Below is the analysis of the company engaged in offering electronic Manufacturing Services and has delivered a multi-bagger return of 1,405 percent in the past 5 years and also announced strong capex and future prospects for its business, which is broken down below
Overview
Dixon Technologies (India) Limited, incorporated in 1993, is an Electronic Manufacturing Services (EMS) company with operations in the electronic products vertical, such as consumer electronics, lighting, home appliances, closed-circuit television cameras (CCTVs), and mobile phones. It also undertakes reverse logistics operations.
Dixon is currently trading 23.3 percent less than its 52-week high of Rs.19,148.90. And the company’s previous 52-week low stands at Rs 8,453.00; on average, the stock has given a Return of 71.08 percent CAGR in the past 5 years.
The company has consistently demonstrated strong growth in net profits throughout the past 5 years. The net profit increased at a CAGR of 59.35 percent, rising from Rs 120 crores in FY20 to Rs 1,233 crores in FY25, and its revenue have grown at a CAGR of 54.60 percent in the past 5 years from Rs 4,400 crores in FY20 to Rs 38,860 crs in FY25
SEGMENTAL PERFORMANCE AND FUTURE PLANS
Mobile Phones
Dixon Technologies’ mobile phone segment delivered exceptional performance in Q4, with revenues surging 194 percent YoY to Rs 9,102 crore and EBIT rising 232 percent YoY to Rs 349 crore, with a margin of 3.8 percent.
It is witnessing strong order flows from key clients, including Xiaomi, Longcheer, and Ismartu (brands like ITEL, Infinix, Tecno, and Nothing), with a growing export focus, particularly to North America and Africa. A new partnership with NxtCell for the French brand Alcatel adds to this growth
Consumer Electronics (LED TVs & Refrigerators)
In the Consumer Electronics segment, Dixon’s LED TV business reported Q4 revenue of Rs 689 crore with an EBIT of Rs 42 crore and a margin of 6.1 percent, though revenues faced pressure due to structural issues in the category and some market share loss.
To counter this, the company is taking strategic steps, including expanding into new product areas (like IFPDs and educational TVs), backward integration, cost optimization, ODM migration, and collaborations with OS platforms like Amazon Fire TV and LG WebOS. Investments are being made in CKD operations and robotic panel assembly, with an eye on B2B and industrial display markets.
In refrigerators, onboarding over 15 customers, Dixon had a strong debut, capturing approximately 8 percent of the Indian market and 48 percent of the OEM addressable market in the direct cool segment, Capacity is being ramped up from 1.2 million to 2 million units annually, with new product entries planned across the cooling category. A robust FY26 order book supports the company’s expectation of 50 percent growth, with sustainable margins in the 9.5–10.5 percent range under its ODM model.
Home Appliances
In the Home Appliances segment, Dixon reported Q4 revenue of Rs 302 crore with an EBIT of Rs 37 crore, achieving a strong margin of 12.2 Percent. This margin expansion was driven by increased scale, value engineering, cost optimization, innovation, and value-added offerings. The company is expanding capacity at its Tirupati plant and gearing up for new product launches, including industry-first semi-automatic washing machines (16/18 kg), front-load washing machines, robotic vacuum cleaners, and new ODM designs scheduled for launch in Q2 FY26.
Lighting
In the Lighting segment, as of Q4, it made a revenue of Rs 200 crore with an EBIT of Rs 15 crore, reflecting a margin of 7.3 percent. It also signed a 50:50 joint venture with Signify is set to commence in Q2 FY26, with definitive agreements expected by May 2025.
This JV aims to drive operating leverage, create synergies, enable entry into the high-end and professional lighting market, and open up export opportunities. Additionally, backward integration has been operationalized to drive cost efficiency and support margin improvement.
Telecom & Networking Products
In the Telecom & Networking revenue of Rs 1,288 crore nearly 5x growth YoY. Its new Noida facility is operating at optimal utilization, with capacity for 5G fixed wireless access devices now doubled. The company is ramping up production of IPTV boxes, with a new model slated for launch in Q2 FY26. Backward integration efforts are progressing, with localized castings, moldings, and adapters already in place and further localization underway.
Laptops & Tablets (IT Hardware)
In the Laptops & Tablets (IT Hardware) segment, Dixon has begun mass production for HP and ASUS at its dedicated Chennai facility, with Lenovo at 30,000 units/month. A 60:40 JV with Inventec will focus on notebooks, PCs, servers, and components, with operations based adjacent to the current facility in Chennai
Wearables & Hearables
In the Wearables & Hearables segment, Dixon reported Q4 revenue of Rs 196 crore, supported by a healthy operating model and strong ROCE. The company is expanding its product portfolio with a focus on backward integration and localization. Its JV with Rexxam contributed Rs 121 crore in Q4 revenue, with a new Chennai facility finalized for the anchor customer to support future growth.
Other Capacity expansion
Dixon plans a capex of Rs 900 crore in FY25, with FY26 guidance at Rs 900–1,000 crore, backed by strong cash flows and available credit lines. Its investments are focused on expanding capacity, driving backward integration, and entering new product categories to support long-term growth.
Industry projections and opportunities for Dixon
In the mobile segment, India’s market is around 150 million units, with 90 million units available for outsourcing. Dixon maintains strategic partnerships with major brands except Samsung, where it has a different arrangement. The company aims to export 10–12 million units in FY26,
Targeting North America and Africa, with significant growth potential in exports. The TV segment faces structural challenges and shifting consumer preferences, impacting demand and Dixon’s market share; the company is addressing this through product diversification, ODM migration, and cost optimization. In refrigerators and appliances, Dixon is experiencing strong growth and margin improvement driven by new categories, capacity expansion, and a 100 percent ODM model supporting sustainable margins.
Written By Likesh Babu S
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