← Throughline · holding view Deep analysis ↗ Q2 FY26
DIXON Dixon Technologies (India) Limited · Consumer durables Q2 FY26 · concall
Pattern: q3 q4 outlook fy26

Refused to commit on q3 q4 outlook fy26.

1 deflection · 3 weak · 11 clean — pushback across 4 of 15 Q&A turns

Focused evidence 4 of 15

Analyst · deflection

Q3/Q4 mobile outlook; FY26 revenue guidance; Ismartu exports

Atul: Specific Q3/Q4 numbers difficult. Saurabh: Never give guidance. Atul: We don't give guidance. Festival period 42M total, 20M done so far. Ismartu exports started, advanced potential, value engineering, deep manufacturing. Couple years large export segment for Transsion brand.

Analyst · weak

Mobile volume math FY27; medium-term volume growth post-65M

Atul: Conservative numbers, upside possible. 60-65M = larger share of wallet + new acquisitions. Export with Transsion/Ismartu significant. Display project margin accretive. Beyond 65M significant exports. Camera/display in-house.

Analyst · weak

PLI extension; data center opportunity

Atul: Discussions started government and stakeholders for additional support to mobile sector - preliminary stage. If PLI expires March '26 - some pressure couple quarters in FY27. Inventec JV leveraged for data center / servers.

Analyst · weak

FY30 revenue mix; Vivo replacing Motorola

Atul: Premature for FY30 segments. High growth verticals. Vivo large customer, both anchors aspired. Saurabh: Anchor revenue % confidential. Atul: Large base growth rate moderates from 100% but growth aggressive.

▸ Other Q&A (11)
Analyst ·

New ODM customer details; telecom growth scale

Atul: Large ODM smartphone, business start Q4FY26/early Q1FY27. Volumes ~0.5 million per month. Telecom from INR 700 crores to INR 4,800 crores this year. Largely CPE products (Wi-Fi routers, FWA, set-top boxes). New US-based radio order - $150B market category. Couple years overall telecom ~$1 billion.

Analyst ·

ODM origin; non-CPE telecom aspirations

Atul: Large global ODM, India-focused start, additional volume to existing for India market for large brand. Longcheer separate axis. Telecom raising capability beyond CPE - US partner breakthrough significant. December pilots, Q4 commercial production. Hired VP for non-CP strategy.

Analyst ·

FY26/FY27 mobile targets; front-load washing machine

Atul: FY26 40-42M (similar to earlier guidance). FY27 55-60M including Vivo. Earlier 60-65 still possible. No US export demand cut. Front-load 150-200K initial capacity at Tirupati.

Analyst ·

Other non-operating income; CAPEX guidance

Saurabh: Mark-to-market on 6.5% Aditya Infotech listed stake. Quarterly revaluation now mandatory. Adjusted numbers exclude. CAPEX H1 INR 550 crores; similar run rate next 6 months.

Analyst ·

Longcheer JV volumes; PLI status

Atul: Longcheer JV operational Q1FY27, FY27 volumes 8-10M part of 60-65M. Saurabh: Mobile PLI received till Sep '24, Oct '24-Jun '25 in last appraisal. Telecom PLI received FY25, FY26 next year. Lighting/AC inverter received FY24, FY25 in next weeks. Q2 PLI income across 4 PLIs ~INR 150 crores; H1 INR 290 crores.

Analyst ·

Longcheer profit dilution; IT hardware ramp

Atul: 74:26 split, margins shared but operational efficiency from Longcheer talent pool. Saurabh: Possibility of additional volumes. Atul: As-is conservative LC volume transfer. IT hardware FY26 INR 1,200-1,300 crores. HP, ASUS, Lenovo Noida + Acer shifted. Inventec JV Q2 FY27 commercial production. Two years ~INR 4,000-5,000 crores.

Analyst ·

Big growth drivers next 3-5 years; IT export potential; capital discipline

Atul: Mobile 65-70% addressable market. Component focus core - automotive component play significant. Telecom non-CPE radio breakthrough. Signify lighting JV opens global market. IT products INR 5,000 crores 2-3 years backward integrated. Atul: Indian IT market $12-13B, 4-5% disability cover via display/mechanicals/SSD/power supply. INR 1,500-2,000 crores possible. India can become hub for IT exports in 4-5 years like mobile. Pankaj: Internal cash flows adequate for stated growth, but if large opportunity comes - might look. 1 lakh crore aspiration.

