Dixon Technologies India Ltd (NSE: DIXON) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Atul Lall — Vice Chairman and Managing Director
Saurabh Gupta — Chief Financial Officer
Analysts:
Unidentified Participant
Tanay Shah — Analyst
Presentation:
operator
Sam. Sa. Foreign. Ladies and gentlemen, good day and welcome to The Dixon Technologies Q3 FY26 earnings conference call hosted by DAM Capital Advisors. 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 your touchstone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Tanesh Shah from DAM Capital. Thank you. And over to you sir.
Tanay Shah — Analyst
Thank you. Very good evening to everyone. Welcome to the Dixon Technologies Q3 FY26 earnings call. Today we have the management being represented by Mr. Atul Lal, Vice Chairman and Managing Director and Mr. Saurabh Gupta, Director. Finance and Group CFO. At this point I will hand 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. Good evening everyone. This is Atul Lal and joining me today is our Director and Group CFO Sourabh Gupta. Good evening everybody. We thank you all for taking the time to join us to discuss our performance and progress for third quarter. Financial Year 2526 Key Highlights for the quarter are as below. Consolidated operating revenues for the quarter ended December 31st, 2025 was 10,678 crores against 10,461 crores in the same period last year. Consolidated operating EBITDA for the quarter was 421 crores against 398 crores in the same period last year. Consolidated operating pack for the quarter was 214 crore against 217 crore in the same period last year. While the electronic market faces near term headwinds from commodity inflation and memory price increase, we continue to focus on building scale, bringing operational efficiency, strengthening relationship with customer, focusing on backward integration and diversification around the core electronics business to navigate the environment.
One important external headwind is a sharp increase in memory prices globally driven by AI and data center demand reallocating the memory capacity away from traditional consumer devices. Industry reports indicate that conventional DRAM contract prices have already risen sharply over the last two quarters with further increases expected in mid-2026 for smartphones and PCs. Memory has moved from being a relatively small line item to one of the most sensitive parts of the bill of material, especially for the lower priced devices. Our returns remain robust with industry leading ROE and ROCE low leverage and a negative working capital cycle which gives us sufficient headroom to invest in capacity components and new categories.
A working capital cycle remains at negative seven days complemented by strong balance sheet reflecting a net debt position of 246 crores. We maintain our return ratios with ROCE at 45.1% and ROE at 32% as on December 31, 2025. Demonstrating the fundamental strength and stability, Dixon has been selected as an ECMS beneficiary for camera modules and optical transducers, marking an important milestone in our expansion into components manufacturing and reinforcing our strategy to move up the electronics manufacturing value chain. We expect to receive ECMS tools for display modules and enclosures shortly. We have built a strong foundation as India’s leading homegrown EMS company and now we are steadily transforming into a more integrated design oriented component bag manufacturing partner across consumer, industrial and strategic electronics.
Now I’ll share with you the business performance and insights in each of the segments Mobile and EMS Revenue for the quarter for mobile and ems business was 9,750 crores in operating profit of 250 crores as per industry reports. Indian smartphone market in Q3 fell by 7% year on year and the decline reflected the usual post festive slowdown and was also stressed majorly by elevated channel inventories for brands, depreciating rupee, softening mass market affordability and moderation in demand due to persistent supply constraints and rising cost of memory chips. The potential cutback in the smartphone shipments comes amid the smartphone brand struggle with an unfolding super cycle in the global memory sector.
The world’s top suppliers are shifting the capacity for artificial intelligence applications resulting in a supply squeeze for a smartphone segment. Our new 4,000 sq ft facility for 7,426 launcher JV for manufacturing with smartphones and other electronic devices is expected to start operations by Q2 of 2627. Construction of a 1,000,000 sq ft facility in Noida with higher capacities for our anchor customers is expected to be completed by Q1 of financial year 2627 and mass production to start by Q2 of 2627. Construction of our facility for display modules in 7426GV with HKC is nearing completion. In the first phase we are creating a capacity of 24 million per annum for smartphones and 2 million units per annum for notebooks, largely captive consumption and automotive combined and trial should commence by Q2 of next fiscal.
In the second phase we enhanced the capacity to 55 million units per annum, largely captive for smartphones and 4A displays for LED TVs. Also we have received a very encouraging response from all the major automotive players. We’re extending the capacities and deepening the level of manufacturing of camera and fingerprint modules for smartphone and target to expand volumes of smartphone camera modules from 40 million units in this fiscal to 190 to 200 million units per annum. We remain confident of getting the PN3 approval for our vivo JV soon. Consumer electronics led TVs and refrigerators revenue for the quarter was 567 crores with an operating profit of 24 crores.
This quarter witnessed a temporary moderation industry demand primarily driven by post Diwali seasonality, withdrawal of consumer offers and elevated channel inventories. Despite these short term headwinds, our market positions strengthened meaningfully and remain optimistic for recovery in volume for Q1 of next fiscal as channel inventories normalize, our strategy is to increase market share in large screen TVs, smart and connected models and platform where we can differentiate on cost, quality and speed. We have launched production of high end mini mini lit TVs enabling our customers to tap into fast growing premium segments and to continue to expand our technology leadership by offering a comprehensive operating system portfolio and are the first ones with use features such as inbuilt Clara functionality and remote finder enhancing end consumer engagement in product distinctiveness.
