Dixon Technologies India Ltd (NSE: DIXON) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Unidentified Speaker
Bhoomika Nair — Investor Relations, DAM Capital Advisors Limited
Atul Lall — Managing Director and Vice Chairman
Saurabh Gupta — Chief Financial Officer
Analysts:
Unidentified Participant
Aditya Bhartia — Analyst
Hitarth Kapadia — Analyst
Renu Baid — Analyst
Madhav — Analyst
Keyur Pandya — Analyst
Abhishek Ghosh — Analyst
Siddhartha Bera — Analyst
Indrajit Agarwal — Analyst
Bharat Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Dickson Technologies Limited Q4 and FY25 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. Conclude, should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Bhumika Nair from Tam Capital. Thank you. And over to you, ma’ am.
Bhoomika Nair — Investor Relations, DAM Capital Advisors Limited
Yeah. Good evening everyone and a warm welcome to the Q4FY25 earnings call of Dixon Technologies India Limited. We have the management today being represented by Mr. Atul Lal, Managing Director and Vice Chairman 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
Thank you, Bhumika. Good afternoon ladies and gentlemen. This is Atul Lal and we have on the call today our CFO Sourabh Gupta.
Saurabh Gupta — Chief Financial Officer
Good evening everybody.
Atul Lall — Managing Director and Vice Chairman
Thank you very much for joining the earning call for the quarter ended March 2025. Despite a dynamic and challenging macroeconomic environment, company has delivered another quarter of robust performance. Our diversified revenue streams have insulated us from segmental volatility. The key highlights for the quarter are as below. Consolidated revenues for the quarter ended March 31st, 2025 was 10,304 crores against 4,675 crores in the same period last year which is a growth of 120%. Consolidated EBITDA for the quarter was INR 454 crore against 199 crore in the same period last year which Is growth of 128%. Consolidated pad for the quarter was INR 401 crore as against 95 crores in the same period last year with a growth of 322%.
This includes fair value gain of INR 250 crores in the value of Dixon’s stake of 6.5% in Aditya Infotech Ltd. Excluding this gain, the adjusted PAD for The quarter was 185 crores which is a growth of 95%. Besides leveraging industry tailwinds, we are scaling up across all segments by taking higher share of customers wallet, new customer additions and driving margin expansion through operational efficiencies, value engineering and manufacturing excellence. The company’s strategy to deepen the level of manufacturing by Getting into components will further lead to margin expansion. With our unwavering commitment to financial prudence, we continue to demonstrate exceptional discipline in managing our working capital cycle which is stood at negative 5 days.
Healthy balance sheet with cash and cash equivalent balance of 264 crores and low gross debt to equity ratio of 0.07 as of 25-3-31. This near zero debt position along with adequate credit lines gives us significant financial resilience to fund our current and future growth requirements. Improvement of ROC to 48.5% and ROE up to 32.5% as on 31st March 25th which is well ahead of industrial benchmark, was driven by high asset turnover, operating leverage and optimized capital allocation, underlining the quality of our earnings, consistent focus on value attributed growth and a structured efficiency of our business model.
ROC and ROHI will always remain key guiding parameters in strategic investment decisions. We continue to invest in our capacities backward integration and diversify into new product categories to support long term growth opportunities with huge focus in quality manufacturing excellence and consistently meeting the needs of our principal customers and strengthen our position as a key player in the industry. VCE ECMS that’s electronics component manufacturing scheme scheme launched on 8th of April by the government of India as a strong enabler for backward integration, cost efficiency and low value long term value creation and are committed to leverage the scheme to enhance capabilities and contribute to India’s goal of becoming a global hub for electronic manufacturing.
We’ve already rolled out a project for display modules. We’re evaluating various other component categories like CAMGA modules, mechanical enclosures and lithium ion batteries and will be actively participating under the ecms. Now I will share with you the business performance and insights in each of the segments. Mobile Phones Revenue for the quarter for mobile business was 9102 crores. Growth of 194% year on year and operating profit of same 49 crores which is growth of 232% with an operating margin of 3.8%. Out of this, revenue for telecoms, hearables and wearables were INR 1 to 88 crores and INR 196 crores respectively.
Our collaborations with leading global smartphone brand have grown deeper reinforcing our standing as a reliable and respected partner in mobile manufacturers. We’re expanding capacity by 50% from our current levels for our anchor customer to meet their increased order book. A large part of it will be on account of exports to North America. In light of the evolving geopolitical scenario, we expect a strong growth in the volume for longchair and order books for Xiaomi looks decent for compile. The volumes are expected to increase for large US brand potential opportunities for exports. Ismartu is having a strong order book from the brands like itel, Infinix and Techno and also nothing with export order book to African markets where transient groups are leaders with almost 80% market share and also increasing focus on deepening the level of manufacturing by getting into components in the JV with them.
We have started manufacturing for a new partner NXT Cell to manufacture a smartphone for French brand Alcatel and have a decent order book. We are in the process of filing our PN3 application for FDA approvals for our JV with vivo and simultaneously working on closing the definitive agreements. Construction is underway for the display module facilities in partnership with HKC focusing on mobile phones and IT hardware products in the first phase with mass production expected to commence by end of this fiscal with capacity of 2 million displays per month which will be further enhanced to 4 million displays and also we will have the capacity of 2 million laptop displays in this phase.
