Dixon Technologies: Growth, Expansion & Government Support Post-PLI

Dixon Technologies reports profit surge, explores IT hardware, and anticipates smartphone manufacturing. Government support discussions continue post-PLI, with investments in component manufacturing to reduce cost disadvantages.

Lall claimed the government has actually started initial discussions with stakeholders regarding offering extra assistance to the cellphone sector after the PLI plan ends in FY26. However, the conversations are at an initial stage.

Post-PLI Government Support for Cellphone Sector

“The ambition is for the IT organization to get to around Rs 4,000-5,000 crore in the next 2 years,” Lall said. The company is discovering making data centre components via its joint endeavor with Taiwan-based original layout maker (ODM) Inventec which will get operational from the initial quarter of FY27.

Dixon Technologies saw an 81% profit rise driven by brand-new agreements. Dixon is also discovering IT hardware development and export chances.

IT Hardware Expansion and Export Opportunities

Lall said Dixon is in discussions with a huge international ODM of smartphones, expecting manufacturing to start by the last quarter of FY26 or early following fiscal, with expected volumes of concerning half a million units monthly.

“That 4-5% disability we are attempting to hide with our component play that is display screen, mechanical rooms, power supply, SSD (solid-state drives), which when we are able to do in the following 7-8 months, we feel our expense frameworks are going to be just as good as China,” Lall claimed.

Dixon has actually likewise made an application for government rewards to make video camera modules, finger print sensing units, display assembly, mechanical rooms, lithium-ion batteries and small form-factor pluggable optical transceivers, under the electronic devices component manufacturing scheme, claimed its handling supervisor and vice chairman, Atul Lall.

Component Manufacturing to Reduce Costs

Dixon Technologies saw an 81% profit rise driven by new contracts. The business is spending Rs 3,000 crore in its parts organization over the next 2 to three years. Dixon is additionally discovering IT equipment development and export opportunities.

As soon as in manufacturing, the parts will help Dixon boost its backwards integration and eliminate price impairments, particularly in IT equipment production, where Lall said India has a 4-5% expense special needs for products made in India contrasted with products imported at absolutely no task.

Investment in Components Business and Government Incentives

Dixon Technologies has actually reported an 81% year-on-year jump in quarterly net earnings, helped by a multitude of brand-new contracts. The firm likewise said it has actually obtained government sops under the parts system and will invest regarding Rs 3,000 crore right into its elements service over the next two-three years.

“There can be some (margin) pressure for a number of months by the time the display screen and camera modules are ready for production. Electronic camera modules have actually currently started taking place due to the fact that it’s a running plant, and the display plant is going to become operational by March-April. There can be some stress for a pair of quarters in FY27,” Lall claimed.

The company’s mobiles, wearables, telecom and IT hardware production, which made up 90% of the company’s earnings, expanded by 41% y-o-y to Rs 13,361 crore, contributing Rs 472 crore to running margins in Q2 of FY26.