Refrigerators Q3 seasonally the biggest quarter for the refrigerator industry with demand typically ramping up from the January ahead of the summer season. The softness was further distressed by the transition to the new energy efficiency norms effective January 2026 resulting in brands consciously limiting inventory of current norm models due to impending one star downgrade. Despite these industry wide constraints, we continue to strengthen our product portfolio and customer base. Alongside our strong turbines and direct cooled refrigerators, we successfully introduced many bars in 50 litres and 100 litres categories which have received an extremely encouraging market response with entire available capacity already booked.
We are also onboarding leading brands including Haier in this segment that introduced a new 170 liter low cost refrigerator model targeted at export markets which has seen healthy traction across both export and domestic channels. To support future growth, we have commenced construction of phase expansion facility that is another 375,000 square feet facility which will enable manufacturing of two door refrigerators, deep freezers, busy coolers and side by side refrigerators home appliances. Revenue for the quarter was 355 crores. Operating profit was 41 crores with an operating margin of 11.5%. Washing machine portfolio demonstrates full ODM capabilities right from design support to testing and manufacturing.
We continue to add capacities, introduce new product categories and more features and value added offerings and increasingly focusing on localization of critical components. Our expansion into new category of semi automatic washing machines in 16kg and 18kg capacity is completed and mass production will start in March 26 which will be in the first across the industry. Our new facility for front loading washing machine is ready and mass production to start by Q2F financial year 2627 with annual capacity of 300,000 units. Production started for robotic vacuum cleaners with Eureka foams with healthy order book and we’re actively exploring other appliances like microwaves and kitchen chimneys.
We’re driving several initiatives to expand automation across operations while strengthening the industrial engineering function to improve efficiency, productivity and cost optimization. Lighting the JV would signify to continues to deliver exceptional results and partnership is driving robust higher double revenue growth, enabling better asset utilization and deepening localization levels. We have significantly enhanced our market share in LED bugs battens downrighters through this partnership and positioning us firmly at the center of ongoing consolidation within the Indian lighting industry. We are seeing several small and subscale turf in the lighting ecosystem struggle to keep pace with the required investment in technology quality and compliance which is creating a favorable comparative backdrop for a well capitalized integrated platform like ours.
We are moving up the value curve with an increasing focus on the premium and technology LED lighting solutions which supports higher realizations and an improving margin profile. In the medium term leveraging our manufacturing expertise, we see strong potential to export high quality LED lighting products to markets such as Europe, uk, UAE and us. We continue to focus and invest in automation to further boost operational excellence and keep investing in backward integration to improve our cost efficiencies. Telecom and Networking products Home broadband penetration in India continues to grow at a very fast pace and we have been continuously building up more capacities and we also have a stable order book for our anchor customers on CPE devices which will continue to be a major contributor to remaining we have started manufacturing of highly complex telecom backhaul microwave radios for a US Telecom brand.
We have localized components such as mechanicals, adapters, plastic moldings and sheet metal. We have been selected as an ECMS beneficiary for optical transfer serials in line with focus on diversifying into technologically advanced product categories and will start manufacturing next fiscal with continued momentum and developments in the segment we target to further strengthen of our market position with market share gains in the domestic market, laptops, tablets and IT hardware products. The segment saw a healthy uptake in revenues in the quarter and we have a very strong order book for the next financial year and capacity enhancement is going on.
Our dedicated IT hardware product manufacturing unit in Chennai has successfully stabilized mice production of laptops and aios for hpe, Acer and asus. We have bagged order for desktops from one of our customers and we started manufacturing in Q4 of this fiscal in July and also in active discussion with an existing customer for manufacturing of tablets. The new facility being developed is sent to our existing facility and there are 6040 KVU within Ventec is near completion and mass production of SSD and memory modules is planned to begin Q2 of 2627 which will deepen the level of manufacturing and contribute towards improved margin in the segment.
We’re also in deep discussion with the GEV partner for manufacturing of servers to capitalize on the fast growing market Rexen Dixon Electronics Rexen JV for ACPCB’s continues to perform well and remains a strategic asset in our component portfolio. We expect a robust demand for AC this season and would scale up our capacity by operationalizing a new upcoming Chennai facility by end of Q4 of current fiscal. With that I’ll conclude with my remarks. Sauram and I are happy to take any questions. Looking forward to the same. 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 their Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Uncle Sharma with HDFC Life. Please go ahead.
Unidentified Participant
Hi, good afternoon. Thanks as always for your time. Couple of questions on the cell phone side. One if you could just help us with volumes for Q3 and more importantly, you know, how do you see volumes. For both 26 and into 27 versus the earlier guidance that you give us. The smartphone volumes for Q3 was around 6.9 million and yeah, overall in nine months we have done a volume of closer to 27 million. Okay. Q4 volumes are expected to be somewhere between 7 to 7.5 million. For 2627. The numbers are still being bugged out. It is. The situation is slightly fluid because of the memory prices and also we are confident and close to our government approval for Vivo. So slightly premature to commit on a number for 2627. Okay, fair. And sir, if you could just help us what’s leading to this delay in the Vivo jv? Is it just procedural? Is there anything else you can talk about because it’s been a while since, you know, we’ve been expecting this to come through.
