News ArticleDixon Technologies posts INR 21,806 crore revenue in Q2 FY27, expands advanced electronics manufacturing capabilities
Stable mobile volumes despite 26% market decline; exports ramp-up expected from Q4 with new partnerships and facility expansions
Dixon Technologies (India) Limited reported Q2 FY27 revenues of INR 21,806 crores and EBITDA of INR 609 crores, with stable mobile volumes despite market challenges. The company highlights strategic advancement into display and camera modules and plans to expand its presence in AI infrastructure components, targeting exports and new partnerships from Q4 onwards.
Dixon Technologies (India) Limited
Earnings Call Transcript
Dixon Technologies (India) Limited announced its Q2 FY27 financial performance reporting revenues of INR 21,806 crores and EBITDA of INR 609 crores. Despite a 26% decline in India's smartphone market, the company's mobile manufacturing volumes remained stable, signaling operational resilience. The firm highlighted strategic initiatives including entry into display and camera modules, and manufacturing of silicon photonics and packaging solutions to tap into AI infrastructure growth.
Revenues for the quarter ended September 30, 2026, reached INR 21,806 crores, while EBITDA excluding fair value gains on its stake in Aditya Infotech Limited was INR 609 crores. The Profit After Tax (PAT) after minority interest and excluding fair value gains stood at INR 293 crores.
Margins were impacted by the expiry of the mobile Production Linked Incentive (PLI) scheme and elevated global memory prices due to AI infrastructure expansion, which led to higher input costs and pricing pressures in mobile and IT hardware segments.
Mobile business volumes remained resilient and broadly stable year-on-year despite a 26% market decline, supported by strong customer relationships and execution. Export volumes are expected to ramp up significantly starting Q4, including exports of feature phones and smartphones for Transsion Group from next fiscal year.
The company reported temporary profitability pressures in washing machines and refrigerators due to polymer price fluctuations, rising freight costs, foreign exchange movements, and other input costs, with improvement expected from cost pass-through and operational efficiencies.
Strategic advances into display modules, camera modules, mechanicals, and high-end electronics manufacturing services are underway to deepen integration and add value domestically, aligned with government's ISM 2 policy framework for electronics manufacturing in India.
Highlights
- Q2 FY27 revenue stood at INR 21,806 crores, with EBITDA (excluding fair value gains) of INR 609 crores and PAT of INR 293 crores.
- Mobile phone manufacturing volumes remained broadly stable year-on-year despite a 26% decline in India's smartphone market in Q2 FY27.
- Exports for anchor customer expected to ramp up significantly from Q4; exports of Transsion Group's feature phones and smartphones anticipated from the next fiscal year.
- Construction of a 1 million sq ft Noida facility near completion, expected to commence operations in Q3 FY27.
- Longcheer joint venture expected to start operations from Q3 FY27, with exploration into expanding product categories.
- Strategic focus on manufacturing silicon photonics optical transceivers and advanced packaging to capture AI infrastructure and hyperscale data center opportunities.
Key Data Snapshot
What happened
- Dixon Technologies reported Q2 FY27 revenues of INR 21,806 crores and EBITDA of INR 609 crores excluding fair value gains.
- The company sustained stable mobile manufacturing volumes despite a significant market decline of 26% in India's smartphone segment.
- Exports for key customers are expected to increase substantially from Q4 FY27, including new exports from the Transsion Group in the next fiscal year.
- Margins were pressured due to higher input costs and expiry of the mobile PLI 1 scheme but cost pass-through initiatives are underway.
- The company is expanding its product portfolio into critical components like display and camera modules and entering high-end electronics manufacturing segments tied to AI infrastructure and hyperscale data centers.
Key details
- Mobile business revenues stood at INR 20,093 crores with operating profit of INR 509 crores in Q2 FY27.
- Construction of a new 1 million square feet facility in Noida nearing completion with expected start of operations in Q3 FY27 to augment capacity.
- Longcheer joint venture expected to commence operations in Q3 FY27, with plans to explore adjacent product categories.
- Challenges in washing machine and refrigerator segments caused by polymer price volatility, freight costs, forex fluctuations, and input prices.
- The government’s Mobile Phone Manufacturing Scheme (MPMS) presents growth opportunities, including consolidating Vivo's operations beginning Q4.
Strategic context
- Dixon is enhancing domestic value addition and supply chain resilience by integrating display modules, camera modules, and mechanical components.
- The company is progressing into manufacturing silicon photonics optical transceivers and advanced packaging to serve AI infrastructure and next-generation electronics markets.
- These initiatives align with India's ISM 2 government policy aiming to boost advanced technology manufacturing ecosystems.
- Focus on shifting from an EMS provider to an integrated electronics manufacturing player to capture higher margins and create a sustainable growth moat.
Highlights
- Q2 FY27 revenue stood at INR 21,806 crores, with EBITDA (excluding fair value gains) of INR 609 crores and PAT of INR 293 crores.
- Mobile phone manufacturing volumes remained broadly stable year-on-year despite a 26% decline in India's smartphone market in Q2 FY27.
- Exports for anchor customer expected to ramp up significantly from Q4; exports of Transsion Group's feature phones and smartphones anticipated from the next fiscal year.
- Construction of a 1 million sq ft Noida facility near completion, expected to commence operations in Q3 FY27.
- Longcheer joint venture expected to start operations from Q3 FY27, with exploration into expanding product categories.
- Strategic focus on manufacturing silicon photonics optical transceivers and advanced packaging to capture AI infrastructure and hyperscale data center opportunities.
Disclosures
- Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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