Dixon Technologies, based in Noida, is optimistic about its revenue growth in FY27, projecting an increase of 15-17%. The company believes that this growth could surge to 45% if it secures government approval for its long-awaited joint venture with Vivo.
Saurabh Gupta, the director and group CFO, stated in a recent interview that they are in advanced discussions with the government regarding the Vivo partnership and are confident that approval is imminent. This joint venture, first announced in December 2024, would see Dixon holding a 51% stake, with Vivo owning the remaining 49%. The deal has faced scrutiny from the government for over 18 months due to restrictions on foreign investments from countries sharing a border with India.
Mobile Manufacturing Focus
Despite challenges in both global and domestic markets, Dixon Technologies is prioritizing mobile phone manufacturing, which accounts for more than two-thirds of its revenue. The company manufactured 33 million mobile phones in FY26 and anticipates further growth through partnerships with key clients like Vivo and Motorola.
Gupta noted that exports are expected to contribute significantly to revenue, with projections of 3-4 million mobile phone units to be shipped next year. The integration of existing display and camera module facilities into the mobile manufacturing process is expected to enhance profit margins.
Future Incentives and Expectations
Analysts view the approval of the Vivo joint venture as crucial for Dixon's medium-term growth. A report from ICICI Direct suggested that the partnership could add up to 20 million smartphone units annually. Gupta also expressed optimism about potential incentives from the government’s electronics components manufacturing scheme, estimating that these could contribute ₹800 crore to revenue in FY27.
Dixon Technologies reported a revenue of ₹48,872.8 crore for FY26, marking a 25.8% increase from the previous year, with net profit rising by 33.4% to ₹1,644.25 crore. The company's performance was in line with analyst expectations, although its shares saw a decline of 6.05% in a weak market environment.