Atul Lall
Yeah, I appreciate it uncle, but we feel that there are fairly close to it. Yeah. And it should happen shortly. That’s where we are. Okay.
Unidentified Participant
Just on the margins, you know, one was, you know, how do you really see margins more so with the PLI, at least the original PLI benefits kind of going away as we head into 27. So how do you see cell phone margins? You have obviously I expect some delays in the ramp up of our component JVs. So there how do you see margins kind of shaping up, maybe some dip in the first half and then catch up in the second half and follow up would be, you know, we’re hearing about a second PLI also coming through for cell phones.
If you could please talk about that. Thanks.
Atul Lall
Yeah. So as we have been mentioning in our previous earnings calls, also the mobile, mobile business margins are closer to three and a half percent which has got PLI as well. Probably 0.5, 0.6% of our share of PLI come which is, which is getting consolidated in these margins. So one to say that PLI will get renewed or not. Sure. It is very difficult to say right now. So coming in there, Ankush and other stakeholders here, there are deep discussions happening between the industry and the government. We are optimistic about it, but to say anything with certainty is not a fair statement on my part. Other discussions on is there a positive response? Yes, there is a positive response, but is it an absolute certain thing to comment? No, it’s very difficult to say. A lot of data has been shared. One view is of course they want to give more support to the sector till the time that component ecosystem gets created. But it’s very difficult to maturity. So assuming a case where it goes away, assuming the case, worst case doesn’t get extended, then half a percent of markets will get impacted in our mobile business, which we have communicated earlier as well. But we feel confident that with our backward integration play we will be able to not only overcome that margins, there will be additional margins which will come on a kind of backlog integration play.
But that will largely play out in 27, 28. But because both in QTech we are doing a large capacity expansion, we are deepening the level of manufacturing which will take us six, seven, eight months. And also the display, the machineries have been ordered and some of them will get ordered in the next few months. But and the trials as communicated in the remarks will happen somewhere in Q1 mass production should start towards end of Q2, so there can be some quarters where the margin impact can reflect lower. Assuming a case if the PLI doesn’t get extended but 27, 28, we are absolutely confident that there should be a decent margin expansion largely on a component play.
So on the display side, qtic, the capacity expansion is already on. Finally we’re going to expand the capacity from current 40 million to almost 190 million. In the display thing, the building is ready. The first set of equipment for 2 million per annum, 2 million per month mobile phone capacity and 2 million per annum for display for notebooks and automotive is already arrived at ports. It will take two to three months for installation and we feel that sometime by June, July, the trials in the commercial production should start. Hello, are you there?
operator
Yes sir, the current participant has disconnected.
Atul Lall
Okay, so we can go to the next.
operator
Yeah, the next question is from the line of Samit Sinha with Macquarie Capital. Please go ahead. Sameet, your line has been unmuted. Please go ahead with your question. Mr. Samrat, your line has been unmuted. Please go ahead with your question. As there’s no response.
Unidentified Participant
Hello? Sorry, can you hear me? Yeah, okay, sorry about that. Yeah, so yeah, thank you. So a couple of questions. One is Mr. Lal, I mean obviously memory price has been going up for the last two quarters. There’s some news stories about display prices also kind of going up. So it seems like other part, other components will also be impacted. How do you, in your opinion, how are the OEMs reacting to this? What’s their. They’re obviously we’d probably see some de speccing, you know, instead of 16gb of memory they’ll probably go down to 12. Keep the pricing the same, higher end phones, probably more price insensitive.
So can you talk about that? Because I wanted to understand in that context what is, you know, how about your economics, would that stay stable? And my second question is, you know, reading about some media reports about Motorola saying that they’ll be using you for the camera module in their phone. So congratulations on that. Have other OEMs also signed up and if yes, can you name them? And then I have a follow up question.
Atul Lall
So on the first part of your question, as far as the unit economics is concerned, for us it’s a pass through for us. There is no impact as far as the value chain and impact of the margins is concerned on an absolute basis. What happens is that when the price increases and increases so significantly, everybody is expecting an impact on the demand side. Sure, that’s the concern area, and as you very aptly captured, one feels that the demand of the mid segment and the lower segment is going to be impacted more. So that leads to an uncertainty element in the whole business and that’s where we are.
However, you know that as far as economics is concerned, for us, it’s a pass through the second part of the question on the camera module. Yes. So in QTech, they’re already supplying to Motorola and we have got an extremely positive response from them for expanding this relationship with QTech. In QTech, we’re already supplying to various other brands. We’re supplying to Vivo, we’re supplying to Samsung, we are supplying to Oppo, we’re supplying to all the other brands.
Saurabh Gupta
So they are a big supplier. Sameet, they are part of the supply chain for almost most of the brands in the Android ecosystem. So in Android ecosystem, almost all the brands are our customers.
Unidentified Participant
Got it. Okay.
Saurabh Gupta
The camera modules till now, which are being imported, we please appreciate the market of camera modules is approximately around 350 to 400 million, which is largely being serviced through imports today. We want to capture and service that market through our QTech partnership.
Atul Lall
Yes. And we’ll probably hear more about it on February 1st when the government puts out the budget. Hopefully there’s going to be more incentives for localization. My final question is, and this is. We have also got the ECMS approval.