We are constructing a new factory of almost 1 million square feet in Noida for our mobile manufacturing with announcement of component pli. We are now in active discussions with our prospective technology partners for camera modules, lithium ion batteries and flow rates Consumer electronics which comprises of LED TVs and refrigerators. Revenue for the quarter was INR 689 crores with an operating profit and margin of 42 crores and 6.1% respectively. Out of this the revenue for refrigerator business was 197 crores. Segment margins expanded 270 points primarily driven by strong profitability in our refrigerator operations on account of of ramp up and stabilization of operations leading to normalized margins.
LED TVs the global TV industry is witnessing subdued demand primarily due to structural challenges and a significant shift in consumer preference. We are increasingly offering customized solutions to our customers and are now working closely with Amazon, Fire TV Solutions and LG for WebOS which is expected to be rolled out by Q1 of current fiscal in addition to interactive flat panel display TV, we have now started manufacturing digital signage solutions from 65 to 100 inches and have a decent order book. Further, we plan to invest in CKD and set up a robotic panel assembly line for these product categories.
We’re also in discussion for partnerships for manufacturing for industrial institution and automotive displays and exploring opportunities in both B2B and institutional sales refrigerators. Within the first year of operation we have been able to capture around 8% of the Indian market and 48% of OEM addressable market in the Direct Cool category we’ve onboarded more than 15 customers in a year in direct Cool category owing to the trust shown in us by our brands for our execution and quality. We’re also expanding our capacity in direct cool categories to 2 million per annum from 1.2 million per annum along with flowing into the new products in the cooling division like two door frost free side by side minibars, deep freezers and dilly coolers.
Order book for 2526 looks very healthy and we expect a growth of 50% in the current fiscal year. Home appliances revenue for the quarter was 302 crores, operating profit was 37 crore, a growth of 23% year on year with an operating margin of 12.2%. Margin expansion was mainly supported by scale driven efficiencies, value engineering, cost optimization, focus on innovation and value added offerings to our customers. We are further expanding our manufacturing capacity in Adhrupati plant in order to meet the increased order book for our clients in the coming fiscal we’ll also be launching semi automatic washing machine in 16 and 18 kg capacity category which will be the first across the industry.
We have already started working on the front load washing machine robotic vacuum cleaners and initiated many new designs to our oleum solutions in both the category which are expected to be launched by Q2 of 2526 lighting revenue for the quarter was 200 crores with an operating profit of 15 crores with a margin of 7.3%. Our 5050 JV with Signify is expected to commence operations from Q2 of the current fiscal following the signing of definite agreements which are anticipated to close by end of May 2025. The JV is expected to generate operating leverage through synergies expanding into new categories including high end door lighting products, professional lighting along with unlocking export opportunities.
During the quarter we operationalized our backward integration facilities for extrusions used in batons which is expected to enhance cost efficiency and contribute to margin improvement. Telecom and networking products revenue in this segment for the quarter was 1288 crores which is almost 5x growth year on year along with superior operating margins and robust balance sheet. Our new noida facility in Q3 of this fiscal is now operating on optimal level to meet the increased order book for our anchor customer. Leveraging the rapidly increasing home broadband penetration in India, we have doubled the capacity of 5G fixed wireless access devices to cater to the demand of our anchor customer.
Our first model of IPTU boxes has ramped up. Another model will kick in Q2 of this current fiscal for our anchor customer. In line with our strategy of backward integration, we have localized certain components like crafting, molding, adapters and working on localized more components like mechanical scale, connectors etc. With a solid order book for our aggregators customer export prospects through a large odm, this vertical is set to play a pivotal role in Dixon’s growth. We’re now deeply exploring to manufacture non customer premise equipment and low volume high mix products like radio access networks, ethernet switches, network transport equipment, laptops and tablets I.e.
iT hardware products. Our dedicated IT hardware products manufacturing unit in Chennai has completed the pilot run and mass production has already commenced and will significantly ramp up in coming months for both HP and ASUS. Production for Lenovo has ramped up to almost 30,000 units per month with healthy order book for the coming period we’re entering into 6040JV with the Mentech Corporation is one of the world’s top five IT products ODM for manufacturing of notebooks, PC products, servers, desktop PC including its components like ssd, memory, power supply in India and in process of finalizing the manufacturing facility in Chennai adjacent to our current facility, we are also exploring opportunities for localizing mechanical enclosures for IT hardware under ECMS variables and heritables.
Revenue for the segment was 196 crore for the quarter with healthy operating margin and extremely good roce, we have a strong order book in this business. We are in discussion to expand product portfolio with addition of new brands with focus also on backward integration and localization. Rexam Dixim Electronic with JV with Rexam achieved revenues of 121 crores in the quarter with healthy margin superior ROSI. We have finalized a new manufacturing location in Chennai, Tamil Nadu for meeting the increased order book for our ranker customer. I would like to stop here and I and Sourabh are there for you to address any questions that you may ask.
