← Throughline · holding view Deep analysis ↗ Q3 FY26
DIXON Dixon Technologies (India) Limited · Consumer durables Q3 FY26 · concall
Pattern: q3 mobile fy26 27

Q4FY26 anchors PLI sunset reality + memory-driven flat FY27 mobile volumes.

2 deflections · 1 weak · 10 clean — pushback across 3 of 13 Q&A turns

Focused evidence 3 of 13

Analyst · deflection

Q3 cell phone volumes; FY26/FY27 vs guidance; Vivo delay; margins

Saurabh: Q3 6.9M, 9 months 27M. Atul: Q4 7-7.5M. FY27 numbers being worked out, situation fluid because of memory prices. Close to government approval Vivo - premature to comment on FY27 number. Saurabh: Mobile margins 3.5%, PLI 0.5-0.6% share. PLI renewal uncertain. Atul: Discussions on, positive response, not absolute certainty. Saurabh: Worst case 0.5% margin impact, backward integration overcomes. FY27-28 absolutely confident decent margin expansion via component play. Atul: Display building ready, equipment at port, June/July trials/commercial production.

Analyst · deflection

PN3 plan B; December volumes; market share loss

Atul: Confident Vivo approval coming. Saurabh: Not on plan B. Q3 6.8M last quarter (Q3 6.9M opening). Memory price impact mainly on low/mid-end. Won't share which brands declined. One anchor customer started another EMS but Dixon numbers grown vs LY, lion's share. Saurabh: Anchor numbers grew.

Analyst · weak

FY27 Q1 visibility; H1 EBITDA growth

Atul: Memory supply availability question; brands no clarity. Wait 2-3-4 weeks. Atul: H1 FY27 growth in spite of challenges - working on numbers.

▸ Other Q&A (10)
Analyst ·

Memory price impact on OEMs; camera module customers; margin scenario

Atul: Pass-through for us, no impact on margins on absolute basis. Demand mid/lower segment concern. Q Tech supplies Motorola - positive response for expanded relationship. Vivo, Samsung, Oppo, all Android brands. Camera module market $350-400M largely imported. Atul: Margin 2.8-3.1%, 3.2% mobile business. 6-8 months component integration, 70-80% of business integrated by FY28. Without PLI scenario.

Analyst ·

Ismartu disclosure; component story risk if mobile weak; Vivo 20M FY27

Atul: Ismartu consolidated as part of mobile business. No specific reason. Conservative basis 60-65M units even FY28. 160-170M camera, 40-50M displays, 1.5-2M notebook displays, 2M automotive. Saurabh: Some brands deep export discussions. 5-6 months component ramp. Vivo subject to approval timing - 45-60 days post approval to consummate.

Analyst ·

New global ODM status; export traction; EU FTA

Atul: New customer discussions on, conclude Q1FY27. Motorola exports 9 months INR 4,000-4,500 crores; FY26 INR 5,500-6,000 crores; FY27 similar run rate. Other partner exports 2G then 4G/5G - new Tirupati capacity. Phones no tariffs - EU FTA not helping mobile but lighting and TVs.

Analyst ·

PLI receivable amount; long-term growth levers

Saurabh: Number not on hand, share separately. Mobile PLI till Sep '25 received. Similar run rate, no unusual delays. Atul: Mobile triggers - Vivo, new customers, display/camera deepening. IT hardware ramp + AIOs/desktops/tablets/printers + Inventec SSD/memory + servers. Telecom INR 5,200 crores - largest CPE, US backhaul radio, ECMS SFP/optical transceivers. Lighting Signify consolidation, premium products. Washing machine front loaders 300K. Refrigerator 1.2→1.8→3M, 50L/100L launched, side-by-side, deep freezers. Industrial EMS senior resource. Atul: Mobile no tariff impact.

Analyst ·

Longcheer JV ramp

Atul: PN3 received. JV agreement signing second week February. 400,000 sq ft factory under construction. Q1FY27 end operational. Initial 18M units. Discussions on IoT devices and smart glasses.

Analyst ·

Lighting commentary repeat; EU FTA opportunity

Atul: Signify JV exceptional results, double-digit revenue growth, deepening localization. Market share LED bulbs/battens/downlighters. Smaller players struggling. Premium tech-led lighting. Export potential Europe/UK/UAE/US. Waiting fine print but tariffs lighting and LED TVs going to ~0 - capture EU.

