Revenues from its mobile business in Q1FY26 grew 125% on-year to Rs 11,663, while operating profit grew 131% on-year to Rs 395 crore. Dixon’s mobile business contributed 91% to its topline of Rs 12,838 crore.
Dixon’s EBITDA margins dropped by 10 basis points on-year to 3.8% in the quarter ended June 2025. Net profit for the quarter doubled on-year to Rs 280 crore.
The contract manufacturer will start making camera modules, and display assemblies by the end of this fiscal, with precision mechanical components from the next fiscal, under the government’s Rs 22,000 crore electronics component manufacturing scheme, Dixon MD Atul Lall said in an earnings call Tuesday.
Dixon has projected Rs 750-800 crores in capital expenditure for its camera modules and display assembly business in FY26, with an additional Rs 300-400 crores in expanding capacities in its core EMS (electronics manufacturing services) business.
The company is acquiring a majority stake in the India operations of Kunshan Q-Tech Microelectronics, among the five largest camera module manufacturers globally for Rs 400 crore. It has also formed a joint-venture with HKC for display assembly, with a facility getting ready in the next 45 days, Lall said.However, the joint venture deals and acquisitions are currently pending approval under the government’s press note 3, which mandates ministerial approval for investments coming from neighbouring countries, especially China.Lall said the approval process is going well for these deals.
Dixon expects a 15% sequential growth in orders ahead of the festive season, and a boost in export volumes for its anchor customer, Motorola to the United States. The company is also negotiating a large export opportunity for another global brand, Lall said.
For the current year, exports are projected to reach Rs 7000 crore, from Rs 1600 crore last fiscal if the export deal works out, with Lall projecting Rs 11,000 crore in exports by FY27.
The company has also started exporting to Africa, where it sees a large opportunity having been able to meet the cost targets.
“The ASP (average selling price) for export is almost similar to domestic ASP but exports have some ramp up requirements wherein we have to invest more in the organisation. So while the margin levels are finally going to be similar, initially the costs are going to be more,” Lall said.
Dixon is also expanding its top management with more talent as it expands aggressively into newer categories.
The company appointed a vice president of strategy and digital transformation, and another top executive to head the component business. “We have hired an expert from Taiwan who heads our display manufacturing business, and a Korean expert who head our R&D for washing machines and appliances,” Lall said.
