Dixon Tech’s bet on smart growth pays off with a jump in profits

In 1993, when India began to shrug off the shackles of the Licence Raj, a fledgling manufacturing unit in Noida started assembling televisions. It would go on to script one of the most remarkable growth stories in India’s electronics industry.

Three decades later, Dixon Technologies is no longer just a television assembler. It has become the country’s leading electronics manufacturing services (EMS) player, with a sprawling presence across smartphones, appliances, telecom equipment, and now even electronic components. Its success is reflected in its financial performance. In FY25, the company’s gross sales saw a YoY leap of 119.5% from Rs 17,706 crore to Rs 38,860 crore. Profit after tax saw shot up exponentially by 224% to Rs 1,215 crore.

So, when Dixon made it to the BT500 list of most profitable companies, it wasn’t a surprise. It epitomises the succcess of the Make in India story.

Dixon’s strategy has always been consistent. “Our approach is to enter a category, capture 35–40% of the market, establish a strong lead over competition, and then drive operational excellence,” says Atul Lall, Vice Chairman and MD of Dixon Technologies.

Diversification has helped Dixon not only weather sectoral cycles but also establish itself as an indispensable partner for global brands looking to manufacture in India.

Big Smartphone Bet

If one category has defined Dixon’s recent trajectory, it is smartphones. The company entered the space just seven years ago but now counts nearly every major Android brand among its clients. “From FY20 to FY23, our mobile business revenue was around Rs 12,000 crore. In FY24, it rose to Rs 18,000 crore. By FY25, it had more than doubled to Rs 38,000 crore. We are confident of reaching Rs 55,000 crore in FY26,” says Lall.

Dixon Tech produced 28 million smartphones in FY25. The number is expected to reach 42 million in FY26.

The growth has been nothing short of staggering. Smartphones may be the headline story, but Dixon has been quietly planting seeds in other areas as well. A joint venture with Bharti Airtel to manufacture telecom equipment like routers, Wi-Fi devices, set-top boxes, and fixed wireless terminals has already scaled up into a Rs 3,600-crore business.

According to Motilal Oswal Financial Services, Dixon is pursuing a two-pronged strategy: strengthening relationships with existing clients through long-term joint ventures (JVs) and pushing backward integration into components.

Several partnerships reflect this approach. A Rs 370-crore JV with HKC Overseas to make LCD and TFT-LCD modules, a tie-up with Qtech for camera modules, and another with Chongqing Yuhai Precision Manufacturing for precision components will allow Dixon to capture a larger share of the smartphone bill of materials. For clients, this means stickier partnerships, and for Dixon, higher profitability.

Building Scale

Today, Dixon operates 26 manufacturing facilities across Uttar Pradesh, Uttarakhand, Telangana, Punjab, and Tamil Nadu. Each unit is tailored to specific verticals. This geographic spread not only diversifies risk but also ensures Dixon is embedded in multiple state-level manufacturing ecosystems.

The company’s long-term bet is clear: deepen its presence in the component ecosystem and gradually move up the value chain by developing intellectual property in certain categories. “Designing our own products is the natural next step,” says Lall.

Despite its impressive growth, Dixon faces challenges. Manish Valecha, Research Analyst at Anand Rathi Institutional Equities, says while scaling up laptop and telecom networking segments can support Dixon’s growth, higher US tariff structures compared to peer countries could hinder export competitiveness.

“Pursuing JVs with existing and new clients (versus traditional contract manufacturing) may drive sustained growth in a volatile, uncertain, complex, and ambiguous environment. However, delays in scaling up mobile component manufacturing could temporarily impact margins,” says Valecha.

What sets Dixon apart is its ability to execute in a sector where many Indian companies have struggled. Electronics manufacturing is capital intensive, margin-sensitive, and globally competitive. Yet, Dixon has managed to carve out a leadership position by focusing on scale, efficiency, and partnerships. 

@palakagarwal64