Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Dixon Technologies India Ltd (NSE: DIXON) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Atul Lall — Vice Chairman and Managing Director
Analysts:
Tanay Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Dixon Technologies Q4 FY26 earnings call hosted by DAM Capital Advisors Ltd. As a reminder, all participant lines will win listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. Anaha on the conference with Amsterdam Tanesha from DAM Capital.
Thank you. And over to you Sir.
Tanay Shah — Analyst
Thank you Ikra. Good evening everyone. Welcome to the Dixon Technologies Q4 and FY26 earnings call. Today we have the management being represented by Mr. Atul Lal, Vice Chairman and Managing Director and Mr. Saurabh Gupta, Director and Group CFO. At this point I will hand over the floor to Mr. Lal for his initial remarks post which we’ll open up the floor for Q and A. Thank you. And over to you sir.
Atul Lall — Vice Chairman and Managing Director
Thank you Sanay. Good evening everyone. This is Atul Lal and joining me today is our Director and group CFO Sourabh Gupta.
Tanay Shah — Analyst
Good evening everybody.
Atul Lall — Vice Chairman and Managing Director
I would like to welcome warmly all our stakeholders to discuss our Q4 and 12 month performance for financial year 2526 and future growth outlook. And the key highlights for the quarter are as below. The revenues for the quarter ended March 31, 2026 was 10,520 crores. EBITDA excluding exceptional gain for the quarter was was 418 crores pat after minority interest and excluding exceptional gain for the quarter was 192 crores. The key highlights for the whole year are as below. Revenues for the year ended March 31, 2026 what?
48,893 crores against 38,880 crores in the same period last year. That’s a growth of 26%. EBITDA excluding exceptional gain for the year both 18 and 87 crores against 1528 crores in the same period which is a growth of 23%. PAD after minority interest excluding exceptional gain for the year was 845 crores against 706 crore in the same period last year. With its growth of 20% starting March 26. Global macroeconomic landscape has undergone a dramatic transformation including rising Middle east tensions and concerns around a potential U S Iran escalation leading to disruption across supply chains, freight, energy, forex and commodity prices.
Q4 revenues remain flat due to geopolitical concerns, softer consumer demand, inventory rationalization by brands, elevated input cost negatively impacting the smartphone and IT hardware segment Electronics industries continue to face inflationary pressure in key components such as memory chips and semiconductor linked inputs driven by air led demand and supply constraints resulting in cautious procurement behavior towards brands. Despite near term headwinds, we continue to strengthen our customer partnerships and expand capacities across segments while accelerating our backward integration and localization strategy.
Our parities remain clear to sustain growth momentum, strengthening our competitive positioning and continue to invest in talent capabilities enhancement. We will be expanding the capacities of camera module and a subsidiary QTech which is an ECMS beneficiary for smartphones from 70 million annually to around 180 to 190 million annually over the next 15 to 18 months, largely catering to our capital smartphone volumes. In addition to deepening the level of manufacturing capturing more value added in depth, we have received PN3 and ECMS approval for 7426 display module JV with HKC.
Construction of our display facility is completed and installation of machineries are ongoing for mobiles, IT hardware products and automotive displays. The response from various brands is very encouraging. The trial will start from beginning of Q3 and mass production to commence from end of Q3 beginning of Q4 this fiscal we remain focused to strengthen capital efficiency and balance sheet quality. Improved asset utilization, operating leverage and disciplined capital allocation supported healthy ROC and ROE of 44.8% and 28.1% respectively.
Overall working capital efficiency led to stronger cash flow generation and working capital cycle of negative eight days. We remain focused on sustaining profitable growth while maintaining strong return ratios and balance sheet discipline. We remain confident in the long term Indian FTMS opportunities supported by supply chain diversification, increased localization, supported government policies, pli red skill expansion and continue to create a strong multi year growth Runway for the industry.
Now I’ll share with you the business performance and insights in each of the segments mobile and other EMS businesses. Revenue for the quarter for mobile and other ems business was 9485 crores and operating profit of 337 crores. Mobile industry has seen some headwinds from memory price inflation and demand moderation in the last six months over the past few weeks. Supply demand dynamics are becoming more balanced and we are beginning to see an improvement in customer ordering pattern and we expect a higher double digit growth quarter on quarter in the smartphone volume along with growth in selling prices by 12% to 15%.
We strongly feel that the momentum will sustain for the balanced part of the fiscal year. We expect a strong growth in volume for our in US brand and we expect a significant uptick in volumes for a subsidiary Smart Tube on export for largely feature phones and also smartphones mainly for Africa market from mid Q2 and have started manufacturing smartphones for HMD in Q1. Our 400,000 square feet facility for 7426 long chair JV for manufacturing of smartphones and other electronic products is expected to start operations by Q3 which will meaningfully strengthen our execution capabilities.
We are having robust order book for smartphones and also an advanced discussion with them for adding other product categories in the JV. Construction of a 1 million sq ft facility in Noida with higher capacities for our anchor customers is nearing completion and we expect the operation to commence by Q2. This discussion Telecom and Networking Product the segment continued its strong growth trajectory on the back of expanding customer relationships and higher execution across key product categories driven by increasing network infrastructure investments including capturing emerging opportunities and growing localization of telecom equipment manufacturing.