Unidentified Participant
Right. So my final question is, I think, Ms. Lalan Saurabh. I mean, there’s been multiple dynamics in the business, Right. And I think all of us are trying to figure out what the, you know, what goes up, what goes down. For example, just in the, the fact that phone prices are going up artificially or mathematically, it looked like your margins are coming down. Can you kind of lay out for us a couple of things? You know, you obviously spoke about PLI headwind in case PLI 2.0 doesn’t happen. And can you give us a timing of the Vivo JV so we can kind of model out the different margin scenarios and be able to get comfortable with what things will look like in 2728?
Atul Lall
So we feel that we are close to the Vivo jv. Yeah, because we are pursuing very deeply with authority, but to give a specific timeline is not that easy.
Unidentified Participant
No, I understand. I was trying to get at more from overall perspective. Multiple drivers right now, smartphone input costs going up, you know, PLI getting pushed out. What is, how could margins be going up and down in the next year, next 12 months?
Atul Lall
We still feel that we should be able to have A margin of somewhere between 2.8% to 3.1%, 3.2% in our mobile phone business. That’s how it’s going to look like by the time we start integrating a backward integration play. And then margins would keep on going incrementally up month on month. The timeline for this, I feel to start this operation of integration of components that we’re doing is going to be six to eight months. And finally we feel that almost 70, 80% of our business would be integrated in the component landscape by 2728, which will lead to an overall expansion of margins.
And here I’m talking about the scenario without pni.
Unidentified Participant
Okay, thank you very much.
Atul Lall
Thank you.
operator
Thank you. The next question comes from the line of Vipra Srivastava with Philip Capital. Please go ahead.
Unidentified Participant
Hi sir, good evening. So quickly on the disclosure side, I mean in previous quarters we used to get revenues from iSmart to routers and other segments which you’re not getting from this quarter. Some reason for that why disclosure hasn’t been given for this quarter?
Atul Lall
No, specifically. Then this is a combined entity we look at and ismart is also nothing but mobile phone business only. So we decided to consolidate and show as part of the mobile business. In case you’re looking for separate numbers, you can have a separate discussion.
Saurabh Gupta
I’ll give it to you, sir.
Atul Lall
And so secondly, on the, on the mobile phone volume side, given that your component story, which obviously is a very good value addition, but it’s a function of mobile phone volumes, right? If the industry doesn’t pick up, let’s say next two years, if memory prices continue to remain high and mobile phone volumes remain weak, how confident are you of the confidence story playing out the way you want it to? Please appreciate on a conservative basis the steps that we are taking for growth consolidation in the mobile business. For us, we should be even a conservative basis somewhere around 60, 65 million units. And that’s a large play even for 2728. For our component business, we’re talking at 60, 65 million. I’m looking at 160, 170 million of camera modules, I’m looking at that number of displays, almost 40 to 50 million. I’m looking at almost 1.5 to 2 million of notebook displays, I’m looking at almost 2 million of automotive displays, both four wheeler and two wheeler. So for us it’s a large play.
And for some of the brands we are also working on some increased order book on export side. So those are deep discussions which are happening. We are not in A position to say right now.
Saurabh Gupta
Sure.
Atul Lall
And so is our backward integration strategy. Yeah, there can be some quarters and we clearly mentioned you that they can be five, six months for us to ramp up this for the component play. But we feel absolutely confident about 27, 28. So we are, we are not. We feel confident about the numbers playing out. The only thing can be a couple of months or a quarter delay in execution in integration. That’s all.
Unidentified Participant
Okay, sir. And so last question from my end. Given that, you know, we. We were taking in 20 million volumes coming, coming from Vivo for FY27, we still don’t have approval. I mean, are you sure? Do you maintain this 20 million number for vivo for FY27? Or there can be a downside risk to this.
Atul Lall
See, we feel confident, but everything is subject to that. How soon we are able to get this approval? Because after that it’s going to take a month or couple of months for integration.
Saurabh Gupta
Yes, basically the way you should look at it, the day we get the approval, then it will take us at least 45, 60 days to consummate the transaction. There are a lot of CPs or conditions which need to be closed, which generally would take that kind of time.
Atul Lall
Yeah. So there can be something depending on what time we get the approval. Yeah, so that, that’s how the number will play out. So there is a risk. Right. On Q1 numbers for vivo then, because we are already in Feb. So if you take 60 days, it. Means confident that the Vivo approval should come in soon. We already told that it will take 45, 60 days to close the transaction. Now of course, one can that it’s very difficult to give us any more, any more flavor on this.
Unidentified Participant
Thank you. Thank you.
operator
Thank you, ladies and gentlemen. In order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. The next question comes from the line of Siddhartha Pera with Nomura. Please go ahead.
Atul Lall
Thanks for the opportunity, sir. My first question on the mobile side is we had talked about addition of another local odm. So if you can give us some sense where it is and when should we expect that to come through? And second, on the export side also, I think we were seeing a good traction which also has slowed down. So how do you think exports can be in the next year, given these challenges? And do we sort of benefit out of this European FTA deal which has got signed? And can we sort of look at more opportunities in that region as well?
Saurabh Gupta
So responding to the first part of the question, the discussions with the new customer are on. We feel confident that we should be able to conclude it by Q1 of the forthcoming fiscal. Responding on exports, export, we are pursuing two opportunities. Motorola, it’s already on. We have done exports of almost 4,000, 4 and a half thousand crores in the first nine months. We feel we should be closing at almost 5 and a half 6,000 crores in the current fiscal. We feel that this is going to be the run rate in the forthcoming fiscal with another large partner of ours.