Thank you.
Questions and Answers:
operator
Thank you very much Sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have a first question from the line of Aditya Bhartia from Investec. Please go ahead.
Aditya Bhartia
Hi, good evening sir. So my first question is on the mobile phone side. Just wanted to understand how we thinking about the ramp up in volumes from. Here on and like this particular quarter. Was more like a flattish quarter. So from here on a sequential basis of course. So from here on how should one think about volumes ramping up? And my second question is on the. Consumer electronics business wherein the PV revenues appear to have fallen quite sharply and. It’S been fourth or fifth consecutive quarter that that’s happening. Just wanted to understand how much of. This is overall market phenomena and how. Much of this could be on account of maybe some market share loss.
Atul Lall
So Arita, the responding to first part of your question. The smartphone order book from the current quarter is looking very healthy from our anchor customer. The order book is very, very good because we have really ramped up our exports to North America. The order book from both Xiaomi and also Longcare has increased significantly from the current quarter. Also the numbers of ismartu wherein we do for itel, Techno, Infinix and also nothing looks very good. So the order book is very, very healthy from in the current quarter. The combined volume would be somewhere in the range of around 3.3 to 3.5 million per month.
Aditya Bhartia
Volume that you mentioned sir. 3.3 to 3.5million per month. This is the volume that we did in fourth quarter for smartphones.
Saurabh Gupta
No, no, no, no. This is the current quarter monthly. Audible.
Aditya Bhartia
Okay, understood, understood. Okay, understood.
Atul Lall
Yeah. Responding to your second part of the question. Yeah. TV is under pressure. There is an overall decline. There is an structural issue with the category as such. And also we have lost a bit of the market share. So that business is under pressure that I humbly accept.
Aditya Bhartia
And so do we have the flexibility. Of maybe lowering the margins a bit. And trying to regain market share? Or is it a scenario that customers. Want to be little more broad based in terms of their vendors and therefore. Are deliberately looking for an alternative?
Atul Lall
So we are working on various fronts. Aditya1 is expanding the product portfolio. So we have already started the ifpd. We are looking at digital signages and also educational tv. We have gone in for more backward integration. We have optimized our cost structures. We are migrating more and more to ODM where the margin profile is better. We are launching new operating systems. So we are on Amazon Fire TV which will be launched shortly and also LG WebOS. Slightly premature. We are also looking at some large strategic relationships in the business. Please give us some time. I’m fairly confident that it’s going to materialize but various actions are being taken to bring this business back on track.
Aditya Bhartia
Perfect sir, that’s great. To hear. Thank you so much.
Atul Lall
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the conference, please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. I repeat ladies and gentlemen, please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. We have our next question from the line of Ankit from HDFC Live. Please go ahead.
Unidentified Participant
Yeah, hi sir, it’s Ankur. Thank you as always for your time. So my first question again on the. Cell phone side, you know, and more. So on upcoming competition, you know, in the cell phone business. Also the context of our pli, actually. Not just for us, everybody kind of. Going away in FY26. Just help us understand, you know, how. You seeing competition coming up here, you. Know, how do we retain and more. So continue growing the way we have. You know, on the cell phone side.
Atul Lall
So Ankur, you see we have a large share of the outsourcing opportunity mobile business. And just looking at the numbers, the total market of 150 odd billion. Out of that 150 odd million, the Android space is around 135, 140 million. Various brands are manufacturing in house and outsourcing opportunity is around 90 million. And including our new tire Core Vivo, we are targeting for around 60, 65 million by next year. That’s the number we are talking about. Now questions that you have raised are very pertinent. The first point is that how do we respond to the competition? And second, the PLI is getting over in 25, 26, that’s this is the last year.
So on the first part please appreciate we have deep strategic relationships. So our largest customer, Motorola, it has really done well and now we have a large export opportunity with them. This relationship is very deeply entrenched and for anybody to be very candid to catch up is not an easy task at all. The second is our large relationship with transient and that’s our jv. And the third, so that means all the brands like Infinix, Itel, Vivo, Itel and Techno are with us and nothing is with us. Similarly, our forthcoming JV with Vivo is a strategic relationship wherein as per the binding term sheet, a very large percentage has to happen in jv, only Allen’s, of course the market is open, but we have to deliver.
So the competition will be on deliverables. But we strongly feel that we have the first mover advantage in this business. We also have a large scale with an operating leverage. And also we’ll have the first mover advantage of backwardly integrating into components wherein we will generate fairly good blended margin to control this market. And also the backward integration play, plus the operating leverage generated through the large scale and also significant investment in automation and enhancing the operational efficiency. We feel that we should be ahead of our competition, but we respect competition and we are paranoid about competition.
So we have to be on our toes. But I am sharing with you very transparently and candidly the direction and the work that we are doing internally.
Unidentified Participant
That’s very helpful. And so just on vivo, are we. Broadly on track to commence production by Q2? I think Q2 was what we probably. Mentioned earlier
Atul Lall
in our budget year. We have taken some, some part of it in Q4.