We have commenced manufacturing of highly complex telecom and backhaul microwave radios and plan to initiate exports in this fiscal. We have commissioned a new manufacturing plant for capacity expansion and increased their housing area to support the growth trajectory. Our strategy in this vertical is to move up the value chain from pure EMS to design led solution centric partnership and have now entered into joint design and manufacturing model with a key customer enabling greater backward integration localizing a higher share of the bom.
We expect this vertically deliver high double digit revenue growth in the current fiscal IT hardware products the segment delivered a healthy performance for the quarter under review and we expect 3x growth in in the revenues in the current fiscal against last year with huge uptake in order books from all customers. Our dedicated IT hardware products manufacturing unit in Chennai has successfully established stabilized mass production of laptops and all in ones and have secured orders for desktop from one of our customers.
The execution was the same should start in Q2 of this fiscal. We’ve also started manufacturing tablets in addition to laptops for our existing customer. A new facility adjacent to a facility under 6040 GV within Mintec Caravan is progressing well and expected to go into mass production in Q3 of the current fiscal in line with the backward integration plans, we’ll commence SSD manufacturing in Q2 and display modules with SDC from end of Q3 beginning Q4 and we’re also exploring other critical components such as power supply and mechanicals which will enhance valuation and margins.
We are also in discussion with a JV partner to participate in the fast growing server opportunity and to move from end client IT hardware into data center and enterprise infrastructure hardware which is supported by strong government policy, tailwinds on server manufacturing and backward integration including a clear push on localization and attack solid a framework for same which meaningfully improves the viability and return profile of India based server and component manufacturing. All the work taken together these drivers give us strong visibility on reverse growth and the vertical and potential to make it a meaningful pillar for Dicken’s overall portfolio over the next few years.
Home Appliances the revenue for the quarter was 329crores and operating profit was 31crores. Semi automatic washing machines continue to deliver robust growth. We have started manufacturing semi automotive washing machines in 16 and 18 kg capacity which is first across the industry. Fully automatic washing machine business is scaling well on the back of healthy demand and deeper engagements with key brands. We have a healthy order book in emerging categories such as robotic vacuum cleaners where we see strong potential for multi year growth and also deeply working on introduction of other appliances like dishwashers, microwaves and kitchen chimneys which would help us to offer a complete home appliances portfolio.
This segment continues to demonstrate strong strong ODM capability across design support, testing, manufacturing, product customization, value added offering increase in automation which will enhance margins, improve customer stickiness. Addition of a new manufacturing facility in Tripathi will expand our capacities from 0.6 million units per annum by another 0.3 million units including fully automatic front loading washing machine which will be launched by end of Q2 this financial year. So this is the first Indian company launching the ODM solution.
Lighting the JV signifier continues to deliver strong revenue growth and we expect the revenues to grow almost to 2x in the current fiscal. The growth is being driven by the strong operational synergies between Signifi’s technology leadership and Dixon’s manufacturing scale leading to enhanced productivity, improved operational efficiency and enhanced cost competitiveness with huge focus on automation and backward integration. Further building on our share in B2B space on bulbs, patents and downlighters, we are significantly increasing our volumes on the other niche products like 2×2 tunnel lights, tea lights, mirror lights positioning us firmly as the foremost player in the lighting industry which is witnessing consolidation at a rapid scale.
Pursuing an active product mix improvement strategy, we are continuously adding premium indoor and professional lighting products and luminaries to our portfolio. We have received two export orders from one of the largest USG and and a European retail chain for the strip lights which will start getting executed from Q2 and are also in discussion for other product categories consumer electronics I.e. LED TV and refrigerators. Revenue for the quarter under review was 697 crores with an operating profit of 40 crores.
The quarter under review saw temporary slowdown in industry demand due to geopolitical concerns and rising input cost, but we have to actively procure advanced orders from customers with better price offerings for the upcoming quarters. Our focus remains on large screen, smart connected and premium models where we can differentiate through manufacturing quality, platform capabilities, cost efficiency and technological upgradation. We have launched production of high end media led TVs and will be shifting it to Ottombl’s model by Q2 and also introducing Soundboard cities enabling our customers to into the fast growing premium segments.
Refrigerators Q4 marked a transition to revised PE norms and upgraded energy efficiency standards for compressors. This led to industry wise price increase just ahead of the peak summer demand season beginning in January. As a result, several brands focused on liquidating existing inventory with older VE ratings and limited procurement. Under the new norms, we continue to see traction with LV orders and improved visibility both and Direct Cool and Benji bars that’s 50 and 100 liters. Our ODM capabilities are scaling well allowing us to offer more differentiated value added design and support faster model refreshes to support future growth.
We are expanding our current facility by another 375,000 square feet which will also enable manufacturing of two door refrigerators, deep freezers, busy coolers and cybers air refrigerators with meaningful opportunity to move up the value chain, expand wallet share with customers and built a broader appliance platform over the period. Regs and Dixon Electronics a 6040 JV with Regs and Japan for ACP ECBA continues to perform well delivering healthy growth along with a strong cash flow and a strong ROCE with a stable and long term relationship with our anchor customer.
