Dixon Technologies India Ltd (NSE: DIXON) Q1 2026 Earnings Call dated Jul. 22, 2025
Corporate Participants:
Unidentified Speaker
Atul Lall — Managing Director and Vice Chairman
Bhoomika Nair — Investor Relations, DAM Capital Advisors Limited
Saurabh Gupta — Chief Financial Officer
Analysts:
Unidentified Participant
Siddharth — Analyst
Darshil Pandya — Analyst
Aditya Bhartia — Analyst
Madhav — Analyst
Piyush Khandelwal — Analyst
Vikram Srivastava — Analyst
Naushad Chaudhary — Analyst
Abhishek Ghosh — Analyst
Neeraj Jain — Analyst
Teena Virmani — Analyst
Amber Singhania — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q1FY26 Dixon Technologies Earnings Conference Call hosted by Dime Capital Advisors Ltd. As a reminder, all participant lines will be in the 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 attached end phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Vomi Kanaya from then Capital Advisors Ltd. Thank you and over to you ma’. Am. Good evening everyone and a warm welcome to the Q1 FY26 earnings call of Dukes and Technologies. We have the management today being represented by Mr. Atul Lal, Vice Chairman and Managing Director and Mr. Sourav Gupta, Chief Financial Officer. At this point I’ll 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 — Managing Director and Vice Chairman
Thanks Vimeka. Good evening ladies and gentlemen, this is Atul Lal and we also have on the call today our CFO Sourabh Guptla.
Saurabh Gupta — Chief Financial Officer
Good evening everybody.
Atul Lall — Managing Director and Vice Chairman
Thank you very much for joining the earnings call for the quarter ended June 2025 we have beginning our exponential year 26 with reversed all round operational and financial performance. Our diversified portfolio, strong customer relationship, healthy order book operational excellence and focus towards backward integration and creation of components is key ecosystem gives us confidence that we’ll continue our stellar track record of consistent performance and scale to new heights over the coming years. To share with you the key highlights for the quarter, Consolidated revenues for the quarter ended June 2025 was 12,838 crores against 6,588 crores in the same period last year.
Growth of 95%. Consolidated EBITDA for the quarter was 484 crores against 256 crore in the same period last year. Growth of 89%. Consolidated PAD for the quarter was 280 crores against 140 crores in the same period last year. With its growth of 100%. Guided by our underlying commitment to financial prudence, we continue to demonstrate high level of discipline in managing our working capital cycle. It stood at negative four days along with a strong balance sheet with a net debt of negative 214 crores. We continue to deliver consistent improvement in our return ratios with return on Capital employed of 49.1% and return on equity of 33.9% as on 6-30-25.
This reflects our strength of our business model and these ratios will continue to serve as fundamental benchmarks in assessing strategic investment opportunities and guiding capital allocation decisions and ensuring alignment with the long term goal of generating sustainable value for our stakeholders. We continue to make strategic investments to expand our manufacturing capacities, enhance our manufacturing capabilities and focus on deepening the concrete ecosystem which will help us build a resilient and future ready business. We will be filing our component payout applications for display module, camera modules and precision components in next week or so. Now I’ll share with you the business performance and insights of each of the segments.
Mobile phone revenue per record for mobile business was 11,663 crores, a growth of 125% year on year an operating profit of 395 crores. The growth of 131% out of this revenue for telecom, IT, hardware wearables and wearables was 1410 crores, 247 crores and 175 crores respectively. We witnessed strong momentum in the quarter with healthy volume growth across various smartphone brands. Order books for Q2 financial year 2526 looks even stronger ahead of the festive season and we expect volume growth of at least 15% quarter on quarter. Dixon remains the largest domestic manufacturer mobile phones with high volume capabilities based in class infrastructure.
Construction of our 0.8 million square feet mobile manufacturing campus is progressing well in Noida and our anchor for our anchor customers with much higher capacity and is expected to be completed by March 26. Approvals are expected for our 7426 joint venture. The longchair Shorty and PNP approval process for our 51Nine joint venture with Devo is advancing well and also the application for our joint venture with HTC is advancing well. We have signed a binding term sheet for 51% stake in QTech India for manufacturing supply of camera and fingerprint modules for smartphones and will be filing applications under the ACSN fee shortly.
Temperature agreements pertaining to the transaction are expected to be closed another couple of months and we expect the financials to start consolidating from Q3 of the current financial year. Construction of a facility for display modules in which we have a 7426GB with HTC, a first phase underway for smartphones and notebooks with trials commenced from Q4 this fiscal and commencement of mass production by Q1 of next fiscal. We’ll be filing the application for this under the ECMS scheme also in the next 7 to 10 days. Consumer electronics with LED TV and refrigerators revenue for the quarter was 672 crores with operating profit and margin of 40% and 6% respectively.
Out of this the revenue for ET as a business LED TV Q2 of this screen looks very promising and we have a healthy order book ahead of the testing season. We have a strong interest from some new brands of our ODM Solutions and almost 72% of our sales will be from ODM Solutions and LED TVs. We’re actively working on increasing the capacities and enhancing capabilities for manufacturing for industrial, institutional and automotive displays refrigerators. Within one year of operation we have been able to capture around 10% of the Indian market in direct crude category and seeing the increasing response in demands, we are now expanding expatriate 2 million from current 1.2 million in existing facility in Cape Vernoya.