Analyst ·

FY26/FY27 CAPEX; IT hardware revenues

Atul: 9 months INR 720 crores. FY26 INR 1,100-1,200 crores. Vivo acquisition number confidential, balance sheet adequate. IT hardware FY26 INR 1,500 crores; FY27 INR 3,500-4,000 crores. Order book very healthy. Industrial - automotive and industrial electronics not energy meters.

Analyst ·

HKC PN3 contingency; Ismartu Africa exports

Atul: Construction not contingent on PN3. Building handed over. Equipment at port. Confident PN3 + ECMS comes. Worst case 100% subsidiary - no impact on plant operation. Ismartu exports started 1.2-1.5M, building large footprint down south.

Analyst ·

Pass-through timing; Longcheer transition; FY26 CAPEX split

Saurabh: Immediate pass-through, no time lag. Currency/commodity passed on. Saurabh: Business continues as-is, Q2 moves to JV (74:26). FY26-27 8-10M units. Saurabh: Display CAPEX INR 1,100-1,200 crores across smartphone/automotive/IT/TV. Q Tech INR 250-300 crores. Battery numbers not worked out. Atul: SFPs INR 50 crores. Mechanical enclosures INR 50-60 crores. FY27 budget being worked out.

Analyst ·

INR 1 lakh crore target intact; growth segments

Atul: Optimistic, aggressive, plans + JVs in place. Saurabh: Supply disruptions don't change overall outlook. Atul: Mobile largest, IT hardware margin upside, component play, telecom equipment, appliances expanding, lighting, industrial EMS new categories.

▸ Prepared remarks (3 blocks)
We thank you all for taking the time to join us to discuss our performance and progress for third quarter financial year '25-'26. Consolidated operating revenues for the quarter ended December 31, 2025, was INR<strong>10,678 crore</strong>s against INR10,461 crores in the same period last year. Consolidated operating EBITDA for the quarter was INR421 crores against INR398 crores in the same period last year. Consolidated operating PAT for the quarter was INR214 crores against INR217 crores in the same period last year. While the electronic market faces near-term headwinds from commodity inflation and memory price increase, we continue to focus on building scale, bringing operational efficiency, strengthening relationship with customer, focusing on backward integration and diversification around the core electronics business to navigate the environment. One important external headwind is a sharp increase in memory prices globally driven by AI and data center demand, reallocating the memory capacity away from traditional consumer devices. Industry reports indicate that conventional DRAM contract prices have already risen sharply over the last 2 quarters with further increases expected in mid-2026. For smartphones and PCs, memory has moved from being a relatively small line item to one of the most sensitive parts of the bill of material, especially for the lower priced devices.
Dixon has been selected as an ECMS beneficiary for camera modules and optical transceivers, marking an important milestone in our expansion into components manufacturing and reinforcing our strategy to move up the electronics manufacturing value chain. We expect to receive ECMS approvals for display modules and enclosures shortly. We have built a strong foundation as India's leading homegrown EMS company. And now we are steadily transforming into a more integrated design-oriented component manufacturing partner across consumer, industrial and strategic electronics. Mobile and EMS revenue INR <strong>9,750 crore</strong>s. Indian smartphone market Q3 fell by 7% YoY due to elevated channel inventories, depreciating rupee, softening mass market affordability and supply constraints / rising memory cost. Brands struggling with global memory super cycle - top suppliers shifting capacity for AI applications. New Longcheer JV facility 4,000 square feet expected operations Q2FY27. 1 million square feet Noida facility for anchor customer expected completion Q1FY27, mass production Q2FY27. HKC display construction nearing completion. Q Tech expanding capacities to 190-200M from 40M. Started manufacturing complex telecom backhaul microwave radios for US telecom brand. Selected as ECMS beneficiary for optical transceivers - manufacturing next fiscal. Inventec JV near completion - SSD and memory modules mass production planned Q2FY27. In deep discussions with JV partner for servers.
Q3FY26 (operating): Revenue INR <strong>10,678 crore</strong>s (vs INR 10,461 LY +2%). EBITDA INR 421 crores. PAT INR 214 crores. Working capital negative 7 days. Net debt INR 246 crores. ROCE 45.1%, ROE 32%. Smartphone Q3 volumes 6.9 million (decline). 9 months total 27 million. Q4 expected 7-7.5 million. Mobile margins 3.5% (PLI 0.5-0.6%). Q Tech Q3 revenue INR 400 crores. CAPEX 9 months INR 720 crores; full year INR 1,100-1,150 crores. Display CAPEX INR 1,100-1,200 crores; Q Tech INR 250-300 crores; SFPs INR 50 crores; mechanical enclosures INR 50-60 crores.
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