Unidentified Participant
Okay, okay. And just last one, if you could, you could share the volume numbers for. The full year for our segments the way we share them every time. Yeah, that’s all. Thank you so much.
Atul Lall
So our smartphone numbers was 28 billion last year. 28 point, 28.3 million. And in 2324 it was 6.4 million. So it’s a growth of 338%.
Unidentified Participant
Sure. Similar numbers for other segments as well. TV and lighting as well. And appliances.
Atul Lall
TV there’s a decline from 3 million to 2.4 million. In LED bulbs there is a growth. And in other lighting products also there is a significant volume growth in washing machines. In semi automatic it’s flattish. But in fully automatic top loading there’s an 81% growth from 1.6 to 2.9 billion. In feature phone as a category declining and due order had come to an end. So there is a decline in TWS and all, there is a significant growth of almost 47% from 16 million to 23.7 billion. And similarly in both hairables business it’s grown from 10 million to 13 million 36% growth.
In set top boxes, there is a growth from 2 million to 4 million. In telecom products, there is a growth from 3.5 million to 7 million. In refrigerators, of course, it was our first year so we logged a volume of 8.6 lakhs, which is almost 8% of the Indian market and 40% of the outsourcing opportunity. So I think volume numbers largely except for TVs have been very good for us.
Unidentified Participant
Got that? Great. Okay. Sir, thank you so much.
Unidentified Participant
Thank you.
operator
Thank you. We have our next question from the line of Hitarth Kapadia from Valuequest Investment. Please go ahead.
Hitarth Kapadia
Yeah, can you hear Me, Am I audible?
Atul Lall
Yeah.
Hitarth Kapadia
So first question is on this minority interest of 64 crores that has come in this quarter, which business is driving this and how will this move going forward? Because there’s a significant increase.
Atul Lall
Yes, a minority interest is coming on account of our Californics business, which is basically the variables business which we have at boat. It’s also an account of the telecom business where we have a 49% shareholders. Shareholder. Shareholder as ATIL. And so these are the two, two businesses where we have a minority today. And even the Ismartu business whereby the 49.9% shareholding of our ISMARTU entity is.
So we have a 50.1% shareholding there.
Hitarth Kapadia
Okay. And second question on the components business, what will be the economics of it, say payback period? ROC is asset terms working capital.
Atul Lall
So each category is different. Display modules is different. Sourabh can share with you separately the financial metrics of that for camera modules, enclosures and lithium ion batteries. The teams are working upon it so it’s slightly premature to share those numbers but we feel and we have that confidence that once we get into it our blended margins should significantly improve.
Hitarth Kapadia
Okay, thank you. That’s it from my Sir, I’ll connect with you separately. Sure.
operator
Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow up question, we request you to rejoin the queue. We have our next question from the line of Renu bed from IIFL Capital Services. Please go ahead.
Renu Baid
Yeah. Hi, good evening team. So for my first question is on ISMAA2 we had a minimum assured pat offtake for this year. So have they delivered on the 2 billion plus number? Where are they? If you can share some input there on the financial matrices for SmartU. Second also on the mobile phones you did mention 60, 65 million units targeted. This is for fiscal 27, right? And for fiscal 26 what kind of volume numbers are we targeting overall for the year? Given certain JVs are expected to start contributing to numbers towards the mid of the year.
Saurabh Gupta
So Renu responding to first part of the question, ismart was delivered on the committed pat in this fiscal as per our agreement on the second part of the question, yes, we are building a capacity of almost 60, 65 million and that’s the targeted volume that we are aspiring for in 2627. Our 2526 volume number for a smartphone. Is around 45 million depending on I think it should be closer to 40 to 43 million. 43, 44 million right now.
Renu Baid
Got it. And the payout to Smart2 you will happen on now in fiscal 26 or what are the timelines there?
Saurabh Gupta
Sorry,
Renu Baid
There was a payout which was due to. Is part two on achievement of.
Saurabh Gupta
Basically we have agreed for the next three years based on the achievement of committed. Based on the achievement of their committed pact to us. I think so, yes, there will be further payouts for the next couple of years.
Renu Baid
Got it, got it. Thanks much and thank you.
Atul Lall
Thank you.
operator
Thank you. We have our next question from the line of Madhav from Fidelity. Please go ahead.
Madhav
Yeah, hi, good evening. Thank you so much for your time. My question again on the smartphone business, you know, once the PLI program ends at the end of FY26, just wanted to understand that, you know, it’s a, let’s say a 3, 4% margin business where there was about 4 to 5% incentive from the government, which obviously we retained some of it, passed some of it to our customers as well. But once it sort of goes away next year, just want to understand, I mean, and we already are a large market share, like you said, in the outsourced portion, if you look at 60, 65 out of 90, do you see any chances of either market share pressure for us into FY27 or any price pressure to retain the volume? You know, in case some competitors get a bit more aggressive, we may have to give some price discount to customers to retain the business.
Do you anticipate either of these happening into FY27?