Analyst ·

Growth modeling; 1 lakh crore target

Atul: Mobile addressable still has room. Backward integration deepens moat. New verticals telecom + IT. Lighting JV. Refrigerator 1.2 to 1.7 to 2.5M. Front loaders, dishwashers, microwaves. Saurabh: 1 lakh crore confident. Margin path 70-80 bps uptick to 4-4.5% from current 3.7-3.8%.

Analyst ·

Promoter holding decline; battery energy storage

Atul: Combined promoter+family+myself 42%+. No more dilutions. Saurabh: Lithium-ion battery focus mobiles captive. Advanced discussions technology partner. ECMS application submitted. Ismartu lead, Transsion brand company.

Analyst ·

Global market expansion regions

Atul: Transsion - Africa and Latin America. Other anchor relationship - US. Won't name countries on shifting.

Analyst ·

HKC EBITDA uplift; Q Tech FY26 revenue

Atul: Margins mid to high teens. 60M peak: $600M mobile + $100M laptop + $60M TV + automotive. Total $800-900M aspiration 2-3 years. Saurabh: Q Tech double-digit growth FY26. Capacity expansion takes time. 40M to 190-200M in 2.5-3 years.

▸ Prepared remarks (3 blocks)
We thank you all for taking time to join us to discuss our performance for 2nd Quarter FY25-'26. Consolidated adjusted revenues for the quarter ended September 30, 2025, was INR <strong>14,858 crore</strong>s as against INR 11,528 crores in the same period last year, and that is a growth of 29%. Consolidated adjusted EBITDA for the quarter was INR 564 crores against INR 420 crores in the same period last year, a growth of 34%. Consolidated adjusted PAT for the quarter was INR 323 crores against INR 236 crores in the same period last year, growth of 27%. As you would be aware, the announcement of the reduction in GST rates in mid-August led to a significant postponement of purchases across the trade and consumer channels. Between August mid and 21st September, most customers and retailers deferred buying decisions in anticipation of the lower post cut prices. Although demand began to normalize after the new GST rate came into effect on September 22, the short window of 9 days before the quarter end was insufficient to fully recover the deferred volumes. As a result, our Q2 top line reflects this time distortions specifically by the TVs, refrigerators and washing machines. In the first phase of a 74:26 JV with HKC for display modules, we are creating a capacity of 24 million per annum for smartphones and 2 million units per annum for notebooks, which would be for 76% of captive consumption. In the second phase, we will enhance this capacity to 60 million units per annum for smartphones, which will account for almost 80% of the captive consumption. And we will also foray into display for LED TVs and automotive with a capacity of 2 million and 1 million units per annum, respectively. The margins in this segment will be in higher double digits.
We acquired 51% stake in Q Tech India and have started consolidating the financials from 26 September '25. We feel confident that the volume of smartphone camera modules can increase from 40 million units and revenues by INR 2,000 crores in last financial years to 190 to 200 million units per annum with the revenue closer to INR 6,000 crores to INR 7,000 crores and sub-10% EBITDA margins in the next two to three years. We have filed a components ECMS applications for display modules, camera module enclosures, lithium-ion batteries, optical transceiver - SFP and also mechanical enclosures with investment commitment of approximately INR 3,000 crores over the next three years. Mobile and EMS revenue INR 13,361 crores (+41% YoY), op profit INR 472 crores (+53%). PN3 received for 74:26 JV with Longcheer; new 400,000 sq ft facility operational by April '26. PN3 process for Vivo and HKC progressing well, expect approvals in coming weeks. Active discussion with another large ODM of smartphones - manufacturing should start by Q4 of FY 25-26. Telecom INR 1,635 crores (+148%) - secured significant order from US telecom for backhaul microwave radios, integral part of RAN. Production cater to global demand from Q4. IT hardware INR 331 crores (+481%). Successfully shifted Acer Noida to Chennai. Lightanium operations started August '25. Pilot order from top US retail chain executed October first week. Pilot from biggest retail chain Germany expected this quarter.
Q2FY26 (adjusted): Revenue INR <strong>14,858 crore</strong>s (+29% YoY). EBITDA INR 564 crores (+34%). PAT INR 323 crores (+27%). Working capital negative 6 days. Net debt INR 203 crores. ROCE 49.1%, ROE 34.3%. Smartphone Q2 volumes part of 20M done in 6 months. Total H1 PLI income INR 290 crores; Q2 INR 150 crores. Q2 mark-to-market gain on 6.5% Aditya Infotech stake (one-time). CAPEX H1 INR 550 crores. ECMS investment commitment INR 3,000 crores over 3 years. HKC second phase capacity: 60M smartphones + 2M LED TV + 1M automotive displays. Q Tech consolidation from 26 Sep '25. ODM share in TVs increased to 65%.
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