Analyst ·
Q Tech ramp-up; CAPEX; CE outlook
Atul: Q Tech top 5 globally; running factory India, supplies all major Android brands (Vivo Oppo Xiaomi Motorola). Indian market 450-475M camera modules. Dixon in-house 180-190M in 2 years. Last year revenue INR 1,977 crores; targeting INR 5,000 crores 4-5 years. INR 400 crores share purchase + INR 150 crores CAPEX. Chongqing project cost INR 100 crores; numbers being worked out. CAPEX Q1 INR 287 crores, FY26 ~INR 1,150-1,200 crores. CE Q1 significant TV miss; Q2 800k recovery; refrigerator strong.
Analyst ·
CCTV/security surveillance status
Atul: Only 6.5% minority stake in Aditya Infotech post-merger of CCTV business. No longer running. Saurabh: Sold 50% stake to JV partner, took 6.5% in branded entity which is going for IPO. Minority shareholder.
Analyst ·
Longcheer JV rationale; Chinese JV approvals status
Atul: Longcheer one of largest ODMs globally - 74:26 JV PN3 expected shortly. Firms up post-PLI scenario; deepening manufacturing supply chain; expanding product portfolio beyond smartphones; joint design center. HKC display PN3 under approval, project not hinging on PN3, parallel execution. Vivo PN3 under evaluation, expected 60 days. Q Tech doesn't need PN3 - similar to Ismartu. Yuhai Chongqing PN3 application in 30-45 days.
Analyst ·
Q Tech valuation rationale; smartphone Q1 volumes
Saurabh: Q Tech revenue INR 2,000 crores, EBITDA margin 7-7.5%, INR 150 crores EBITDA, INR 72 crores PAT. 15x PAT or 9-10x EV EBITDA. Negotiated valuation - both partners bring synergies. Margin from 7-7.5% to 9-9.5% over coming years. Q1 smartphone 9.6 million, feature phone 5.7 million.
Analyst ·
Bare PCB manufacturing plans
Atul: Not pursuing now - tight ECMS application timeline. Surplus global PCB capacity, no duty arbitrage (ITA-1 category), government cannot create duty arbitrage. Different financial metrics. Could pursue separately. Industrial/automotive PCBA aggressive pursuit area.
Analyst ·
Q1 cell phone growth drivers; post-PLI scenario
Atul: Q1 9.6M, Q2 ~11-12M. Mix - domestic + anchor customer global market flip. FY26 confident 42-43M ex-Vivo. Post-PLI three factors: (1) deepen relationships + scale operating leverage, (2) JV-bound relationships (Transsion, Vivo), (3) backward integration camera modules + displays. More than adequately compensate for PLI.
Analyst ·
Camera module revenue math; minority interest decline
Atul: INR 5K is certain percentage of addressable market not full capacity. Saurabh: Minority interest from Ismartu, telecom JV with Airtel (49%), Califonix. Last quarter had AIL Dixon numbers (sold subsequently). Q2 revenue growth in line/slightly better than Q1's 15% QoQ. Export revenues in Q2 also.
Analyst ·
Non-mobile size in 3 years; Motorola sharing
Atul: Non-mobile - Telecom INR 5,000 crores, refrigerator INR 2,000-2,500 crores, washing machine INR 1,800-2,000 crores, lighting JV double to INR 2,000 crores, IT products INR 3,000-3,500 crores. Hearables/wearables organic growth. Motorola - 80%+ requirements still with Dixon despite another EMS.
Analyst ·
Management bandwidth; export ASP/margins
Atul: Hired VP Strategy & Digital Transformation, VP Components, Taiwan expat for display, Korean expat for washing machines/appliances, VP HR. Talent acquisition ongoing, in sweet spot. Anchor export ASP similar to domestic but ramp-up costs higher initially. Final margins similar.
Analyst ·
FY27 60-65M market share; export mix; mobile margin trajectory
Atul: Longcheer JV upside. FY25 exports INR 1,600 crores, FY26 expect INR 7,000 crores, scale to INR 11,000-12,000 crores. Saurabh: Number includes export element. Saurabh: FY27 margin expansion 120-130 bps even after PLI loss. FY28 further margin expansion via mobile displays + TV/automotive displays.
Analyst ·
Inventec JV products; SSD/memory partner; Longcheer volume tied
Atul: Inventec 60:40 - notebooks, AIOs, servers. Backward integration via Chongqing Yuhai (large vendor to Inventec/HP). Evaluating SSD/memory - Inventec has in-house capability. Once Longcheer JV formed, all Longcheer volumes go through it. Saurabh: Longcheer deep relationships, equity partner means volumes part of JV.
Analyst ·
FY26 component CAPEX split; Q Tech margin levers
Saurabh: Camera + display CAPEX INR 750-800 crores; other expansion INR 300-400 crores; total INR 1,100-1,200 crores. Q Tech EBITDA 6.5-7%, can grow to 8.5-9%, then 9-9.5% via operating leverage + ECMS PLI + deepening manufacturing.
Analyst ·
JV timelines; mobile export business case beyond US
Atul: Q Tech consolidate next 2-2.5 months, INR 5,000 crores 4-5 years. HKC display Q4 trials, FY27 revenues; 4M mobile + 1.5-1.8M notebook + 2-2.5M automotive displays. Inventec Q4 current/Q1 next. Yuhai plan being drawn. Vivo waiting PN3. Africa exports started.
Analyst ·
Margin improvement timing; Vivo volumes in 60-65M
Atul: First half slow component impact, second half confident. Saurabh: Cameras and displays start reflecting; precision components later. Full impact second half FY27. Existing customers already use Q Tech. Saurabh: 60-65M includes Vivo volumes. Atul: Vivo 22% Indian market, 30-35M, two-thirds in JV = 18-20M when consolidated. FY26 40-42M + 20-25M Vivo bucket.