (FY27)," the top official said. 

 

Dixon Tech also has a healthy order book for robotic vacuum cleaners and plans to commence production of dishwashers and microwave ovens in the December quarter. "We remain confident that increasing premobilisation and rising appliance penetration will continue to provide long-term growth opportunities in this segment," the chairman said.

 

For the refrigerator business, management acknowledged some demand weakness due to higher commodity prices and a less intense summer, but said the company continues to see a healthy order book for mini-bar refrigerators. It is also expanding capacity for two-door, side-by-side and deep-freezer products.

 

In the lighting vertical, Dixon said it is exploring export opportunities and expects to begin shipments to major retail chains globally in FY27. The company also plans to launch a new range of professional lighting products, including streetlights, floodlights, and industrial lighting, over the next six to eight months. 

 

Management said it is also aggressively pursuing opportunities in precision engineering, although it did not disclose further details. On margins, Dixon cautioned that memory chip prices are likely to continue rising through FY27, keeping pressure on profitability. It expects margin improvement to come from component manufacturing and backward integration from the next financial year rather than in FY27.

 

Dixon Technologies reported a consolidated net profit of INR 6.63 billion on revenues of INR 155.48 billion in the June quarter. Friday, the company's shares ended 2% lower at INR 14,049 apiece on the National Stock Exchange. The company announced its June quarter results during market hours. End

 

Edited by Saji George Titus

 

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