We also added a new facility in Chennai strategically located closer to our anchor customer which should expand our capacity and strengthen our partnership variables and wearables. This vertical operated through our JV with Imagine Marketing continues to see broad based growth with solid balance sheet and healthy cash flow generation. The business has scaled well with our existing product portfolio and has now entered the next forward expansion by adding new product categories Dash Cams, power banks, smartwatches and other adjacent accessories which will improve capacity utilization and operating leverage across manufacturing footprint.
High end specialty EMS business is a part of our next phase of transformational growth. We have partnered with a leading global management consulting firm for designing a comprehensive multi area strategic roadmap to build scaled specialty high margin EMS business including M and A opportunities focused on aerospace, defense, automotive, medical and industrial verticals. This initiative was focused on identifying the most attractive high growth and high value product in the above segments. Defining a differentiated technology and capability roadmap and creating a robust execution framework spanning capital allocation, talent development, strategic partnerships and market expansion with the aim to accelerate Dixon’s evolution into complete competitive manufacturing platform.
With that I’ll conclude my remarks and both me and Saurabh are happy to take any questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use headsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pankash Thibrewal from Ikigai Asset Manager. Please go ahead.
Tanay Shah
Yeah. Good evening Atulji. Hope all is well at your end.
Atul Lall
All well. Pankaji, how are you?
Tanay Shah
Thank you. Thank you. Thank you sir. Just quickly two, three questions. One, first congratulation on great cash flow conversion. Preliminary look suggests that cash flow has been very strong despite of earnings with a little sluggish. So continue doing that on 27. Just wanted to get your sense on. I’m sorry
Operator
To interrupt. Pankaj, can you please use the handset more? Your voice is fluctuating.
Tanay Shah
I’m using the handset only.
Operator
Okay then please speak a little louder. Thank you.
Tanay Shah
Yeah, so on the mobile side, can you give us some color on how we are looking at the ramp up on volumes in FY27 and what are the other areas of growth this year we are targeting in terms of IT hardware. I remember last time you spoke about that 3 and a half, 4000 crores would be possible in this year. FY27 on the display JV on the camera module. Just take us through some of the growth drivers for this year and also the vivo jv. Any thoughts on that? How should we think about from that perspective and whether your volume, which you will probably kind of talk about, does it includes vivo?
Does it include vivo? Just some color on that so that we are able to help understand on the growth side?
Atul Lall
Yeah, sure Pankaji. So you see we have really focused on our balance sheet strength and in spite of a sluggish business environment we have generated after doing a capex of almost 1058 crores, a free cash of 700 plus crores, the ROC is 44.8% and working capital operating cycle is negative 8 days. So that way the balance sheet is very strong for triggering any kind of growth.
Tanay Shah
Absolutely.
Atul Lall
As far as 27 business plan growth numbers are concerned. And here I am talking on mobile without Vivo. Yeah. We have closed at almost 32 odd million in the current fiscal. We feel that the overall volumes without Vivo is going to be almost similar. Okay. Because there is an overall decline due to increase in the memory prices and the ASP going up significantly. As far as Vivo is concerned, we are deeply engaged with the government. We feel that we are very close to it.
Tanay Shah
Okay.
Atul Lall
And that’s where the status is. I reiterate that we feel that we’re very, very close to it.
Tanay Shah
And if Vivo comes, what could be the volumes?
Atul Lall
So it depends on the timeline. So on an annualized basis, 67% of what vivo said. And last year we were sold almost 35 million units. And the 2022 million units can be added on an annualized basis.
Tanay Shah
Okay. Okay.
Atul Lall
So that’s the number. Apart from that, on the feature phone side, there’s a significant upside because we’re going to be starting exports of feature phones under our subsidiary ismartu to Africa.
Tanay Shah
Yes.
Atul Lall
So that number will take us up to almost 50 million units.
Tanay Shah
Okay.
Atul Lall
Further, we are expecting PLI2 for mobiles to be rolled out.
Tanay Shah
Okay.
Atul Lall
Let’s see what will be the structure and format of it. We understand the focus is going to be more for global markets. If that happens, then I see that beyond vivo and beyond Ismartu, another 4 to 5 million units can be added. So I’m giving you the overall picture and direction.
Tanay Shah
Yes. As far as mobile
Atul Lall
Is concerned,
Tanay Shah
Absolutely.
Atul Lall
IT products, the business looks very healthy. We have created more capacities. We have deep relationships with top four brands in the country, the global brands. And we feel that our revenue in this fiscal is going to be more than 4000 crores.
Tanay Shah
Okay, that’s good to hear.
Atul Lall
In our camera model acquisition of QTech, we are expanding capacity from present 70 to 80 million to almost 190 million. Last year, on an annualized basis, we did a revenue of 1700 crores. We are targeting a revenue of almost 2,500 crores in that business. As far as the display is concerned, the building is ready, the machinery is getting installed. We plan to start the trials in Q3 of this fiscal and Q4. The commercial production is going to start. I’m not putting in the numbers to that. In the current fiscal, the other triggers of growth, the telecom network business is doing extremely well.