We are also now pouring into the new products in coolant diversion like crossfree, side by side minibars, heat freezers and veggie coolers. The output look for 2526 is very promising with healthy order book and we are confident of achieving 50% growth this fiscal. With the capacity expansion and new product category, the business is expected to probably grow meaningfully in the next couple of years. Home appliances revenue for the quarter is 313crores, operating profit of 36crores with a growth of 13% year on year with an operating margin of 11.5%. Our construction for capacity expansion for equity and Sirupati will be ready by August 25th to meet the increased order book of our customers.
Launch of semiautomatic washing machine high capacity category of 16 and 18 kg has already been done and product will be launched by Q3 of the current fiscal. We have also now partnered with Eureka Force for manufacturing of Robo vacuum cleaners which diversifies the proximity. We have already started working on project for front load washing machine and have appointed a very senior Korean expat to drive this project. Lighting revenue for the quarter 88 crores. Our 5050 JV will signify that its Phillips brand will commence the operations in first week of August 25th and expected to realize operating efficiencies to synergies.
The addition of new product lines including premium indoor and professional lighting and potential export opportunities. We’re going to first pilot order from one of the top retail teams in US which are expected to be used in the current quarter and aim to scale up this opportunity to a sizable business in the upcoming quarter. We are continuing and focusing and investing in automation to further enhance operational excellence. Telecom and networking products this segment witnessed a strong growth with remaining of 1410 crores which is more than 250% growth. Home broadband Penetration India continues to grow at a very fast pace and we’ve been continuously building up more capacities and enhancing our manufacturing capabilities for 5G FWA that’s fixed wireless excess devices for our anchor customers.
We also have a very strong order book from our anchor customers and IPTV set of boxes in line with the backward integration strategy we have already localized components including moldings and adapters and knockout focus on other critical parts with the objective of strengthening supply chain resilience, improving cost structure, support margin expansion. We are in advanced stage of discussion for a JV for a critical component for telecom devices. VC Telecom segment as a multi tiered growth opportunity and we are actively working on non CPU products now laptops, tablets and IT hardware products. Our dedicated IT hardware product manufacturing unit in Chennai has started mass production of laptops and AIOS for HP and ASUFs.
All the good for Lenovo is picking up every month and expect a strong revenue growth in coming quarters. We’re excited about the long term opportunity for the segment. Our 6040GV is in Ventex, one of the world’s top five PC ODMs for manufacturing of Nodebook, PC products, servers and desktop PCs expected to be operational by Q1 of next fiscal. We have signed a binding term sheet of 7426 JD with Chongqing UI for precision components for mechanicals and metal parts for existing customers for notebooks and further be extended to smartphone and various other product categories. We’ll file for this category also our application under the ECMS scheme shortly.
We’re also pursuing potential partnership with components like ssd, navigation and power supply to leverage the IT hardware PLI to scheme wearables and airables remaining for this segment was 175 crores for the quarter. With healthy operating margin and very good roc we have strong order book in this business. We’ve also now added dashcam and smartwatches to our product portfolio with the existing customer and we are also discussing new brands. Increased focus on backward integration and localization at exum Dixon Electronics JDXM achievement highest quarter year revenue of 144 crores with very heavy operating margin in high ROC.
They finalized a new manufacturing location at Chennai for meeting the increased order book for our anchor customer which is expected to be on operation by Q4 of this business. So I would like to stop here and me and Saurabh are there to address any questions. Thank you so much.
Questions and Answers:
operator
Thank you very Much. We will now begin the question and answer session. Anyone who wishes to ask question may press star N1 on the touchdown telephone. If you wish to remove yourself from question Q you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Siddharth from Nuarma Capital. Please go ahead.
Siddharth
So first question is on this camera module jv so can you share some more thoughts about how should we think about the ramp up here in terms of the volume market share which they have, who are the key customers and if as and when they come with us in jv, how should the ramp up look over the next couple of years?
Atul Lall
So QTech is one of the five largest camera module manufacturers globally. They have a running factory in India and already in India they are supplying to all the major Android brands I.e. vivo, Oppo, Xiaomi, Macro, they have a large market share there. Just to give you a thumb rule kind of a thing. In every camera there is almost, in every mobile There is almost 3.2 camera modules going in. So the Indian market is around 450, 475 million camera modules. Last year they did around 40 odd million camera modules. Dixon in house consumption itself of camera modules is going to be almost in next two years reaching 180, 90 million.
So we want to ramp it up to that level plus whatever we can sell to the in house consumption in house manufacturing of the various brands. So that’s the addressable market we are looking at. We feel that over the next. Four. Years last year they’ve done a revenue of almost 1977 crore. We feel that over next four, five years the business is going to be somewhere around 5000 crores loss.
Siddharth
Got it sir. And how do you see the investments here on both initial investment of the 51% stake and subsequent investments going ahead and similar for the CH B Any numbers there in terms of investments and revenue ramp up you are looking at.
Atul Lall
So there is some investment going into the purchase of shares from present owners and this is almost around 400 odd crores balance. 150 odd crores is going to go for the capex use into the company and this is required for the capacity expansion of deepening of manufacturing of what we plan to do. So this is, this is the nature of transaction.
