Dixon Tech jumps on reports of likely approval for Vivo joint venture

Dixon Technologies (India) surged 4.78% to Rs 12,820 after reports indicated that the government may soon approve the company's proposed joint venture with Chinese smartphone maker Vivo.

According to media reports, an inter-ministerial panel has granted in-principle approval to the partnership, with the final clearance expected from the Ministry of Electronics and Information Technology (MeitY) after completion of the required process.

The proposed venture is expected to focus on manufacturing smartphones and other electronic devices in India. Reports suggest Vivo's manufacturing facility in Noida could be brought under the joint venture structure, helping the company strengthen its local manufacturing presence.

The facility is likely to handle a portion of Vivo's smartphone production requirements in India and may also undertake contract manufacturing for other electronics brands.

The development could significantly enhance Dixon's position in the electronics manufacturing services (EMS) space. Vivo is among the country's largest smartphone brands, with estimated handset sales of around 3.5 crore units in 2025, while Dixon produced approximately 3.2 crore mobile phones during the period.

During the company?s Q4 earnings call, Dixon managing director and CEO, Atul Lall, said the company was deeply engaged with the government and remained very, very close to securing approvals for its proposed partnership with Vivo. He added that Vivo sold around 35 million units last year and the proposed JV could add around 20-22 million units annually over time.

Dixon Technologies (India) reported a 35.91% decline in consolidated net profit to Rs 297.97 crore on a 2.12% increase in revenue from operations to Rs 10,510.51 crore in Q4 FY26 over Q4 FY25.

In Q4 FY26, revenue from the Mobile & Other EMS division stood at Rs 9,485 crore (up 4.21% YoY), while Home Appliances division was at Rs 329 crore (up 8.94% YoY), and Consumer Electronics & Appliances (LED, TV & Refrigerator) division stood at Rs 697 crore (up 1.16% YoY).

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