Tanay Shah
We have
Atul Lall
Grown from 3600 crores to 5000 crores in the current fiscal we are targeting almost 75008000 crores in 2627. That’s another major trigger of growth enlightening, which is a lagarde for us. We did almost 800, 850 crores. The next year target is almost 1700 crores. We expect 2x after we have formed the JV with signify. And then there are further additions. Our Inventech with JV Inventech JV is going to start generating numbers from Q3 of the current fiscal in that we’re going to be setting up the SSD module line which is going to further generate the numbers.
So these are all triggers of growth which have been planned and they are in the U. S in both. Pankaji.
Tanay Shah
Very nice. Just last question. On the mobile side, is it fair to say that because of the memory chip pricing going up and also your product realization going up
Operator
The top line growth could be much higher than the volume growth which you will see.
Atul Lall
That’s right.
Tanay Shah
So we expect the revenue growth should be at least 12 to 15% higher if not more.
Operator
That was not the case for the last few years where volume
Atul Lall
Was equal to your top line growth. Is that a fair indication?
Tanay Shah
And once the, once the vivo thing comes into the system then we are hoping that the selling prices would be better than our existing weighted average selling price of the current portfolio.
Atul Lall
Okay. So that will be an aided one from an overall realization perspective.
Tanay Shah
So the margins may optically can look lower but the revenue wise there will be upside on that.
Atul Lall
Thank you. Thank you and wish you all the best. Thank you. Thank you.
Operator
Thank you. Next question is from the line of Aditya Bhatia from Inverstech. Please go ahead. Your line is unmuted. Please go ahead with the question. Aditya, can you hear us?
Tanay Shah
Hello. Am I audible? Yes
Operator
You are. Yes you are audible. Please proceed.
Tanay Shah
Hi, good evening sir. Hi sir. So my first question is on. On the PLI scheme coming to an end on the mobile phone side. How the conversations with customers? Is it only the ailment that we were retaining which we start losing out in terms of profitability or can there be any other hit in terms of PLI scheme going away as well?
Atul Lall
So we have five large relationships. Motorola, our relationship through longchair with Oppo and our other relationships. Please be rest assured that the relationships are extremely strategic, deep and anchor and we expect volume growth and a larger share of business across all these relationships. So please be rest assured on that. Obviously there is margin pressure because the PLI going away a Part of it is getting compensated through the enhanced operational efficiency and the balance part of it is going to start kicking in with our backward integration piece of camera modules and display.
So that’s the path we are pursuing, which we have shared with you earlier also. But please be rest assured the Anchorage relationships are very deep and there is no hit on that.
Tanay Shah
Sure, sure. So what we had earlier kind of discussed that 50 to 30 basis points of margin impact, maybe there add to that, maybe optically how the margins may look lower on account of high realizations, but that that should be the complete impact, nothing more than that.
Atul Lall
That’s right, yes. Scattered. Absolute, absolute gap.
Tanay Shah
Perfect. Perfect, sir. And so in the last conference call you had spoken about industrial EMs, wherein you had referred to hiring a senior resource. This time around you have kind of hinted about exploring different opportunities within specialty ems. If you could give us some more details about what are the kind of opportunities within say aerospace, defense, automotive that you spoke about, how large those opportunities could be. Is it likely to be organic, inorganic? So what’s really the roadmap over there?
If there’s anything that you can disclose.
Atul Lall
So I think we have already taken a very senior resource at the level of president, CEO who is going to build this business for us. We have partner a very large consulting company. Five micro verticals have been identified. Their strategies are being prepared already on the table. There are a couple of serious inorganic opportunities across the verticals that I mentioned in my opening remarks. So we have not budgeted any numbers out of these opportunities as of now in 2016, but we feel that something substantive, at least a couple of them, is going to happen in the current fiscal.
Tanay Shah
Okay. And any indication on size, how large could these be?
Atul Lall
So these are going to be higher margin businesses. We see that each would be, I mean the combined opportunities which come in want to be at least scalable to the size of 3 to 4000 crores with a significantly higher operating margins. Significantly higher operating margins.
Tanay Shah
Understood, understood. So my last question on exports of mobile phones. So of course with ismartu we are starting with the feature phones, but is there a roadmap of moving that relationship to smartphone exports as well? And besides Motorola and ismartu, which are the potential other customers that may get added, let’s say if PLI2 scheme comes in and incentivizes export opportunities. Thank you.
Atul Lall
So I would say we are. Well, we have a deep discussion with our partner. And starting with feature phones with iSmartu, the smartphone exports is also going to be initiated. Of course, the Motorola relationship for Exports is going to get a flip after the PLI2 at present. These are the two relationships which are going to mature into exports. But beyond that, as I had shared in my opening remarks, we’ve already got two orders. One from large retail chain nus, another one from another larger tail chain in Europe for lighting that is already triggered.
And also in our telecom business wherein we started manufacturing radios, microwave radios, we have got an export break. So step by step we are building.
Tanay Shah
Sure. And this is part of your indication of doubling up of lighting revenues or this could be over and above that.
Atul Lall
So at present in our. To be very candid in our aop, we have not considered these numbers. This is going to be over and above that.
Tanay Shah
Sure. Perfect. That’s very helpful sir. Thank you so much.
Atul Lall
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow up question, please reach on the queue. The next question is from the line of Siddharth Vera from Nomura. Please go ahead.