Siddharth
Profits.
Atul Lall
Are still being worked.
Saurabh Gupta
Out, the numbers are yet to be worked out, will be worked out in the next couple of months but we.
Atul Lall
Feel the investment there, the Total project cost is going to be 100 crore.
Siddharth
Okay. Okay. So given these investments now for the year, how do you see the total categories in investments spend for the company? If you can describe that.
Atul Lall
In first quarter we made a capex of around 287, 87 odd crores and another 800 to 900 crore is going to go into this.
Saurabh Gupta
Yeah. So combination of expansion capacities and also this QTech acquisition. I think so yeah. By end of this year we should be closing at a number of closer to anywhere between 1150-1200 total. So lastly on the consumer electronics we have seen a very sharp fall in the volumes or the revenues consistently. So what is the outlook there? When does things start turning around or do you think it may take some time before we do see any meaningful improvements here?
Atul Lall
So undoubtedly in the first quarter we’ve had a significant miss on the television business. Although the refrigerator business has done exceedingly well in Q2. The order book looks good. We should be back to almost 800k in the Q2 of this business and 70 72% of this business is through the ODM solutions.
Siddharth
Thanks a lot. Welcome back.
operator
Thank you. The next question is from the line of Darshil Pandya from Finch Capital. Please go ahead.
Darshil Pandya
Hello, I’m audible sir. Yes, good evening sir. My question was in similar lines with participants. I just wanted to understand the security surveillance system business and how are we planning to you know cope up with the government’s new targets of you know this installing in the trains and now the CBSE boards and all of what I’ve heard is that 80, 85% of the business is all imported and assembled. So wanted your clarity as to what we are doing in this business.
Atul Lall
So we only have a minority stake of 6.5% in all 10 POTE. Please appreciate our CCTV business has been merged into other than hotel and which we have 6.5% discount. So that’s our limited interest in that business. And yeah it’s going through a different route of public markets which I think will be a significant value creator for Nixon. So we are not reflecting anymore. Yeah.
Darshil Pandya
Okay. And as for your 2024 annual report, it shows that you know we, we have plans to scale this capacity from $12.25 million 21 odd millions. So where are we standing today we might need to understand.
Atul Lall
Business. Yeah. As already explained so last year we did a transaction where we sold our 50% stake to our JV partner Aditya Infotech and we have done as part of the transaction we have taken six and A half percent in their branded entity. And that entity is now different ipo. So we are a minority. So we are no more running that business. Okay. Basically, yeah. So basically this will be under the shareholder. Correct. So are we not having any plans to.
operator
I just request you to rejoin the queue, please.
Siddharth
I have just. I’m not asking you questions. Just if you can just let them answer once.
operator
Okay.
Atul Lall
We didn’t get a question.
Siddharth
Can you come? So do we have also plans to, you know, run this separately or. We want to be at, you know, kind of investors in this. All right, thank you. I’ll get back in the queue. Thank you.
operator
Thank you. The next question is from the line of Aditya Ghartia from Investec. Please go ahead.
Aditya Bhartia
Hi, good evening, sir. So my first question is on. Good evening, sir. My first question is on the Longshare jv. Earlier we were having just a contract with Longshear. Now we are going the JV route. Just wanted to understand the rationale for that and how volumes are likely to be shaping up versus what our initial expectations were. That’s the first question. And the second and related question is on some of the JVs and arrangements that we are now having with Chinese companies, whether it’s Longshear or Vivo or hqc. If you could just kind of give us some indication about what the status of government approvals is.
Are we seeing any challenges around that?
Atul Lall
So in Longshare, it’s one of the largest audience globally in the space of mobile and other IOP products. We are having a 7426 KB. Our information is that we’ll be getting the PN3 approval very shortly now in the mobile space, they are a large player with a large customer base and they’re a large outsourcing partner of various global brands, getting even beyond Chinese brands. And this firms up our relationship and secures our business in also the post PLI scenario. Further, it helps us in deepening the manufacturing because they have a huge strength in supply chain.
And also they are helping us in expanding the portfolio beyond smartphones. Further, there is also a commitment of setting up a joint design center. So for us strategically, it’s a very important move in becoming a much larger and much deeper player in this whole ecosystem. The second JV application under PN3 that we applied for is for a display module with HKC. HKC is one of the largest mobile fabs within top five. And in phase one, we’re setting up a unit with a capacity of 2 million displays per month, which is going to be for mobiles which is going to be expanded to 4 million.
Also we are setting up a line for 1.8 million of notebook displays and also these lines are fungible for automotive displays both for two dealers and four wheelers. We are looking at a business case for setting up a TV module display line. So we are expecting to make the CAPEX over a period of time of almost $130 million. The factory of 400,000 square feet is under construction. It’s going to be handed over to us. I think in next 45 days or so we will start handing over in this. The JV application is under approval. The PNC is under approval.
We are pursuing with the government. We feel that we should be able to get it in a couple of months. In any case, the execution of JV or execution of this project is not hinging on the PN3 approval. The project installation, the project implementation is carrying on parallel. The third is our JV application under PN3 for a regulation of 51% of the manufacturing arm of Vivo and that’s also under evaluation. That’s going well. We feel that we should be getting it again in next 60 days or so and post that the consolidation and will start happening among the fresh applications for QTech.