Saurabh Gupta
You see, extremely important is that we in Dixon have to really enhance our operational efficiency much ahead of our peers and also deliver on our foray into components. Now, with the kind of volume and the relationship that we have, definitely we will be generating an operating leverage. Please appreciate the PLI contribution to our margin is around 0.6, 0.7%. We feel that the initiatives that we are taking on automation, increasing our efficiency a large scale and also our foray into the components under ecms, the benefits and gains for us are going to be much, much more.
There can be some time lag here and there, but on an overall basis, I think we’re sitting on a much more healthier and comfortable position. Post PLI.
Madhav
You think the PLI contributed 0.6, 0.7% to our mobile phone margin business or the EMS division?
Saurabh Gupta
0.6% of our margin is our share of PLI income, which has been booked.
Madhav
So basically, if we had 4 to 5% of sale coming as PLI incentive, which means the balance was getting passed on to the customer, right? I mean if we were retaining 0.6 balance, 3.4 was being passed on, is that right?
Saurabh Gupta
Yeah.
Madhav
So that’s what the crux of my question was that if you were passing on let’s say 3,4% in a 3,4% margin business to the customer now that that incentive is not there next year obviously can competition come in? That’s what my question was that because there’ll be a 3% price advantage
Saurabh Gupta
other than there’s no PLI for anybody.
No after. After the gap of one year.
Madhav
That’s exactly my point actually.
Saurabh Gupta
However, as a large scale better operational efficiency was able to offer them at a lower cost structure because. And that can only happen once you are more backwardly integrated once you have a large scale, once you are more focused on driving operation efficiencies, once you have one who has a better management team, better balance sheet I think so we will be able to drive a larger share of the also please appreciate.
Atul Lall
This is the reason very deeply we have been engaging with the customers to forge a strategic relationship is our brand. Our brand is saying that this is strategic relationship through jv. Same is the case with Vivo and Motorola relationship is almost a similar level.
Madhav
Yeah, fair enough. Got it. Yep. Thank you.
operator
Thank you. We have our next question from the line of KUR from ICICI Prudential Life Insurance. Please go ahead.
Keyur Pandya
Thank you. Hi team for great performance. So just question, first question on the IT hardware slash laptop side this Inventech JV and even otherwise with our mous what kind of say volume, profitability and revenue we should assume say over next two years both FY basically how what would be the ramp up path over next two years including FY26 that is first question
Saurabh Gupta
in Ventech JP we have 60% and in Ventec has 40% Invect is one of the top one of the top five ODMs in the IT sector. They have large relationships with brands like HP and ASUS and they also have a large presence in the server market.
So we feel that this JV should become operational in Q4 of the current fiscal. There’s a factory being set up adjacent to our campus in Chennai. Initially this will be focused on PCBA because we will be leveraging the IT PLI 2 also and they’re going to be bringing in here the large relationships into this JV and also they’ll be facilitating our entry into the component side to further leverage it PLI2 because if you see the structure of it PLI2 the incentives keeps expanding as you keep on localizing more. Now the revenues we feel in the year two can be somewhere in the range of around 2000 odd crores.
But the opportunity for this is immense because they bring in a lot of strength and lot of deep relationships. Rough technology, the high value added products like servers to our relationship. So just one follow up. So the left basically our IT hardware segment revenue. You mean would be 2000 crore in FY27. Is that a correct understanding? See there are two parts to it. One is Dixon’s own factory in. In. In under the ITPLA. Two and that’s a separate revenue and then we are talking about the revenue in the jv. So yeah, these are two separate entities in the jv.
There’ll be two parts to it. One is the final product being built. It is going to be built to the end customer directly. And the second is going to be PCB and components being done in JV and being built to Dixon IT PLI unit. So there are two separate revenue streams. A part of IT is going to be subsumed in Dixon and Balance is going to be an independent revenue. We feel that in a couple of years we should be generating almost 4000 odd crores of revenues in both the entities.
Keyur Pandya
Okay, understood. And second question on the timeline for our component GV for display modules.
So when should we expect commercialization and significant billing or contribution to the revenue EBITDA?
Atul Lall
We feel that factory should be ready by Q3 of the current fiscal. That is an October or December quarter Trial should start sometime in January to March and the actual revenue generation should happen from 2627.
Keyur Pandya
Okay, noted. Thank you. All the best. We’ll get back in the queue.
operator
Thank you. We have our next question from line of Vipro Shivasa from Philip Capital. Please go ahead.
Unidentified Participant
Hi sir, I’m audible. All right, so first is on the laptop side. So what kind of revenue you are expecting based on your budgeting for FY26 for the facility coming up in Chennai for laptops.
Atul Lall
So we are expecting somewhere between 1200 to 1500 in the current.
Unidentified Participant
Okay, okay. So that’s noted sir. And sir, secondly, the kind of volume. Growth you have given which is around 40, 43 million. By any chance will it be possible to tell how much would be coming from Motorola out of this on volume.
Atul Lall
Terms we don’t want to share any brand wise. But all the three just for your numbers, all the four brands largely. So Motorola of course will be a large growth and even the there’ll be growth in Xiaomi Longchair which is Oppo and Duality and also for our for Tanchian brand and also the large global US brand as well through our partnership with Compal. So all the five would grow, right?