Tanay Shah
Yeah, thanks for the opportunity. Sir. Sir, first one clarification. When you said that the revenue for the current quarter you expect a 12 to 15% growth, is it volume or are we talking about the value here? And second is. Sorry,
Atul Lall
Yeah, it’s the volume growth. You’re talking volume growth. Okay. Both the pricing growth will also happen in the volume growth will also happen.
Tanay Shah
Understood. And the second thing was on the exports, how much was the exports in FY26? And I mean when you say flat volume growth that does not include exports. Right. So the export of 4 to 5 million will be overrun on top of the number which we are planning for the next year.
Atul Lall
So that is subject to the policy framework of mobile PLA2 in the. In the present, in the last fiscal the Exports was approximately 5375 crores.
Tanay Shah
Okay. And any color on which markets are we looking for these exports which we plan to do. And in the IT segment also I think we have seen some increases in the impact from the memory prices. And also do you see a potential risk of ramp up slower being there as well as we go into the next few years.
Atul Lall
So the export market for mobile are largely going to be for our anchor customer to US and for other partner companies going to be to the African countries. As far as the impact of the price increase or cost increase due to commodity prices in IT hardware is concerned, we have large deep relationship. In any case, our base was very small. So we are confident of touching this revenue figure of growth in the current fiscal and this business particularly our other partnership with Inventech is in a significant ramp up phase.
Tanay Shah
Got it sir. The last question is on the.
Operator
You may please rejoin the key for more questions. Thank you. We will take our next question from the line of Indrajit Azarwal from clsa. Please go ahead.
Tanay Shah
Hi. Thank you for the opportunity. I have two questions. Post HKC. Sorry, post vivo you would have something around 55, 57 odd million smartphones. Let’s say we hit this run rate by FY28 at some point in FY28 and that would imply more than 50% market share of the outsourced market in India. How do we see the smartphone volumes growth post that
Atul Lall
We see undoubtedly that there is a significant potential for exports. One is that. The second is we need to work upon getting a larger share of market of existing brand itself. A couple of relationships we see there is still a potential for increasing the share of the wallet and next is bringing in one more acquisition of a large customer. So definitely the kind of ramp over growth that Dixon has had in its mobile business is not going to be the same level but the growth will be there. That’s what we are pursuing.
Tanay Shah
Sure. So you can gain market share further in the domestic market as well.
Atul Lall
We will definitely strive for it.
Tanay Shah
Sure. And second, the smartphone concerns that you talked about, the near term issues, is it more demand issue because of rise in ASP or availability of memory chips.
Atul Lall
And so due to the kind of relationships that we have as far as the mobile phones, customers and principals are concerned, we are able to ensure the supply chain smoothness. So I’m not seeing any shortage due to which the business is getting impacted. But definitely there is a cost increase but there is no impact on production.
Operator
Sure. So the cost increase is impacting demand not.
Atul Lall
That’s right.
Tanay Shah
It is a large brand. We have global relationships with the memory suppliers and they have very deep relationships long term contracts. So I think so supply say that supply mobility is not an issue.
Atul Lall
Thanks. The reason I ask is we have seen Apple and Samsung gain market share in the Indian market while most of the Chinese brands losing that answer. Thank you so
Operator
Much. Thank you. Next question is from the line of Kur Pandan from ICICI Prudential Life Insurance Co. Ltd. Please go ahead.
Atul Lall
Thank you for the opportunity. Sir. On the mobile volume sites you mentioned demand pricing impacting the demand. So when we speak to industry their point of view is that basically there is a shortage below $200 kind of phones and their brands are also prioritizing premium phones because of the shortage. Now in that backdrop, what is giving us confidence of flat volumes? Are we getting higher wallet share and thereby we are securing our volumes or as you mentioned, there is no impact on demand so you need the same wallet share.
You are confident of that volumes
Tanay Shah
Since this part of commentary versus the industry player was slightly different. So just wanted to get more clarity on.
Atul Lall
So in our case what we are pursuing is a larger share of the customer’s wallet at how many new product new project wins we are having and with those project wins with us, we are fairly confident that they’ll sustain the volumes. Am I able to answer your question?
Tanay Shah
Yes. Yes. And just one more
Atul Lall
Clarification. So as you have highlighted earlier, the profitability is on the per unit basis. So optically on the percentage margin may look lower, but that is that is it. Otherwise per unit absolute profitability remains intact.
Tanay Shah
That’s right.
Atul Lall
X of plm.
Tanay Shah
That’s right.
Atul Lall
Okay, so thanks a lot and all the very best.
Tanay Shah
Thank you.
Operator
Thank you. Next question is from the line of Bharat Shah from BCS Capital Ideas Ltd. Please go ahead.
Tanay Shah
Yeah, namaste. I’m just kind of reflecting on the past and kind of drawing the line ahead. For the longest period we have done wonderfully well in terms of across many areas but mobile phone has been one and we have not only grown this but throughout we maintain hygiene of the balance sheet and capital efficiency.
Operator
I’m Sorry to interrupt. Mr. Shah, your voice is fluctuating.
Tanay Shah
Is this better now?
Operator
Yeah. Thank you. Please proceed.
