Dixon Tech shares rally 5% amid reviews of presidency nod for Vivo JV this month
In line with a PTI report, an inter-ministerial panel has given in-principle approval to the deal, and MeitY will clear it after due course of. The deal for a three way partnership was signed between the 2 corporations in December 2024, through which Dixon Applied sciences would be the majority shareholder with a 51% stake.
The three way partnership will give attention to manufacturing digital gadgets, together with smartphones. Vivo’s manufacturing unit in Noida is prone to change into a part of the proposed JV, which can scale back the corporate’s danger publicity to India.
The ability will undertake a part of Vivo’s authentic gear manufacturing (OEM) orders for smartphones in India. It is going to additionally have interaction within the OEM enterprise of assorted digital merchandise for different manufacturers.
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Presently, Vivo enjoys a dominant place within the Indian smartphone market. The Chinese language smartphone firm is estimated to have bought 3.5 crore handsets in 2025, whereas Dixon’s cell phone manufacturing quantity was round 3.2 crore items.
Final week, the corporate’s subsidiary, Dixon Electroconnect, entered into an settlement with Gemtek Know-how to kind a three way partnership in India for manufacturing and supplying optical transceivers and different telecom merchandise.In line with the corporate, the proposed enterprise will manufacture and provide Optical Transceiver-SFP (Small Kind-Issue Pluggable), BOSA (Bidirectional Optical Subassembly), and different telecom merchandise that the events mutually agree upon.
The proposed transaction will use a mutually agreed construction the place Dixon Applied sciences will maintain 60% of Dixon Electroconnect’s complete paid-up share capital, whereas Gemtek will maintain the remaining 40% stake upon completion.
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Dixon Tech This autumn snapshot
Dixon Applied sciences reported a consolidated internet revenue of Rs 256 crore within the March-ended quarter versus Rs 401 crore within the year-ago interval, implying a 36% fall. The revenue after tax (PAT) was attributable to the corporate’s house owners. The corporate’s income from operations in Q4FY26 was up 2% to Rs 10,511 crore versus Rs 10,293 crore posted within the corresponding quarter of the earlier monetary 12 months.
In the meantime, the corporate’s complete revenue grew 3% year-on-year to Rs 10,595 crore versus Rs 10,304 crore in Q4FY25. It included different revenue of Rs 84 crore in comparison with Rs 11 crore within the year-ago interval.
Dixon Tech shares are down 10% within the final 1 12 months and about 20% within the final 1 month.
(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions)