Unidentified Participant
Right sir. And the lastly on the component plis. So obviously the government has given a. Window of four months to apply for this. So what’s the status from the JV partner for camera modules? I mean any thoughts on that and what’s the status there?
Atul Lall
Timeline given is 90 days and we are working on it.
Unidentified Participant
Sure, sure. Thank you. Thanks a lot.
operator
Thank you. We have our next question from the line of Anupam Goswami from SUD Live. Please go ahead.
Unidentified Participant
Hi sir, first question is on the. Camera and module that we are talking about. You said about component Q3 Fi 26 trial should start. Is it going to be camera and display module both and if what is. The bill of material are we looking. In this overall and what kind of volume should we start with? We have a relation with all the brands, how the process takes place and expand overall. That is also.
Atul Lall
So what we refer to and what we stated was that in phase one we are looking at display module for mobile and the capacity being set up is 2 million and the teams are now working and trying to get engaged with the prospective customers which are largely captive for getting the solutions approved so that we can start supplying to them. So here what we refer to was display module for mobile and in phase two this is going to be double to 4 million and parallel.
In phase one we are setting up a display module line for laptops. That’s the thing for camera modules. I’m not able to share with you any details as such.
Unidentified Participant
Okay sir. And sir, 2 million is in 2 million units display and, and how do we serve this process? If you can explain how the customer engage, what’s the timeline and when can. We ramp up to our, let’s say mobile volumes? Should we in the long run see both in tandem?
Saurabh Gupta
Sorry, I didn’t get to the last part of your question. Please.
Unidentified Participant
In the long run, what sort of volume should we see how we have ramped up the mobile. Should we expect similar line of growth in that. In the module display?
Saurabh Gupta
See first of responding to first part of your question. When mobile, when a smartphone is designed, that’s where the camera module, sorry the display module is finalized and aligned with the design at the POC stage. So it’s a six to eight month cycle for development of those solutions. And that’s where the company and the team that started working upon. And as I told you initially it’s 2 million.
See we are targeting 43, 44 billion which we plan to take it up to 60, 65 million. So we feel that large part of what we produce first 2 million that is 24 million and then 48 million to be captive a part of it might be sold outside. That’s the plan.
Unidentified Participant
Okay, thanks. Thank you sir. I’ll turn back in the Q.
operator
Thank you. We have our next question from the line of Abhishek Ghosh from DSP Mutual fund. Please go ahead.
Abhishek Ghosh
Hi sir. Thanks for the opportunity. Sir, in terms of the mobile landscape you spoke about 13.5 crore Android phones market and about 9 crores is something which is outsourced. So for the residual four, four and a half is that likely to be in house only or is there a at which that can also be outsourced? Is that something which should be looked at from a three to five year perspective? Any thoughts on that sir?
Atul Lall
So Abhishek, basically there are three brands which are doing in house. It is Samsung, Samsung, we already have a large relationship wherein we are doing equity over there.
So let’s say if Samsung does around 40 odd million we are doing 12 million in house but it’s a different relationship and that I’m not counting in this number. Then it’s Oppo. So with Oppo we already have a large relationship and I hope that that will keep on enhancing and deepening. And third is Vivo. So Vivo, we have already finalized a strategic relationship. So these are the things. So I don’t think Samsung is an outsourcing opportunity. I don’t think so. Okay, expanding. Yeah. So essentially sir, you are saying you will go up to X of exports, you will do something like five, five and a half out of the total nine crore opportunity.
That’s the way to look at it in India. So see what we feel is that in the current year we’re targeting to do 44 million. So out of this 44 million I feel almost 10 to 12 million is going to be exports. Because for our anchor customers the order book for exports from North America is extremely heavy. And also for transient brands where we started exporting to Africa. Please appreciate in Africa share in many markets they have a share of as high as 80%. So we already started exporting. We feel in the current year we should do almost 2 million exports.
So I feel on an overall basis almost 10 to 12 million is going to be exports for us which we are very deeply working that these quantities should expand significantly. 26, 27 because that is what we want to crack and that our cost comparativeness is globally comparable. So that the global market now after acquiring a very large share of domestic market, we are attempting to get into. That’s what we are aspiring.
Abhishek Ghosh
Okay, so sir, in the 6 to 6.5 crore range that you have given export is something not explicitly built in to the extent you would have wanted? I’m saying if that comes in, is there an upside to that number of 6, 6.5 crores if export kind works out the way you are expecting it to?
Atul Lall
Yeah, Abhishek, that can be an upside.
You see, able to crack it, then it can be a big upside.
Abhishek Ghosh
So not in 27, but at least in 28 you will have growth coming in from the exports. That’s the way one
Atul Lall
see that is the trajectory for Dixon’s growth.
Abhishek Ghosh
No, sure, sure. Okay. So thank you so much. And Michelle, all the best. Thank you. Thank you.
operator
Thank you. We have our next question from the line of Siddharth Bera from Nomura. Please go ahead.