Tanay Shah
Yeah, so I was saying that over period of time we have taken hold of mobile opportunity in a big way and have grown but somewhere along the line, do you think that strategically we have allowed ourselves to depend way too much on mobile phone where it has become very large part of the business and therefore anything unfortunate happening is affecting our overall picture. Like it has happened in the last year where memory, other things, JV approvals are not coming, all are combined together and it has hurt us.
Did we strategically kind of take an eyes off the ball?
Atul Lall
How do we strategize a business? We look at the opportunity pool, we look at the scalability of that opportunity, we look at de risking after the scalability that can we have multiple customers. Is there a possibility of entering the global markets and also is there a possibility of deepening the manufacturing now in EMS services sector the biggest opportunity pool was and is mobile and it was aligning with the government policy framework which I think as a Company we have leveraged well, Definitely there have been some aberrations, there have been some delays, particularly in vivo government approval and also similar business model.
We have tried and we have tried successfully deploying it across the other product categories. We have done it well in telecom products. Please appreciate. In 2324 we were at 700 crore, we have grown to 3600 and last year 5000 and this year to 8000. It’s absolutely a similar model. We are trying to do the same thing with the IT product where we feel that a similar trajectory of growth will happen now with the new, with the balance sheet strength and also the new foray into components is being replicating through the similar strategy.
Now I humbly admit, where possibly we have missed out is on the high margin category of industrial ems.
Tanay Shah
Correct.
Atul Lall
So yeah, that I accept. So yes, possibly I should have tried it two years back. So that’s where we are
Tanay Shah
Sure. And therefore if we sum it up, all that it is there in various other initiatives which we have taken and probably more will take from the current year with 47, 48,000 turnover that we have achieved, what kind of. Because there were too many moving parts. So what kind of turnover one should believe would be there for the current year and with what kind of margin? Similar, better or lower?
Atul Lall
So usually I don’t give guidance, but then yeah, let me just share with you. Without the Vivo numbers this year we closed almost 48,000 crores, 48,800 odd crores. Next year we are targeting almost 56,000 crores. Without the Vivo numbers and mobile volume being flat. If Vivo comes in, then it’s a very major trigger. We feel that without the Vivo also, the company will keep growing at almost 15 to 17% end
Tanay Shah
And with a better same or lower margin in the current year compared to last year.
Atul Lall
So the margin profile will be slightly under pressure this year because the PLI has gone off and there is a lag in the margin accretion happening due to component foray. But finally, when the component play is completely deployed, there will be a margin expansion from last year’s number by almost 40 50bps.
Tanay Shah
So overall profitability will rise rather than margin. Overall profit for the company in the current year will rise compared to last year.
Atul Lall
Yeah, Absolute profitability will rise.
Tanay Shah
Absolute profitability will rise. And once the component play comes in, sir, there will be a significant margin expansion which will largely get played out in 27, 28 camera modules will start will start to be will happen in H2 where we are deepening the level of manufacturing. But your display part which is larger part of the buffer indication strategy will start playing out in 27:28. Sure. Not a question, but just a point. I’m putting just a point, not a question. Don’t worry. You see, I mean our capability, core capability is the hardcore manufacturing at efficient cost.
And we have done a wonderful, wonderful job in that cash flow balance sheet, Roc, Roe, everything. I think manufacturing industry, automobile, defense related. There are multiple opportunities I think which once we widen the horizon, I think opportunity to widen materially. That is all that I wanted to put in. Thank you.
Atul Lall
We are absolutely aligned with you. And just to respond to you, there are significant adjacencies in our existing forays also. For example the display one is getting such positive traction from the automotive industry. So there are many, many adjacencies. And also what I had mentioned responding to the question by this there that into industrial ems. Please be rest assured will be a reality.
Tanay Shah
Sure. Thank you. All the very best. Thank you. Thank you sir. Thank you.
Operator
Thank you. Next question is from the line of Achar Lahare from Nuama Institutional Equity. Please go ahead.
Tanay Shah
Yeah, good evening sir. Thank you for the opportunity. First question, just a clarification. The 32 million included the export exports of five and a half million,
Operator
Right?
Atul Lall
No, no, no, no, just not including exports.
Operator
Would you be able to quantify for FY26 what is the export number, sir?
Tanay Shah
No. 33 million. Yeah, is what we did. Your question is on 2627 for FY26.
Operator
For FY26.
Tanay Shah
33 million smartphones and that includes the smartphone. And when you’re guiding for flat volume, that also in a similar context proper basis or that was just for the domestic
Atul Lall
Volumes can be over and above this 35. So that is largely domestic.
Tanay Shah
Yeah. And what was the quantum for export in FY26, sir? If you could call out that
Atul Lall
Around around 4 million 4 and a half million.
Tanay Shah
Understood. The second question I had was with respect to pli, if we could clarify what is the PLI income we booked on a gross and net basis for FY26 and how much did we receive and how much is outstanding as of 31st March 2020? Yeah. So the first part of the question is the total PLI income which has been booked across the five the four PLI schemes that we are a beneficiary of, the total income is around 360 odd crores.
Atul Lall
Okay.
Tanay Shah
And overall across this four PLIs, overall receivable balance will
Atul Lall
Be closer to 1380 of those.