We don’t need a Pepn 3 because the unit was set up before the PMP modification came. It’s going to be something similar to a requisition of ismartu in the case of Ui Chongqing. We are going to be filing a PNC application. So yeah, once the binding time sheet has been signed and the teams are going to be working and feel that we should be filing in the PNC application in next 30 to 45 days.
Aditya Bhartia
Understood sir, understood. And just one last thing. On lighting exports, if I heard you correctly, you spoke about some export order from one of the US retail companies. If you could just throw some light on that and how we are looking at the lighting business after the JV with signify.
Atul Lall
So before answering to your question on exports, I’ll touch upon that slightly later. Let me give you the business thesis behind the lighting venture. You see, please appreciate lighting globally and also the case in India, particularly the consumer facing lighting. And in the domain in which Dixon operated, which was largely LED bulbs, downlighters and tube light batten, there has been a huge deceleration in prices and also huge commoditization. So that’s the reason we went in for this joint venture, a 5050 joint venture with Signify. So more volumes are going to Come more than that, what happens is that it shifts, shifts our manufacturing footprint to premiumization.
The product portfolios being expanded into is largely on the premium side. And this new product portfolio and we are working on hundreds of new products because the combined strength of Signify, RND and Dixon R D is working on that. Some of them are existing solutions, some of them are new solutions, is going to be not only for Signify but for all the other existing customers. Further, it helps us in accessing the global market. So we are excited about it. We feel there’s going to be a significant growth and also this operating leverage. So one, it’s going to be heading towards premiumization.
Second, it’s going to give us an operating leverage to manage our costs better. So that’s the thesis on which we are working and we feel that it’s going to give us results. Now on the export side, there is a large retail chain and not in a position to share the name of it, which has placed on an order on us, which is a pilot order mainly in the area of strips and ropes, strip and rope lighting which is going to be executed in this quarter. We feel that this should scale up over a period of time.
Aditya Bhartia
Understood sir, that’s very helpful, thank you.
Atul Lall
Thank you.
operator
Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead.
Madhav
Just wanted to understand the, how the valuation was arrived at for the Qutech acquisition. So if the revenue is about 2000 crores, 5 6% EBITDA margin and if it’s growing to like 5000 crores in 4, 5 years time, just, just you know, if you could help us understand how the valuation was right there at about 1000 crores for the entity.
Atul Lall
Yes. Basically the revenues in 2004, they have an EBITDA margin of broadly 77 and a half percent. So broadly at 150 crores of EBITDA and 70, 75, 72 crore kind of a pad is the last reported numbers.
So if you look at the valuation, the 550 or 15 times of, 15 times of broadly pad that we had given or in terms of eBay, the EV, but that will be closer to nine, 10 times. Okay, now I’m just trying to understand like how does the valuation get arrived at given where the sector trades at in India and the growth is pretty strong like you know, two and a half time growth in sales in like four, five years time. So just trying to understand the valuation map, like is it, how, how does that get arrived at? It’s a negotiated valuation and it’s basically both the.
Both the partners are bringing their own synergies on the table. So we bring in a large Android ecosystem, we’re bringing a large customer access, they already have the technology and so both the partners are bringing. So it’s a negotiated kind of a deal. There’s a specific. It’s more of a negotiated kind of a deal. We think that both partners can bring in their respective synergies over a period of time and together we can make this business scalable for from 2000 or crore to 5000 crores. And also we feel confident that with both deepening of manufacturing happening in India and also to take it also by leveraging on this ECMS PLI scheme this margins potentially which is 77.5% can go to 9 and a half percent in the coming years.
And just the smartphone volumes please for Q1. Thank you. The smartphone volumes for Q1 was almost 9.6 million. 9.6 million. 9.66 million. And the feature phones. Feature phones is closer to 5.73 million. Okay, thank you.
operator
Thank you. The next question is from the line of Piyush Khandelwal from Motilal Oswal. Please go ahead.
Piyush Khandelwal
Thanks. Thank you. Atisha and Saad, I just wanted to ask do we have any plans to get into the bare PCB manufacturing as well? Because that might help us in getting more of micro integration as well.
Atul Lall
So Puge, as of now we’re not pursuing it. We were working on the strategic acquisition because the candid we were working on a very tight timeline so that we can file the applications of ECMS and leverage the government policy framework. So as of now no, but definitely we feel that PCB A is a very large opportunity. Now the next phase of mine is to create a business resource and a strategy for pursuing that opportunity. Maybe something for industrials automotive PCBA domain. We are going to aggressively pursue.
Piyush Khandelwal
Okay, just the reason why I’m asking this because government is providing a subsidies anyways in this latest component PLI scheme we can anyways take an advantage of that. That will be much more lucrative as well. Apart from just CCBA which is which you said a very very lucrative approach.
Atul Lall
As of now Piyush we are not pursuing at least the ECMS scheme for. PCB so far Piyush focusing on other components. But yeah we feel that other components. You see my. Our sense Piyush is that there is a large surplus global capacity as far as PCB is concerned. Bare PCB second also there is no duty arbitrage. It’s an ITA1 category. So the government cannot create a duty arbitrage in this particular company. So the financial matrix is the same but I think it’s a mesh metro perception and each business was having his own view and we have pursued the other parts of the component system.
