Dixon Technologies is actively diversifying its business beyond its core smartphone manufacturing, targeting high-growth sectors such as aerospace, defense, automotive, medical, and industrial electronics. This strategic shift, highlighted by CFO Saurabh Gupta in the FY26 annual report, aims to transform Dixon into a globally competitive, engineering-led manufacturing platform with potential revenue in these specialty electronics manufacturing services (EMS) verticals reaching $360-$480 million (₹3,000–4,000 crore) and significantly higher operating margins. The company is evaluating both organic and inorganic growth opportunities, with some transactions potentially materializing in FY27.
Alongside this diversification, Dixon is also scaling its existing component businesses and expanding into new areas. Camera module capacity is set to increase significantly from 70 million to 180–190 million units annually, with revenue projected to rise from $204 million (₹1,700 crore) to $300 million (₹2,500 crore). A 60:40 joint venture with Taiwan’s Gemtek for optical transceivers and exploration of enterprise server/data-center hardware opportunities further underscore this expansion. Its display module JV (74:26 with HKC) is expected to begin commercial production in Q4FY27, with Phase I capacity of 24 million mobile displays and 2.4 million automotive/IT displays, eventually scaling to 50–55 million mobile displays, generating $660-$720 million (₹5,500 – 6,000 crore) revenue at optimal utilization with double-digit margins.
The telecom and IT hardware segments are expected to be major growth drivers. Nuvama Institutional Equities projects Dixon’s telecom business revenue to increase by 40-50% in FY27, reaching $780-$840 million (₹6,500–7,000 crore), with the joint venture with Bharti Airtel playing a crucial role. The IT hardware segment is anticipated to see substantial growth, with revenue potentially increasing nearly fourfold in FY27 to approximately $720 million (₹6,000 crore). Overall, Dixon's management expects telecom and networking revenue to increase from $600 million (₹5,000 crore) in FY26 to $900-$960 million (₹7,500–8,000 crore) in FY27, with total FY27 revenue guidance at approximately $6.72 billion (₹56,000 crore), excluding the Vivo JV.
While Nuvama maintained a 'Hold' rating, it raised its target price to $14,800 from $13,700, citing the expanding component business and growth prospects in telecom and IT hardware. However, it lowered its FY27 earnings estimates by 7% due to continued weakness in the smartphone industry and a delay in the start of operations for its joint venture with Vivo. The Vivo JV, which received government approval in July 2026, involves Dixon investing $306,000 (₹2.55 crore) for a 51% stake in Adivistar Electronics India, with Vivo holding 49%. Commercialization of this JV is now expected in Q3 FY27 instead of October 2026.