Siddhartha Bera
Yes, thanks for the opportunity. On this new deal with Alcatel. Do you have some targets in mind about how much are they also looking to sort of produce for the next couple of years?
Atul Lall
Well, we have just started the relationship. I think let’s give it some time. I think it will not be fair for me to put in the number there. Yeah, in the current month.
Siddhartha Bera
Okay, okay. And secondly sir, on this profitability on your consumer electronics and home plan segment for the quarter because some of these improvements that you talked about are sort of continuous process. So will it be fair to to assume that part of it will sort of sustain going ahead and at an annual level also you would want to target some of these numbers or there is some one off which we should normalize going ahead.
Saurabh Gupta
So basically Siddharth, as far as the refrigerator business is concerned, so clearly we have a very strong order book and we’re further expanding our capacity from 1.2 million to 2 million.
And we’re getting into other categories which was mentioned by sir in his opening remarks. And we are expecting a 50% growth in that category. And please understand that’s a 100% ODM business for us. The margin profile will be around somewhere closer to 9.5, 10 and a half kind of a range. So clearly that order book, that growth, that margin profile is clearly sustainable. Now TV as you mentioned, yes, there are challenges, but we are trying to get into new categories, trying to do more odm. We have really worked on the cost optimization here, cost controls here, but let’s see how the TV industry pans out, but broadly, as far as replica is concerned, you should take it as a broadly sustainable.
In fact that should be a growing vertical for us in this, in this segment.
Siddhartha Bera
And sir, what about the home appliance segment?
Saurabh Gupta
Home appliances also? Yeah, we continue to do well as well as the fully automatic top loaders is concerned. The numbers are now, we are doing the steady state of decent volumes every month and of course the margin expansion has happened on account of more value added offerings, innovation and as well as the value engineering efforts. And we mentioned that we will now get into other categories as fully automatically front loaders as well. Robotic vacuum cleaners.
Now all of that will be done at the same facility. So that should also lead to more utilization of that capacity infrastructure. So margin profile as well as the revenue growth wise, it should be sustainable. In fact there should be also growth in that category in this year.
Siddhartha Bera
Got it sir, very helpful. So lastly, sorry to interrupt.
operator
Mr. Siddharth may please request you to rejoin the queue. Thank you, thank you so much. We have our next question from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead.
Unidentified Participant
Yeah, good evening sir. Thank you for the opportunity. So first is on mobile. You know, I just wanted to check what’s our yield in mobile segment, you know, in terms of the recovery rate or rejection rate, if you could highlight and how does it stack up versus globally or Chinese players.
Atul Lall
Recovery rate, meaning you’re talking about the in process rejection or.
Unidentified Participant
Yeah, in process rejection, sir.
Atul Lall
So the in process rejection across different brands is slightly different. I don’t want to give the specific numbers pertaining to brands but it’s got between 0 2.3% to 0.5.6 broadly to. Answer your question, it’s at a global level. It’s at a global level. So some of the best companies which are manufacturing mobiles today, we are broadly at a similar level and we have the same infrastructure, we have the same machineries, the same throughput of those machineries and so clearly we are probably at the same level.
Unidentified Participant
Understood. And the second question I had with respect to the PLI, if you could help us understand, you know, for FY25, what is the gross and the net number and how much does it pertain to the mobile segment? And I remember we had certain claim with respect to the unclaimed pli.
Any update on the same as well, sir? Thank you.
Atul Lall
Yeah. So as sir mentioned sometime back that whatever mobile revenues we have around 0.6 percentage of those mobile revenues is the PLI. Share of income, which is our share of income which has been booked into this profitability so broadly you can calculate those numbers overall. Yes. As far as the status is concerned, mobile we have got our PLI till December 2024 and January to March 25. So we have got our PLI till December 2023. January to March 24 is expected to come anytime and then we will file a claim.
We already filed a claim for part of this financial current financial year as well and the government will take that claim as well. As far as other PLIs are concerned, which is on telecom side, lighting side as well as AC inverter control board, we have got a claim till last financial year and we have now filed a claim for the current financial year, the 2425 as well. Because it’s. It’s mostly done on the achievement of the revenues at the year end level and the IT hardware we have just started. So we have done the capex and as and when the revenues come into the system we will file our claims for IT hardware revenues as well.
Unidentified Participant
Understood? Understood. That’s great sir. I will fall back in the queue for follow up. Thank you.
operator
Thank you. We have our next question from the line of Indrajit Agarwal from clsa. Please go ahead.
Indrajit Agarwal
Hi sir, thank you for the opportunity. One question on the realization for mobile phones as we ramp up our volumes from 28 to 42 and then let’s say to 60 plus. Given the brand mix that you see, do you think there is a scope for realizations rising as well or those remain broadly stable?
Atul Lall
Yeah, we feel confident that the realization would keep going up on account of the mix change. If you look at this, some of the brand, the large US global brand that we have, the realization is much, much higher than the realization that we have across the other three large brands. And even as you get into the export markets there also the realization of the smartphones is much higher.
