Synopsis
Shares of Dixon Technologies rose sharply on Wednesday after reports suggested the government could approve its long-pending joint venture with Vivo this month. The proposed joint venture, in which Dixon will hold a majority stake, is expected to strengthen India’s smartphone manufacturing capabilities while reducing Vivo’s regulatory risk exposure in the market.
ETMarkets.comThe joint venture will focus on manufacturing electronic devices, including smartphones.Stocks of a technology company Dixon Tech surged 5 per cent to its day high of Rs 12,860 on the BSE on Wednesday after reports claimed that the government is likely to clear the long-pending Dixon-Vivo joint venture this month, which will reduce the Chinese mobile phone firm’s risk exposure in India.
According to a PTI report, an inter-ministerial committee has given in-principle approval to the deal, and MeitY will clear it after due process. The joint venture agreement was signed between the two companies in December 2024, of which Dixon Technologies will be the majority shareholder with a 51% stake.
The joint venture will focus on manufacturing electronic devices, including smartphones. Vivo’s manufacturing unit in Noida is likely to be part of the proposed joint venture, which will reduce the company’s risk exposure in India.
The factory will support a portion of Vivo’s original equipment manufacturing (OEM) orders for smartphones in India. It will also engage in OEM business of various electronic products for other brands.
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Currently, Vivo has a dominant position in the Indian smartphone market. The Chinese smartphone company is estimated to have sold 3.5 crore handsets in 2025, while Dixon’s mobile phone production volume was around 3.2 crore units.
Last week, the company’s subsidiary, Dixon Electroconnect, entered into an agreement with Gemtek Technology to form a joint venture in India for the manufacturing and supply of optical transceivers and other telecommunications products.
According to the company, the proposed business will manufacture and supply SFP (Small Form-Factor Pluggable), BOSA (Bidirectional Optical Subassembly) optical transceivers and other telecommunications products as mutually agreed upon by the parties.
The proposed transaction will use a mutually agreed structure in which Dixon Technologies will hold 60% of the total paid-up share capital of Dixon Electroconnect, while Gemtek will hold the remaining 40% once completed.
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Dixon Tech Q4 OverviewDixon Technologies reported a consolidated net profit of Rs 256 crore in the quarter ended March, compared to Rs 401 crore in the year-ago period, implying a decline of 36 per cent. Profit after tax (PAT) was attributable to the owners of the business. The company’s operational revenue in Q4FY26 increased by 2% to Rs 10,511 crore as against Rs 10,293 crore posted in the corresponding quarter of the previous fiscal.
Meanwhile, the company’s total revenue grew 3% YoY to Rs 10,595 crore from Rs 10,304 crore in Q4 FY25. It included other revenues of Rs 84 crore from Rs 11 crore a year ago.
Dixon Tech shares are down 10% over the past year and about 20% over the past month.
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