The export discussions are on. Some exports for that brand are already happening. We are planning a new capacity for that to start with 2G phones and then we are going to graduate up to 5G, 4G and 5G phones for this. A new facility is being planned down south in Tirupati. So that’s where we are. So we are still confident about building our export business in phones Europe for phones. You see, in any case there is no tariff on phones in any of the countries. So EU FTA is not helping us on eufta. We are still waiting for the fine print.
We feel that it is definitely going to help us in our lighting business and also in our television business.
Unidentified Participant
Got it sir. So, last question is on the QTech. If you can highlight what revenues have we booked for quarter three and how should we think about the ramp up? Because will you be continually to sell to the external customers or eventually gradually it will only be for captive consumption. So how we should look at the QTech numbers this quarter and next year.
Atul Lall
QTech numbers for quarter three was closer to 400 odd crores and broadly we are looking at a similar run rate of 2000 crores for Qutech. As we mentioned, in the next 8 to 9 months we are significantly expanding the capacity. Last year the volumes was 40 million. This year also the volume should be closer to a similar number of million. But the idea is to take it up to almost 180, 190 million. So that’s the reason the capacity capacities are being expanded, more money is being put into the business and also the manufacturing process has been deepened.
So we are deepening the level of manufacturing so that we are able to capture more value, capture more margins in India. So that is being done. So as of now, yes, they are supplying to some, they are supplying to some of our customers in the Android ecosystem. Some of the camera modules continue to be imported as well. So the idea is a big opportunity to ensure that when the capacities are there then the import substitution can be a big opportunity in itself because we already have a large play with all the customers in the Android ecosystem.
So our target is Siddharth continues to remain the same which we guided earlier. The idea is to take this numbers up to 180, 190 million in the next couple of years, do more manufacturing, increase the margins. And also we are also beneficiary now of the ECMS scheme. So that’s exactly what we’re working on.
Unidentified Participant
Got it sir. Thanks a lot. I’ll come back in the View. Thank you.
operator
Thank you. The next question comes from the line of Aditya Bhatia with investech. Please go ahead.
Unidentified Participant
Hi, good evening sir. My first question is. So my first question is on amount that is due for PLI schemes. Could you just quantify roughly what amount may be due from government authorities in respect of PLI and what would be our portion of it? And in the last few quarters have we seen this amount increasing or delays happening in terms of payments?
Atul Lall
So I don’t have that number right now with me. I can share with you separately but broadly we have been getting our plis from the government. So we have largely. So we’re getting for telecom business, lighting business, some of them. Of course this year numbers will come in only after the closure of the financial year. But those numbers have been coming down. But I can share those numbers separately with you.
Unidentified Participant
Sure, sure, sure. And there’s not been any unusual delay, typically that one year kind of a delay that we used to have. It’s a similar kind of a run rate that we are seeing.
Atul Lall
Yeah, yeah, it’s a similar thing. See, we have already got the PLI up to September 25th in mobile. Right.
Unidentified Participant
Yeah, understood. Sure, sure. My second question is on, on slightly longer term growth levers. Once, once Vivo is in vivo is completely operational, we have camera modules, display modules completely up and running. What are the other areas that we can kind of think about and specifically within this. If you could speak a little more on the export side, you did mention about Motorola and an existing customer. But what can be opportunities beyond these customers on the export side and within the component ecosystem are there new component categories that we can also evaluate?
Atul Lall
Aditya apart from mobile. So mobile you deeply understand the next trigger of growth is Vivo partnership, acquisition of new customers, deepening of value addition by upping the game in display and also in camera modules. The new triggers of growth is our IT hardware business wherein we are really ramping up the capacity and expanding the product portfolio beyond notebooks to AIOs to desktops, tablets and also printers. We are going to be executing and is going to operationalize our JV with inventech in which we’re going to start with SSD and memory modules. We are also going to be executing the project for servers.
That’s a high growth area. Our telecom business is doing extremely well. This year we should have revenues close to 5200 crores. We’re already the largest in India and CP devices namely routers, fixed balance devices, IPTV, set of boxes. In that we have expanded our product portfolio and we have bagged an extremely important order from US customers for complex telecom backhaul microwave radios. It’s going to be both for domestic market and exports. In this we have got in this again we are deepening the manufacturing and getting into the component side. We have already got the ECMS approval for SFPs and optical transducers in which we are going to get into the production mode in the forthcoming fiscal.
Then in our traditional businesses in lighting polestar JV with signify the growth is extremely good. The consolidation is taking place in that industry and we are migrating more and more to the premium end product, high end, high end professional lighting products luminaires and down lighters in washing machines. We are expanding into the front loaders that project the building is ready. The project is in the execution stage and we’re going to be setting up a capacity of almost 300k front loaders. This is going to be operationalized by Q2 end of the forthcoming fiscal in refrigerators. We shared with you that we are expanding our capacity.
We set up a capacity of 1.2 million. Presently at 1.7 the new factories under construction. It will be expanded to 3 million. We have already launched 50 litres and 100 liters. We have already started work on side by side double doors, deep freezers and busy coolers. So it’s going to be a complete complex portfolio. Now we’ve taken a very senior resource in our south campus. Very very senior resource for building our industrial DMS business. So these are the growth trajectories as far as exports is concerned. One of course is mobiles. We see we are going to be.
