Dixon Technologies (India)

“We feel that for that customer, next year, we should be doing almost 8 to 10 million.”

“So Quarter 3 being post-Diwali time, I think it is going to be somewhere in the range of around 7 to 7.5 million.”

“So assuming that next financial year, we will target to get at least 25-30% of that INR 7,000 crores.”

“So, as far as the volumes are concerned, as we mentioned that in this year we should close somewhere between 33 to 34 million without Vivo.”

“So we did 17 million, and we are expecting broadly a similar number in next 6 months.”

“The first phase covering automotive and notebook displays is expected to commence trials in Q3, followed by mobile display trials in Q4, with mass production targeted to begin from the next fiscal year.”

“The trial is going to happen by December and the commercial production will start by Q4.”

“Our new facility in Chennai started commercial production on August 26th with expanded capacities to meet increased demand for our end customers.”

“We have already expanded our capacities from 80 million to 120 million annually, along with deepened manufacturing, which is margin accretive, and will further expand its capacity to 180 to 190 million units annually by next fiscal.”

“This takes our total capacity to 3.9 million units against an estimated annual Indian requirement of 12 million units.”

“I shared about expanding our capacity from 1.4 million units to almost 3 million units in refrigerators, expanding the product portfolio from just direct cools.”

“Beyond laptops and all-in-ones in our Chennai facility, we have installed capacities for desktops with production starting in Q3 of this fiscal.”

“So, the lines for SSD has already been set up. The trials by the customers of our SSD solutions have been operationalized.”

“We have received a large order for tablets from one of our existing customers under the UP government scheme in a Noida facility.”

“And to start with, already the order book is there for the microwave radios. It will be focusing on the markets of U.S.”

“Export volume for our anchor customer expected to ramp up meaningfully from Q4 with further growth anticipated along with exports of feature phones and smartphones for Transsion Group brands from the next fiscal.”

“Revenue for the quarter was Rs. 20,093 crores with an operating profit of Rs. 509 crores.”

“Telecom and networking products. Revenues for the quarter was INR 1,837 crores.”

“Production of complex microwave backhaul radios for large global brands has scaled up successfully, and we also expect to export the same during the current fiscal.”

“Additionally, we will be adding complex optical platforms and industrial radio products to our portfolio starting next fiscal years.”

“Despite a challenging industry environment, with India's smartphone market declining by 26% year-on-year in Q2 FY '26-'27 according to industry reports, Dixon has demonstrated resilience by sustaining its smartphone manufacturing volume at broadly stable year-on-year levels.”

“The lighting industry has experienced a challenging operating environment, the subdued demand and pricing pressures.”

“We believe the current demand is cyclical rather than structural and Dixon remains well positioned to benefit as industry volumes normalize.”

“LED TVs demand in value and mid-range remains soft, impacted by sharp input cost inflation driven primarily by global memory supply tightness.”

“So, Sonali, basically if you look at the volume growth, so year-on-year the volume has been slightly marginally lower.”

“Margins during the quarter were impacted on expiration of mobile PLI 1 scheme along with elevated global memory prices due to rapid expansion of AI infrastructure.”

“Profitability in washing machine and refrigerator was temporarily affected by fluctuations in polymer prices, rising freight costs and transit time, unfavorable foreign exchange movement, and higher cost of other key inputs. These pressures are expected to ease as cost pass-through initiatives gain traction and operational efficiencies progressively strengthen.”

“But in our ODM solutions, specifically when you are talking about lighting, refrigerators, and washing machines and a bit of our television business, in this, there is some lag.”

“So, I reiterate that in a complete EMS business, it is an automatic pass-through.”

“So, our year-on-year increase in selling prices is almost closer to 35-40%.”

“So that number is also the PLI receivable for this particular year for the first 6 months, and also the PLI is pending for last year.”

“So, we feel that out of this large part of money which is blocked at the money working capital, we feel that almost 80-85% of that will get released before March.”

“even next year we should be completely meeting our CAPEX requirements from internal accruals and yet generating some free cash flows.”

“We expect a significant reversal. So of course, you are absolutely right, we had kept certain strategic inventories of memory. This is also peak season for us.”

“We had certain advances from our customers in March which subsequently got paid. Also the PLI money which is there for our IT hardware and the telecom business, which is there, which ultimately will come in, will get realized.”

“As India builds its advanced technology manufacturing ecosystem, Dixon aims to be among the first of the Indian companies to establish capabilities in these segments through strategic acquisitions or partnerships.”

“Beyond our established business in component integration initiatives, we are actively evaluating opportunities to build a high-end specialized EMS business with focus on higher margin, low volume product categories with the strong economics and superior margins.”

“Consolidation of Vivo operations is expected to commence from Q4, with significant volumes anticipated for the next financial year.”

“Longcheer JV is expected to commence operation with Q3 of the current financial year.”

“This JV positions us to capture a share of the growing demand in telecom and data center segments and is expected to commence operations in Q4 of this fiscal.”

“So, cost undoubtedly have significantly increased, and we feel that they are going to be on a higher plane for time to come. But as far as the production and supply is concerned, we are fine.”

“Revenues for the quarter ended September 30, 2026 was INR 21,806 crores.”

“EBITDA excluding fair value gain on the stake held by Dixon in Aditya Infotech Limited for the quarter was INR 609 crores.”

“PAT after minority interest and excluding fair value gain on the stake held by Dixon and Aditya Infotech Limited for the quarter was INR 293 crores.”

“Please appreciate the incremental requirement over baseline in MPMS is INR 5,000 crores every year.”

“So, responding to the first part of question on difference in the ASP, the difference is between 25 to 30%.”