Tanay Shah
And this 360 is next. Just a clarification, ma’. Am. Just a clarification. I’m not asking any new question. Just a clarification. Is this net PLI number
Atul Lall
360 cross
Tanay Shah
As in there is
Atul Lall
Gross, there is pass through. Right. And so this is a net PLI recognized in the.
Tanay Shah
And 960 would be the net. 960 is the pass on. So difference is the number.
Atul Lall
Understood, Got it. Thank you. And fall back in the queue. Thank you so much.
Operator
Thank you. Next question is from the line of Ashutosh Kumar J. From Balanc Asset Management. Please go ahead.
Tanay Shah
Hi. Hi. Thank you for taking my question. Just two questions. One is a bookkeeping question on the mobile and EMS division. Can you just break out the heritage verticals telecom and QTech part of it?
Atul Lall
We don’t split these numbers. Please, if you don’t mind.
Tanay Shah
Understood. No one. The second was around your earlier comment on the ASP increases that are happening in the industry as far as Dixon is concerned. Can you just clarify the accounting on what happens when ASC goes up due to memory issues. Then how does it impact our revenue and how does it exactly impact our ebitda? Does EBITDA per unit remain same or EBITDA profitability remains? Yes, basically it’s the bill of. So basically the revenue is a function of the bill of material, the cost of goods sold plus our conversion charge.
So if the bill of material, the cost of goods sold up goes up because of increase in the memory prices, so accordingly the revenue will go up. What our understanding with the customer is that we get an EBITDA per unit depending on the complexity which goes into the smartphone, the previous models of smartphones. So yes, if the revenue goes up, the margin can optically look lower. So we get a per unit conversion charge.
Atul Lall
Understood, sir. Thank you. These are my questions.
Operator
Thank you. Next question is from Varena Santosh Shishadri from Avendus Park. Please go ahead.
Tanay Shah
Hi sir. Good evening. Thanks for taking up my questions. My first question is on the volume cabins for the full year. Correct me if I’m wrong, sir. Based on the, you know, FY26 volumes of 32 to 33 million units, our run rate for 4Q26 implies 5 million units approximately. And if we factor in the guided volume growth of of that 12 to 15 percentage sequentially and extrapolate that to second quarter of FY27 as well, we are arriving at roughly 12 to 30 million units for first half and 20 million units for second half.
So could you explain is this largely driven by any steep recovery in the second half. Is it driven by any customer ramps or
Atul Lall
Any market share gains or is it just a broader demand recovery?
Tanay Shah
First of all your quarter four numbers are closer to 5.6 million. So it’s not 5 million. And then we are seeing on this we expect a higher double digit teen growth in terms of volumes and we have that number in mind but we don’t want to share the specific number. So high double digit teen growth I’m talking about and then on top of it we are talking about 12 to 15% pricing growth. So there is a significant growth in, in terms of mobile revenues overall on account of both pricing and volumes. Then of course you can’t just multiply the quarter one numbers in the port because there’s always a quarter two is generally the best quarter for us.
And also the exports which we mentioned also will start happening from Q2 which we mentioned in our opening remarks. So we feel confident that excluding Vivo where we will be looking at a similar volumes exports can potentially add some more, some more volumes to it. And then the Vivo volumes as, and then the approval comes in, it will have a proportionate impact for the balance part
Atul Lall
Of the year.
Tanay Shah
Thank you. And my second question is on the display business. You know, could you provide some more color on the, you know, ramp up schedule and how should we think about the margins and the utilization for FY26 and FY20, sorry FY27 and FY28.
Atul Lall
So in the phase one we are setting up a capacity of 24 million mobile displays annually and 2.4 million of automotive and IT product displays. The first line we installed is for IT products and automotive display for which the trial is going to start in Q3 of starting fiscal and the commercial production is going to start in Q4 of the current fiscal mobile display, the trial and the commercial production is going to start in Q4 of the current fiscal. As I had shared, finally the capacity buildup for Mumbai over next two years is going to be from 24 million to almost 54 to 5 million.
In the final picture of this business, the revenue target once we start achieving 80 to 90% capacity utilization, the revenue generation is going to be almost 5,500 to 6,000 crores with double digit margin.
Tanay Shah
Thank you very much sir.
Operator
Thank you. Next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Atul Lall
Sorry, the question is not clear. You’re not very. I’m not able to understand. We’re not able to understand Please you repeat.
Tanay Shah
Hello. Please can you repeat the question? Kish. Hello. Am I audible? You’re audible but we could not understand your question. Can you repeat it? Yeah. So my question is once the display business will ramp up, is it fair to assume the margin will be mid to high case?
Atul Lall
So we feel that it should be. It should be double digit margin. Yeah, it should be mid teens. So that your understanding is right.
Tanay Shah
Understood. Got it. So but let’s say what about if we explain FY28 will be a full year of revision. So initially it would be start with lower and possibly next year. That is how we should look at the business, right?
Atul Lall
That’s right.
Tanay Shah
Yes. Got it. Thank you. That’s it.
Operator
Thank you. Next question is from the line of Rahul Agarwal from Ikigai sf. Please go ahead.