Piyush Khandelwal
Got it sir. Thanks.
operator
Thank you. The next question is from the line of Ankur from HDSC Life. Please go ahead.
Unidentified Participant
Yeah, good afternoon sir. Thanks as always for your time. Two questions on the cell phone business. One obviously Q1 has been very strong volume growth, again extremely strong. And I think in one of your. Comments you said you’re Looking at another 15% Q on Q growth as well given the way order books are with you. So if you could just help us.
Atul Lall
What’S driving that growth? This is also scaling up of expenses for one of your anchor clients in the U.S. is it more domestic volumes, new customers? So just some more insights into what’s driving that growth. And if I remember right, you said about 40 to 43 million annual numbers for the cell phone business. So are we broadly sticking to that? So our order book looking good for a smartphone Sauravj shared the number. We did around 9.5 and 6 odd billion in the Q1. The order book is I think we should be somewhere around 1112 billion.
Now this is a mix of better performance of our customers both in domestic market and also a significant flip of our anchor customer for global markets. The Q2 looks good and we are confident that our final numbers of 42, 43 million we’re going to hit. Please appreciate all these numbers we are talking about without the Vivo share.
Unidentified Participant
Yeah, sure. Okay. Okay. And just a follow up there. You know, given that this pli, you. Know, obviously comes to end in and. Our guidance of course is to get to 60 million next year. And I know this question may have been asked to you earlier as well is how do we both retain and. Take on more customers given that the. PLI would not be there? So are we cost competitive enough? I know customers could also be picky given our relationship with ODMs and the. Kind of scale we have. But if you just spend a minute.
Atul Lall
So it’s a combination of primarily three factors. One is a deeper relationship with the customer and a large scale which generates an operating leverage. Second is the nature of our relationship with the customer is bound through JVs and also vivo is through a JV roo. The third is our foray into backward integration of camera modules of displays. Now these gives us a significant Advantage and gives us a comparative edge. So we have done the number crunching and we feel that we will be able to more than adequately compensate for the PLI component.
So that’s what the strategy is.
Unidentified Participant
Great, thank you. Thank you so much. All the best. Thank you. Thank you.
operator
Thank you. The next question is from the line of Vikram Srivastava from Phillipcapital. Please go ahead.
Vikram Srivastava
Hi sir, just a couple of questions. Firstly sir on the camera expected revenue. Currently QTech is doing 2k crore revenue for 455 crore camera modules. Correct me if I heard it right, but I heard you said 20 crore camera modules expected. So if I just multiply it proportionately, revenue should be 8k crore, right? Or is it 5k crore?
Atul Lall
So you see the what I was talking about entering most of the addressable market. So the revenue that we have taken in a budget is a certain percentage of addressable market.
Vikram Srivastava
Okay, so you are seeing out of 20 grade will do some volume and. That’S why 5K, that’s understanding, correct?
Atul Lall
That’s right.
Vikram Srivastava
Okay sir. And so secondly just a quick follow up on a minority interest because correct me if understanding is correct. What I feel is the noted is primarily derived from IceMart 2 and the Airtel subsidy. So both these segments have gone up. Qoq still minority interest has declined. Qoq. So can you please explain where the disconnect here?
Atul Lall
Yeah, so basically one, you’re absolutely right. One is on account of Ismartu Sapina is called as a telecom JV with Ater as a 49% partner and also the Californics which is basically a genius helps with imagine marketing or for the both brand.
So last the last quarter I think so we also had some members coming in from our ail Dixon which was basically sold out subsequently. So that is the only difference. And also. Yeah, so that’s mainly the end.
Vikram Srivastava
Got it sir, Got it, got it. And then lastly the 15% QoQ working was expected. Is it fair to assume that revenue growth will be in line or better than this? Should be in line. It should be in line. Okay, thank you sir.
Atul Lall
Export revenues in Q2 so yeah, it can be slightly better.
Vikram Srivastava
Thank you, thank you.
operator
Thank you. The next question is from the line of Anupam Goswami from Certlive. Please go ahead.
Unidentified Participant
Hi sir. Overall let’s say non mobile phones. Where do you see the size of. This growing in the next three years. And what are the categories to lead this?
Atul Lall
So when you’re looking at the non mobile business, we feel that our Telecom business in a year or so can touch a revenue of almost 5000 crores. We feel that in a couple of years our refrigerator business because in phase one we’re expanding our capacity from 1 point to 2 million and then to 3 million can be somewhere between half thousand crores. Washing machine, we are further expanding the capacity from 3 odd million to 3.8 million. The current revenues of almost 1200 crores can go up to 18002000 crores. Lighting through a JV we are confident that from 850900 odd crores can double 2000 crores.
So these are the numbers. Similarly with the hairable wearable business there is going to be an organic kind of a growth. The new verticals which we are pursuing is mainly the IT bureau which we are really focusing up to ramp up. We feel that in a couple of years time that again revenue can be sundered at the range of three and a half thousand crores. Okay, got it. So I’m going to the website that we largely captured. So that’s going to happen. That’s going to help us in improving our printed markets.