We are in deep discussions at advanced stages with our strategic partners for building a large footprint down south for 2G phones and then 5G phones. And also once this issue of endo US tariff and now with the indo you tariff being optimized we feel there’s a tremendous scope for lighting exports now. So as of now these are all growth triggers for us for next two, three years.
Unidentified Participant
Sure sir. In terms of tariffs there’ll be Nothing from mobile phones perspective because pretty much everywhere mobile phones are exempt from tariffs. Is that understanding correct? That’s right. That’s it. Perfect. Thank you so much sir. Thanks.
operator
The next question comes from the line of Bhavik Mehta with JP Morgan. Please go ahead.
Unidentified Participant
Hi. Thank you. Just one question. We just wanted to understand what is the update on the long tier JB in terms of the ramp up since it was formed in September? How have the volumes been panning out this year and what could be the.
Atul Lall
Volumes expected in FY27 so long tier JV? We have already got the PN3 approval. We’ll be signing the JV agreement by second week of February. The factory construction has already started. Longship management team has come and parked themselves in India. A new factory of almost 400,000 square feet is under construction. It’s going to be operationalized by second quarter. By first quarter end of next fiscal, initially the capacity being created there is going to be of 18 million units. We’re going to build up that business step by step. We’re also in discussions with them for expanding the product portfolio beyond mobile phones to other IoT devices and also smart glasses.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question comes from the line of Soman Mehta with Kotakmc. Please go ahead.
Atul Lall
Yeah, thanks for the opportunity. Just wanted to check, assuming there are more delays in the PN3 approval, what is the plan B? Do we continue to manufacture vivo outside of JV as a pure contract manufacturing and how should we look at that part of the business?
Saurabh Gupta
So we feel very confident. We are deeply involved in this process and when I’m sharing with you this information it’s with fairly high level of confidence. So just bear with us and wait for us some time. So for us we are not taking on a plan B because we feel confident the approval should come in.
Unidentified Participant
Okay. Okay. And in terms of the volumes, can you highlight how the December volumes for the for the current quarter was? And we see there is a sequential decline which are the brands where the decline, I’m not asking for a specific number but which are the brands where the decline is a bit sharper compared to the others.
Atul Lall
So as we mentioned, basically as Mr. Lal mentioned in his opening remarks, the back of memory prices has been largely intense on the low end and the low end phones and the mid end phones. So that’s where we are seeing some kind of demand impact.
Saurabh Gupta
So as we shared with you the last quarter numbers of 6.8 million but please appreciate for us to share that in which brands There was a decline is not a very fair. It will be difficult for us to share that. But you can overall number we have shared with you.
Unidentified Participant
Sure. And my last question, in your best estimate has there been any market share loss for some of the largest customer where we also have export given one more Indian partner has started manufacturing phones of that particular oem.
Atul Lall
Yeah. So one of our anchor customers has started manufacturing with another EMS company. But on overall volume basis our numbers have not come down as compared to the last fiscal. But as a part of their internal strategy volume certain percentage has been allocated to another ems.
Saurabh Gupta
Yes. Just to let you know, our numbers for that particular anchor customer that we’re talking about would show a growth this year on the last year numbers as well. So in the last two years the number has significantly grown for us.
Unidentified Participant
Perfect.
Atul Lall
From Indian market and we have an iron share of their business.
Unidentified Participant
Perfect. Thank you so much Saurabh and Mr. Lang and all the best for subsequent quarters.
operator
Thank you. The next question comes from the line of Chinmay Parab with an individual investor. Please go ahead. Chinmay, your line has been unmuted. Please go ahead with your question.
Unidentified Participant
Hello. Yeah, am I audible?
operator
Yes, please go ahead.
Unidentified Participant
Sorry I lost your opening commentary on the lighting sector. Can you just repeat that? So I’ll just read out the same. In lighting, Our joint venture with Signify that is Philips continues to deliver exceptional results and partnership is driving robust higher double digit revenue growth enabling better asset utilization and deepening localization levels. We have significantly enhanced our market share in LED bulbs battens downlighters through this partnership and positioning us firmly at the center of ongoing consolidation within the Indian lighting industry. We are seeing several smaller and subscale players in the lighting ecosystem struggle to keep pace with the required investments in technology quality and compliance which is creating a favorable comparative backdrop for a well capitalized integrated platform like ours.
We are moving up the value curve with an increasing focus on premium and technology LED lighting solutions which supports higher realizations and an improving margin profile. Over the medium term leveraging our manufacturing expertise, we see strong potential to export high quality LED lighting products to markets such as Europe, uk, UAE and us. We continue to focus and invest in automation to further boost operation excellence and keep investing in backward integration to improve our cost efficiencies. So this is what I read out.
Atul Lall
Yeah, thank you. Thank you so much for repeating that. Just on talks about the current market scenario with respect to the EU FD approval, what kind of opportunities do you see as a company, as a whole and also in the lighting sector? Would you like to add some points towards it? So we’re still waiting for the fine prints, but we feel that the tariffs on lighting and LED TVs are a potential area for us and we feel that they want to come down to practically zero and that’s an opportunity for us to capture the EU market.