Tanay Shah
Hi sir, very good evening. T And Sana, just two questions. Two questions are on CapEx. Clearly we are going ahead with most of the capacity expansions. Even fiscal 26 you’ve ended at 1000 crores sir. Next year fiscal 27. How do we look at the capex project and which segments take the largest share? That is question 1 and question 2. Just from a top down perspective for Bixon, both from an input cost inflation perspective and the forex rate which is IMR US dollars, how does it impact Dixon? Positive or negative?
Is there a time lag between what we should actually anticipate once you know it’s a 100% pass through business is what I understand. Could you just put some thoughts around these three points which really help to understand further.
Atul Lall
Thank
Tanay Shah
You so much.
Atul Lall
So Rahul, on the capex side we feel that the CAPEX number, well a lot of capex in our existing business has already been front ended. The CAPEX allocation is largely going to be on three things. One are display capacity, second our expansion of the IT business and third is expansion of a camera module capacity and deepening of manufacturing. As far as absolute number is concerned, it will be in the similar range and the balance sheet and the cash accruals are adequate to support this expansion. As far as the commodity price increase and the currency fluctuation is concerned, in our EMS business is an absolute pass through.
So there is no currency risk and there is no time lag. As far as our ODM business is concerned, which is the business of our appliances, I.e. Washing machine, refrigerator, LED television and lighting, that’s wherein we do a product sale and we have to pass on that cost increase to the customer. Yeah, we are pushing that cost increase to the Customer sometimes there can be a lag of a couple of months but largely we are able to pass it on to the customer. So that’s where it is.
Tanay Shah
Thank you so much and wish you all the best for fiscal 27.
Atul Lall
Thank you.
Operator
Thank you. Next question is from the line of Samil Mehta from Kotak. Please go ahead.
Tanay Shah
Yeah, thanks for the opportunity. So one question from my side. In terms of the industrial EMS opportunity, is it fair to assume that in terms of the opportunity size it is maybe as big or bigger than the IT hardware and also from a margin perspective it will be better margins with less dependency
Operator
On government PLIs, etc. Would that be a fair assumption?
Atul Lall
Yeah, you’re absolutely right.
Tanay Shah
In terms of revenues, IT hardware can be a bigger opportunity. But margin profiles definitely in an ems high margin, EMS business, specialty, Ms. Business will be much much higher. Definitely. As well as the PLI
Atul Lall
There in that particular segment.
Tanay Shah
Sure. And my second, just a bookkeeping question. Of the 360 crore of net PLI what you have booked across five entities, would it be possible to give just for the mobile and EMS division?
Atul Lall
Yeah, so that would be. So that is closer to almost 250 or closer.
Tanay Shah
250. And last question now with various things on the plate, is it fair to assume that our earlier thoughts of putting up a display fab unit is much in the less priority versus some of the other businesses what we are talking about?
Atul Lall
Yeah, that’s right.
Tanay Shah
Sure sir, thank you so much and all the best for subsequent quarters.
Atul Lall
Thank you so much.
Operator
Thank you. Next question is from the line of Pulkit Patni from Goldman Sachs. Please go ahead
Tanay Shah
Sir, thank you for taking my questions. I have a couple of them. One is you spoke about server opportunity at looking at data center servers. Could you highlight like what stakeholders of discussion are we in? What is the kind of work that we could get over the next say 12, 18 months here or is it very very initial stage?
Atul Lall
Well, we are mapping this opportunity and dialogue with our partner has already started. We feel that the government policy framework for local manufacturing of servers for serving the Indian data center requirement as soon as a significant flip. So the contours are being worked out exact numbers and opportunity. In terms of numbers, I’m not in a position to share. I think it’s early for that.
Tanay Shah
Sure sir, this is clear. So my second question is I’m referring to notes to accounts 11 which talks about 1100 odd crore which is receivable from PLI and 730 odd crore that is payable. Could you highlight the reason why this is like mentioned in the note. Is it something where government’s not given approval? Like if you could just highlight, you know what’s the status there in
Atul Lall
Terms of both are receivable and our payout to the customer.
Tanay Shah
Yeah. So basically as part of the PLI scheme there was a provision under the guideline that there was a budget allocated to it for domestic companies, five domestic companies and five foreign companies. Now and there is a provision of the guideline that if some company underperforms those five domestic companies underperform there to the extent that there is an over performance by an account company and in this case of course is Dixon, the incentive will be given to the extent of underperformance by other companies.
So they have been given all the incentives by the government till the ceiling revenues which is ceiling which is defined per applicant or per company. Now the overflow money is still pending which we are in discussions with the government and so there will be a similar cases would be there for foreign companies as well the vendors of large global brands. So that that thing is being pursued by the government. So the auditors field felt right that there should be a note to it and that’s the reason it has been mentioned.
Atul Lall
Okay, very clear. Thank you Saurabh.
Tanay Shah
Thank you.
Operator
Thank you ladies and gentlemen. We will take that as a last question for today. I would now like to hand the conference back to the management for closing comments.
Atul Lall
So thank you so much everyone for being with us today evening and thanks a lot. Have a great day.
Tanay Shah
Thank you so much. Thank you.
Operator
Thank you on behalf of Dam Capital Advisors Ltd. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.