Dixon-Vivo JV Nears Completion, Q3 Revenue Expected

Dixon Technologies anticipates its joint venture with Chinese smartphone firm Vivo will finalize within the next two months, with revenue contributions expected to commence in the October-December quarter.

This strategic partnership, which received government approval in July 2026 following a term sheet signed in December 2024, is critical for expanding mobile manufacturing capacity. CEO Atul Lall highlighted its role in significantly increasing Dixon’s consolidated mobile production and mitigating risk exposure to Vivo in India, especially given Vivo’s past encounters with the Enforcement Directorate.

Key Financials & Strategic Capacity Shifts

• Dixon reported a 3% decline in profit after tax during the first quarter of the current fiscal year.
• This profit dip stemmed from the expiry of the mobile production-linked incentive scheme and rising input costs.
• Camera module capacities at subsidiary Q Tech are set to expand from 7 crore to 18-19 crore annually.
• This expansion is projected to occur over the next 15 to 18 months.

Beyond the Vivo collaboration, Dixon is aggressively pursuing other growth avenues. Its display facility construction is complete, and machinery installation is underway for mobiles, IT hardware, and automotive displays.

• Trial production for the display facility is scheduled to begin at the start of Q3.
• Mass production is anticipated by the end of Q3 or early Q4 of the current fiscal year.

The impending finalization of the Vivo joint venture, coupled with strategic expansions in camera modules and display manufacturing, positions Dixon Technologies for a significant operational ramp-up and diversified revenue streams in the coming quarters.