Unidentified Participant
Okay. Okay. So one more question. There has been reports and media news also on the Motorola sharing of spreading its or distributing its own EMS manufacturing. So are we losing any share to on Motorola or any other long share or anywhere?
Atul Lall
So Motorola has got another EMS. But please appreciate that almost 80% of Motorola requirement and much more than that is with us.
Unidentified Participant
Okay, thank you sir.
operator
Thank you. The next question is from the line of Naushat Chaudhary from Aditya Birla Mitchell fund. Please go ahead.
Naushad Chaudhary
Hi. Thanks for the opportunity. Two questions. First on the we are doing multiple, we have multiple projects in hand. Many of them are new for us. So just wanted to understand from a management bandwidth point of view we can if you can, you know, help us understand how are we positioned, what are the key headings we have done in last one year and what are the gaps or is there any difficulty in terms of, you know, fixing the requirement of the management.
Atul Lall
So undoubtedly we are on a significantly aggressive growth path. So that talent acquisition is an ongoing process. We have recently hired a vice president of strategy and digital transformation. We have hired vice president for our components business. We have hired an expat from Taiwan who did display manufacturing and business. We have hired a Korean expat who head our R and D for washing machines and appliances. We have hired a vice president hr. So many, many hirings are on. But of course it has to be scaled up much more. So we are working hard on the talent acquisition and I think today we are in a sweet spot wherein we are able to get the talent.
Naushad Chaudhary
And second on the cell phone business, just wanted to understand does your export business give you better ASP versus domestic? And if, if that is the case can the productivity per staff or, or straight to the margin of export business could be better than the domestic.
Atul Lall
So ASP for export, which is largely at present of our angle customer is almost similar to a domestic asp but exports is a complex business and there are some ramp up requirements therein. We have to invest more in the organization. So the margin levels finally is going to be similar but initially the costs are going to be more but finally the margins are going to be similar.
Naushad Chaudhary
All right sir, all the best. Thank you.
operator
Thank you. A reminder to all the participants, you may press Star N button to ask question. The next question is from the line of Abhishek Ghosh from DPS Mutual fund. Please go ahead.
Abhishek Ghosh
Hi sir, am I audible? Hello. Yeah, thanks for the opportunity sir. Just in terms of, you know if I broadly look at your FY27 mobile guidance of that six, six and a half crores your market shares will be fairly high at probably 45, 50% if we exclude some of the brands which typically don’t outsource. In terms of the long tier G that you’re kind of announcing, you think there could be upsides to that and how should one look at the export mix as far as the RFA27 mobile targets?
Saurabh Gupta
So yeah, there will be a long share, there’ll be an upside to that number that we are talking about. And exports we feel in 2627 like this year we feel the export last year Is, was around 1600 odd crore. We feel that the current year of 2526 should hit around 7000 crore. We feel because they are working on another large export opportunity. I can’t share the granular details. As of now we see that this number of 700,000 crores can ramp up to almost 112,000.
Atul Lall
So basically Abhishek, the way you should look at is the number may be 65 million or 6.5 crores which you mentioned, but that would have a decent export element also. So if you exclude that then our market share may not be that much as compared to the number that you just mentioned.
Abhishek Ghosh
Got it, got it. And does this JV also open up some of the export opportunities for you? So the long tier one which we kind of asked.
Atul Lall
Start with be largely.
Saurabh Gupta
Domestic initially it will be Domestic Abhishek. But yeah, over a period, over a long term period, midterm period, yes, it can open up opportunities.
Abhishek Ghosh
Okay, great. And since the last question is in terms of the margin profile for the mobile segment, with the, with the, you know, backward indication we are doing with the JV partnership and other things there, you move in from a 15, 17% of bill of material to almost something like in excess of 30, 35 to 40% and PLI going away in some time. How should one, you know, broadly look at the margin trend as far as the mobile is concerned? There’ll be also an operating leverage factor also.
So how should we look at it?
Atul Lall
Yes, broadly the way the math that we have done, we think that in 2728 and of course a large part of it will start affecting in 26:27 when the PLI also goes away in 26:27. We think we can expand the margins even after taking into account the PLI margin, which is our share of PLI margin going away. We can expand the margin to almost 120 to 130bps in 2627 and which should even be higher in 2728 once it is completely ramped up and we have expanded expansion of mobile displays, we have more TV and automated displays coming in. So we think 2728 which can be a further margin expansion as well.
Abhishek Ghosh
Great. Sir, thank you so much for answering my question and wish you all the questions.
operator
Thanks. Thank you. The next question is from the line of Neeraj Jain from BNP Paribas. Please go ahead.
Neeraj Jain
Yeah. Hi sir, thank you for the opportunity. So my first question is on the Inventech jv. Just wanted to understand what kind of. Products we are working on for under. This JV and rlp. When we say that we will also be getting into the servers. So does that include a part of the broader addressable market of the overall. Servers in post is around $5 billion. So. So just wanted to get a better. Sense of what exactly are we looking to get catered to under this JV with Inventech.