Unidentified Participant
That’s great. Thank. Thank you so much. Thank you so much. All the best for your future. Thank you.
operator
The next question comes from the line of Girish with Morgan Stanley. Please go ahead. Hi sir, thanks for the opportunity.
Unidentified Participant
My question was just on capex. If you can just highlight for FY26 and FY27, how much is the budget? And secondly, I wanted to understand when you get the approval for Vivo jv, you would be having some kind of cash consideration being paid to acquire the manufacturing facilities. And what could that ballpark number be from a Capex standpoint that you would be investing?
Atul Lall
So first nine months the capex outgo is 720 crores. We feel that in the overall fiscal it should be somewhere between 1100, 1200 crores. It’s not prudent for me to share the number for Vivo acquisition. But please be rest assured the balance sheet has adequate strength to work on that acquisition. That number is confidential. We would not like to disclose that number of acquisition. Right now the capex is 700 crores. Last quarter, maybe another 300, 350 or 400 crores. So we will do a Capex of closer to 1100, 1151 crores.
Unidentified Participant
So my last question was on it and hardware product. So we saw one year extension being given by the government. Wanted to understand you have acquired these customers. How should one think about revenues for.
Atul Lall
This year and next year for IT and hardware products? So this year we feel the revenue should be in the range of 1500 odd crores. We have a decent order book for next year. The budgets are still being worked out. We feel that for next year the numbers are going to be somewhere around three and a half, 4,000 crores. Yeah, the order book looks, Greece looks very healthy every sutos. We will also freeze on those numbers in the next couple of months. But clearly the brands have indicated a very strong order book. So clearly. So that is also a growing vertical. For us with backward integration as well. Sure.
Unidentified Participant
And if I heard you correctly sir, you mentioned that you’ve hired a senior resource for industrial business. So what segments are we talking here? Is it autosom, is it other industrial products like smart meters? If you can just highlight like what is the kind of capability Building that is happening there.
Atul Lall
It’s going to be for automotive, it’s going to be for industrial electronics. We’re not looking at energy meters as of now.
operator
Okay, sir, thank you so much. Thank you. The next question comes in the line of Niren with BNP Paribas.
Unidentified Participant
Please go ahead. Yeah, thank you for the opportunity. Sir. My first question is on the hkc jv. Just some clarification. So PNC approval required for the commencement of the facility in case the PNC approval doesn’t come by the time there are facilities.
operator
I’m sorry to interrupt. Narensh, could you please use your handset?
Unidentified Participant
Hello. Is it better now?
operator
Yeah, far better. Could you please repeat your question?
Unidentified Participant
Yeah, sure. So sir, my first question is on the hkc JV just wanted to confirm whether the commencement of the facility that is under construction is contingent on the PN3 approval or will still go ahead with the commencement in case you don’t receive the PN3 approval by the time.
Atul Lall
No, it’s not contingent on the PN3 approval. The construction is on. In fact, the building has been handed over to us. The equipment has already landed at the port. So it’s not contingent. But for us it’s an important partnership and PN3’s approval is important for us. But is the business contingent to PN3? No.
Unidentified Participant
How will it work? In case we don’t receive the PNC approval by then, how can we still commence the production from the same plant?
Atul Lall
Yeah, we can. First is that PN3 for HKC will definitely come through. Second, we’re confident that the ECMS approval also for display will come through. Third, that God forbid, if it doesn’t come through, it does not have any impact on execution and starting the production in the plant. It will be 100% subsidiary.
Saurabh Gupta
So basically we have not held back on any Capex. And as you mentioned, the machineries have already been ordered. Some of them are at port, some of them are getting ordered. So there is absolutely no delay on account of not getting the pre approval till now, which we feel absolutely confident we’ll get. But otherwise it’s absolutely. The project is going on a novel the way it should be going.
Unidentified Participant
Sure sir, that’s helpful. And secondly, just wanted to check on the export orders for Ismartu. If I remember correctly, last year we had been saying that we expect like a 3 to 4 million of incremental export orders coming from Ismartu, particularly for the Africa markets. So where do we stand now? Like are we seeing those export orders getting executed this Year or next year, Year or like, is there any delay there?
Atul Lall
So some exports has already started. We would have done almost 1.2 to 1.5 million exports from Ismartu. The discussions are on and that’s what I was talking about of building a large footprint down south for building that capacity. So that’s where we are on ismart.
Unidentified Participant
Sure sir, that’s very helpful, thank you and all the rest of the. Thank you.
operator
The next question comes from the line of rahul agarwal with ikegai asset. Please go ahead.
Unidentified Participant
Hello. Very good evening Mr. Nalan. Sara. Just two questions. First your clarification on the. On the pass through bit. You said you know most of the memory pricing. I’m assuming that the INR depreciation here because there is some element of importance plus the metal inflation. All of this is a pass through purely because we are a B2B. But is there a time lag between here? Like typically how it works for ODM versus a brand. Is there a possibility of temporary margin up downturn and then finally get the price out? How does that work?
Atul Lall
No, no Rahul, it’s immediate pass on. So there is no impact. This is a prescriptive business for us. So in any prescriptive business the currency or commodity risk are immediately passed on. So there is no impact on our business.