Saurabh Gupta
So this is a 6040 JV wherein we have 60% and Inventech has 40%. It’s going to be for notebooks, it’s going to be for aios and also it’s going to be for servers. And Ventec is one of the top most in the top five global ODMs in the IT product space. And also they want to help us with the backward integration play. So this JBO cars with Chongqing UI that is A large vendor to Inventex and hp. Also we are exploring the possibilities of SSD and memory modules in the jv.
So this is, this is the mandate for this jv.
Neeraj Jain
Sure. So this SSD and memory modules would be with some other partner. Right.
Atul Lall
So we are evaluating that some of it inventing as an announced capability.
Neeraj Jain
Got it. And so second question on LongShield JV. So just wanted to understand do we have a similar kind of agreement that we had that we have with in which around 65 to 70% of their volumes in India are tied up under that jv? So how are we looking at like a difference in the incremental volumes that might come when we go through a JV route?
Atul Lall
So as I mentioned to you to the earlier participant when Abhishek was asking that question, so once the JV is formed we feel that practically all loan share volumes are going to be with us which is going to be further upside.
So basically Longstreet is a large ODM partner for a lot of mobile brands so they have a very deep relationship with them. So we feel that once the GV is concluded and they also happen to be an equity partner in that, then those volumes can potentially be part of the gd.
Neeraj Jain
Sure sir, that’s it from my side. Thank you and all the best.
operator
Thank you. The next question is from the line of Girish from Ms. Please go ahead.
Unidentified Participant
Yes sir, thanks for the opportunity. Just couple of questions if I missed. Sorry. On the capex part I wanted to understand the outlook for this year and next year for the core EMS business and the component across the three portions which is display modules which HKC the kicks that you’re likely to do on camera modules with the new tie ups and the peripheral tie up and then I had a follow up. Yes. So camera broadly we had mentioned that we will be doing a capex it will be a combination of buying out there, it’s an acquisition so it’s a combination of buying out their existing shareholders and also putting it some primary money in the company to meet the capex and also deepen the level of manufacturing.
So camera and displays put together we would be doing the capex closely to almost I would say 750 to 800 odd crores this year and also some part and broadly the other part of the capex the 300, 400 crores can be the expansion of capacities and and other things. And on the core EMS side how much would be the capex that you would think this year?
Atul Lall
This number that Saurabh just Mentioned includes that. Yeah. 750 crores plus 300 crores. A thousand crore across all. And sir, what is the current margin profile that you have for the camera module acquisition and what are the working capital days if you can help on that. So the EBITDA margin was somewhere in the range of 6.5 to 7%.
Unidentified Participant
Answer. Yeah, sorry, I was just inquiring this in context of tariffs because presently I believe there is a 10% import tariff that exists on camera modules and margins of this entity at six and a half seven percent. So what kind of, I mean is there like a royalty fee that this company is paying to the parent or how is the max working out for them? And you mentioned in one of the interviews to the media that you’re looking to increase the margin. So just wanted to understand the levers to increase and how that will come through on the margin side.
Because previously on camera modules I believe and on all components you’ve been talking about mid teens number on margins but this number is quite low. So just wanted to reconcile what value addition will happen to increase it versus what we were earlier thinking of mid teens to begin with.
Atul Lall
In the mid teens the for the camera module we never mentioned it’s going to be mid team. Please appreciate that when you are doing the manufacturing in India and to secure more order you have to share some advantage with the customer also that’s where it makes the business case. So we feel we plan to invest to further deepen the manufacturing and also there’s going to be a PLI coming in into this business through the ACMS group. So we are confident that the EBITDA margin in this business would come up to almost 8.5% 9%. There’s a big combination greesh of operating leverage coming in on account of increased volumes of basically our customer access to them. Second, the PLI benefit as part of the ECMS scheme Third is more deepening of manufacturing. So they are doing a particular manufacturing process which once you put in money in the company which also gets qualified for the ECMS application. ECMS committed CAPEX 1. It deepens the level of manufacturing. So deepen you’re able to capture more value here. So which increase the margins and then the operating leverage and then the PLI benefit. So we feel confident that the 7, 7 5% margin can potentially go to 9 and a half percent margin over the next couple of years.
Okay, and last question was just around.
operator
I just request you to follow that for the follow up question. Yeah, thank you. The next question is from the line of Qs. Pandya from ICIC Life Insurance Co. Ltd. Please go ahead.
Unidentified Participant
Thanks a lot. Just one question, two questions. So first on the broad timelines of all these JV so Inventech, Chingtong and HKC DV and as well as what kind of ramp up we should expect so next two years considering that they are a little new category and it takes some time for setting up plants and approval as well. So how should we think about commissioning and ramp up of these DVs? That is first question. Second, on the mobile export side, I mean is there a business case except for US where there are some restrictions on Chinese manufacturing to make phones from India and export which is competitive versus China, does that make any sense in terms of the commercial? That is second question.
Atul Lall
Quite a quick question. QTech is a running factory. So once we are able to conclude the deal which we feel should happen for the next two two and a half months, we will start consolidating the results and then we start ramping up as we have shared in our deliberation that finally we aspire to reach a revenue of 5000 crores over the next 4 to 5 years. As far as the HKC display unit is concerned, the construction is on. We are targeting to do the trials and pilots in Q4 of the current fiscal and the revenues will start getting booked in Q1 of 2627.
Finally the aspiration is that we should be able to do 4 million units of mobile displays, 1.5 to 1.8 million units of notebook displays and we feel that we should be able to do almost 2.2.5 million units of the automotive displays. That’s the plan. The Inventech JV we target to start in Q4 of the current fiscal or Q1 of the next fiscal or the new JV of Chongqing U high the planned resistance being drawn, it’s going to take some time as far as the BIMO JP is concerned. We’re waiting for the PM3 approval and then we conclude it.
And the second question on the export opportunity and export, we’ve already started exporting to Africa and we feel that we will be able to meet the cost targets and this is a large opportunity that we’re working upon with one of our partners.
Unidentified Participant
Okay, so thanks a lot and all the best.
operator
Thank you. The next question is from the line of Teena Virmani from Motilal Oswal Financial Services. Please go ahead.
Teena Virmani
Congrats for the chat number sir said. My question to some extent. Yeah, my question to some extent is. Already answered regarding the camera module and precision components. Just wanted to get some sense from. You regarding the margin improvement that can start happening. Can it start getting reflected in the financials from FY27 first half or second half once the PLI goes away and simultaneously your display and camera module and precision components simultaneously quarter by quarter they can add up to the margin improvement.
Atul Lall
That’s what we are working on. Tina. It’s going to be slightly slow of enhancement of the blended margins through the component route in first half but I think second half we’re confident. But something like cameras and display plays would start to reflect in the margin. Something like precision components may take some more time. Yeah, but effectively the full impact could start coming in and in second half of next financial year or somewhere after the first quarter.
Teena Virmani
Okay, so you are in discussions with the existing clients also to accept the camera module and the displays that you all would be manufacturing.
Atul Lall
That’s right. That’s a teammate. See our existing customers, the brands are already using QTech. It has to be further.
Teena Virmani
Understood. And lastly just a small question and. How is the scale up expected from. This vivo JV like the 60, 65 million volumes that you have mentioned, does it include Vivo volumes or this is not including Vivo volume?
Atul Lall
That includes the Vivo volumes. A large upset would come in from Vivo volumes which would. Yeah. Lamborghini is doing almost. IT has almost 22% share in the Indian market which is almost 30 to 35 million numbers. And 2 thirds of that volume is going to be done in jd. So finally when everything is consolidated we expect that volume to be almost 80 to 20 billion. That’s how we are talking about because in the current fiscal itself we are targeting almost 40, 42 million and 20 to 25. That 20 million is going to come from the Vivo market.
Teena Virmani
Why this daily but that that may come maybe by end of FY26 industry. Thank you sir.
operator
Thank you. The next question is from the line of Amber Singhania from Nippon Mutual Fund. Please go ahead.
Amber Singhania
Yeah. Hi sir. Thanks for taking my question and congratulations on good set of numbers. Hello, I’m audible. Yeah, yeah, thanks. Thank you. Thank you. Yeah. So just two questions from my side is one, if you can help us understand what kind of volumes launch here do in India currently with the various brands. And second thing is when we will. Be. Backward integration how easy and difficult to get the approvals for various components be your display module. I understand QTech already has for camera module but for the display and others the faster it will be shift for our brands or the brands which we are making for these components. So responding to the first part of our question, our estimate is volumes in India would be somewhere on 25 odd billion.
Atul Lall
Okay. And QTech we explained to you that most of the brands are already using as far as the discipline model is concerned some of the brands are using HKC and for other approvals. China team, HKC’s China team and our India team has already started working with the brand owners because this approval is required in the POC stage. So they are only on the job for getting these approvals done.
Amber Singhania
Okay. But by the time it will be operational we are positive that it should be get approved by then.
Atul Lall
So it’s gonna happen in phases.To supply it through this Android branch. But every model is different. Yeah. So the teams will be working it labeling phases but that. But model by model it will keep happening.
Amber Singhania
Okay, and just one last question if I may. In terms of margins you mentioned about the Qtex 6.7percent margin moving up to 99 and half. Similarly, if you can help us understand what kind of normal margin we can expect in HKC or display model as well as on the mechanics mechanical the numbers are yet to be worked out. It’ll worked out a detailed business plan along with them.
On the on the opportunity side for.
Atul Lall
This intervening, please be rest assured of the mechanicals for the laptop. The margins are going to be very robust. It will also be in double digits. Okay. And this is also double. Double digit. Fine.
Madhav
Thank you. Thank you sir. And all the best. Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of time we’ll take this as the last question. I would now hand the conference over to Ms. Vomika for closing comments. Over to you ma’.
Unidentified Speaker
Am. On behalf of Dan Capital I would like to thank all the participants and again thank you very much to the management for giving us an opportunity to host the call. Thank you very much sir and wishing you all the very best. Any closing comments from your end.
Atul Lall
Thank you Bhumika and thanks all the participants for being with us and yeah we’ve already shared our strategy journey our way forward. So thanks for being our stakeholders and supporting us. Thank you so much.
Saurabh Gupta
Thank you everybody. Thank you so much. Thank you. Thank you Vomita.
Atul Lall
Thanks Vomita. Thank you sir.
Unidentified Speaker
Thank you. On behalf of Time Capital Advisors Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.