Unidentified Participant
Okay, perfect. Second is of the launch year. You said it will commence sometime end of 1Q27. And since the approvals are now received and you will be signing you know, final documents. Just wanted to understand till that point the production for mobiles right now happening with them continues till that point. And then the existing business shifts to that JV and then that where we start growing. Is that understanding correct? Yeah, that’s.
Unidentified Participant
That’s the right understanding. So business continues AS is only Q2. It will move to the JV in the new plant with the. With the shareholding that we had agreed 7426.
Atul Lall
There is no, there’s no. You know when we. When basically shift to the jv there is no delay between that production, right?
Atul Lall
No, no, no. There will be no delay.
Unidentified Participant
Okay. And as of now launch here would be like any salience. Could you, could you share for the mobile business right now like how much business shifts from a. From a, you know, subsidiary business to the gv.
Atul Lall
So those numbers are being worked out. Rahul. We feel that in 27, 26, 27 it will be around 8, 10 to 10 million.
Unidentified Participant
Okay, got it sir. And last question was on capex you said 11 to 12 billion. Of capex. Just wanted to understand, I mean I, I know that components have lower, higher margins and similar IOCs, but if you could just break down between the camera module, display module and then the batteries, mechanicals, I think what kind of capex are we putting in each of these divisions? That will really help. Thank you.
Atul Lall
Yes, Display business across these four categories of smartphones, automotive, IT hardware and in the second phase also we’re looking at TVs as well. We will be putting a capex of closer to 1100, 1200 odd crores in QTech. The camera modules capex intensity should be closer to 250, 300 odd crores. Battery we have, we still have not worked out the numbers and we have not been, we don’t have a technology partner right now as far as batteries is concerned, so we have not worked on that numbers and SFP. And mechanical enclosure is going to be another 50 to 60 crores. And fiscal 27, is there a budget for any ballpark Number please? It’s still being worked out.
Unidentified Participant
Okay, perfect. Thank you so much and wish you. All the luck for the rest of the time. Thank you.
operator
The next question comes from the line of Kur Pandya with ICICF credential. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir. First question is on the mobile phones to mention too early to guide for FY27. Generally, whatever say rolling plan we get from our clients, do we have any visibility on at least Q1? I mean generally this supply chain takes time and so we have to. Is it fair to assume that at least in the first half we should see degrowth of volume? This is X of EvoJV. I’m just saying. I think we have to just. Or do we have pipeline to add clients?
Atul Lall
See, because the memory supply is not only a question of pricing, it’s also a huge question of availability. So the brands themselves do not have an absolute clarity that how those numbers are going to pan out. So I think we have to wait and watch for another 2, 3, 4 weeks to arrive at those kind of numbers.
Unidentified Participant
Understood. Second question on overall numbers. So I mean ballpark at the EBITDA level, pure, pure mobile itself would contribute probably more than 60% of the EBITDA. Now in this, in that backdrop where all the capex of expansion and new categories would come on stream either in QT or Q2 or Q3 of 27. And is it, I mean, should we assume that at least in the first half of FY27 we should be either flattish or de growth in terms of Say revenue or ebitda.
Atul Lall
No, we still have growth. We are still working on the numbers because there is some level of uncertainty. But we feel that there will be growth in spite of these challenges in.
Unidentified Participant
The first half of the year. Sure. Noted sir. Thanks a lot and all the best. Thank you.
operator
Thank you. Ladies and gentlemen. We will take this as the last question. It’s from the line of Nitin Kaushik with AFN Capital Private Limited. Please go ahead.
Unidentified Participant
Good evening sir. Sir, am I audible?
Atul Lall
Yes. Yes.
Unidentified Participant
Sir. My question was in a previous phone call you reiterated that the company is targeting over 1 lakh crore revenue in the next three to four years. So given this current increase in the price of memories and ram, would that guidance remain intact?
Atul Lall
See, we are still very optimistic. We are aggressive. We have got our plans in place. We’ve got our acquisition and JV partnerships in place. We have a new growth category triggers in front of us which we are committed to. So we are committed to an aggressive growth for Dixon. Please be. We feel confident about it. We feel committed to that.
Saurabh Gupta
And this also we have seen earlier also in Covid period the supply disruptions keep coming but that doesn’t change the overall outlook for the company. Overall growth plan for the company. This can have some short term challenges. But yeah, we are continuously working not only mobile phones, other verticals. We are just getting into the growth plan in order IT hardware, telecom business item business of course the largest figure for growth. But yeah, there are small supply chain disruptions which happen in business. But overall nothing changes as far as long term outlook is concerned.
Unidentified Participant
Also sir, the growth that you are riding. So I think majority of that would come from mobile phones and segment, right?
Atul Lall
Yes, mobile undoubtedly is a large segment. But as we shared with you we see a huge potential and upside in IT hardware for margin expansion and also adjacency. We see a huge upside in our component business in BHDs4.8 we see a huge upside in telecom equipment business. We are also expanding our appliances business. We are also expanding our lighting business. So all these are triggers for growth. We are getting into new categories of industrial EMs.
operator
Thank you sir. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.
Atul Lall
So thank you very much for participating in the earnings call. We really appreciate it and thanks for your commitment and conviction for Dixon. Really appreciate it. Thank you so much. Thank you. Thank you so much.
Tanay Shah
Thank you on behalf of DAM Capital. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.