Saurabh Gupta
So clearly the whole market and demand is migrating from 4G to 5G whereas the unit value is significantly higher. So unit sales realization will increase.
Atul Lall
In fact it has been going up in the last couple of years. It will further go up in code facility 6.
Indrajit Agarwal
Sure. And my second question is on the new business. Let’s on industrial EMS. Any update on that? Where are we? What kind of, you know, targets that you have over the next three to five years?
Atul Lall
So industrial EMAs are first. Hopefully venture is going to be on the charger. We are tied up with a startup for charging stations in our Tirupati plant. We are Targeting to start production for this particular venture. That’s the first opportunity that we are pursuing.
Indrajit Agarwal
All right, thank you. That’s all from my side.
operator
Thank you. We have our next question from the line of Girish from Morgan Stanley. Please go ahead.
Unidentified Participant
Yes sir. Thanks for the opportunity. Sorry I joined bit late if I missed this. Historically you spoken about, you know over. 150 basis point of margin expansion courtesy the component PLI that you’re doing on a blended basis, does that number still hold or given the reassessment is that number raised up or down? And the second one I wanted to Understand is the CapEx that you expect to incur for FY26 and 27 given the large customer onboarding and volumes that you expect across verticals like mobile and IT and telecom. Thanks.
Atul Lall
Yes. To answer your second question, Greece, the capex intensity, the 2425 we did a capex of almost 900 odd crores and my sense is. 242526 the capex should be in a similar range of around 900 to 1000 crores which we have adequate cash flows and credit lines to support. On the first part of your question, yes there is going to be a significant the margin profile for the component business is significantly higher. I don’t want to share the specific numbers at this stage but let me assure the house that the margin profile of the component business is significantly higher.
Saurabh Gupta
And also our own internal efforts on efficiency or more automation. Yeah. So that should lead to margin expansion and also the operating leverage and also higher contribution of our ODM business like refrigerators and also telecom business. Of course telecom is not an ODM business but that’s also we have an order book and we have decent margins there. So combination of all that put together and but large part of that will be driven through this backward integration strategy. There’s four components that we have narrowed down. We’ve already done our numbers for camera modules and displays and other two we are of course we’ll be doing our numbers but broadly all the components generally comes at a very good margin profile and that should lead to a significant margin expansion at a company level.
And sorry if I missed this again. On display Fab, where is the discussion with the government on ISM 2.0 and as far as our partnership is concerned or our thought process on that capex is concerned. Is there an update on that please? Thanks. So we are awaiting the ISM2 to be rolled out. We are not very sure of the timeline for that. So that’s where it is. We’re waiting for ISM2. Because that particular foray is hinging upon the rollout of ISM2 and what that policy framework is going to be like.
Unidentified Participant
Sure. Thanks. All the best. Thank you.
operator
Thank you. We have our next question from the line of Bharat Shah from Ask Investment Managers. Please go ahead.
Bharat Shah
Yeah. Hi Tulji, good evening. Just one question. These Vivo relationship, the joint venture we. It is in books for almost five, six months now. Is it? Why is it getting delayed? So far.
Atul Lall
You see we already signed a binding term sheet with them. The teams are working upon the definitive agreement and very shortly we will be filing our applications for PM3 waiver. Now this PM3 waiver in the government, it is a long process. It involves a huge interministrial effort. So what we have targeted is that these approvals would come sometime in next five to six months and we have taken some small portion in our current fiscal budget for the last quarter of January to March. Out of 65 million that we are talking about.
Saurabh Gupta
No, no, here I’m talking about the current fiscal plan of 43, 44 million.
Bharat Shah
No, no, I understand. But out of. Sorry. What is the Vivo output expected to be?
Atul Lall
So vivo output circle fully will come in 2627. Yeah. And that can be broadly anywhere.
Saurabh Gupta
I think it’s about 15 to 16 billion.
Bharat Shah
No, sorry Atulji, I didn’t get that. How much is Vivo at a full level expected output to be.
Atul Lall
Total output of there is around 28 to 30 billion as per our term sheet, 67% has to be done in JV. So we are expecting around 18 to 20 million to come in the JV.
Bharat Shah
And that more or less fully should come in in 2627.
Atul Lall
That’s what
Bharat Shah
and a part of it in the last quarter of the correct year.
Atul Lall
That’s right.
Bharat Shah
But per se that is on track. Right, but for the procedures and all that, that’s okay.
Atul Lall
That’s right.
Bharat Shah
Subject to the approval, sir.
Atul Lall
Yeah.
Bharat Shah
Okay. And one last thing, Saurabh, you said the margin on the mobile phones 0.6 odd percent addition due to PLI, assuming the PLI scheme does indeed gets vacated, our effort to mitigate that margin impact, partly due to operating leverage, partly due to other efficiencies and all the other cost initiatives that we are taking so purely on mobile phone, that impact of the PLI margin of 0.6% for the year in entirety of 26, 27 we should be able to mitigate.
Atul Lall
Yes, we are quite confident.
Saurabh Gupta
We have confidence that. And it will be largely driven by backward integration and Also the efforts on the efficiency, the automation and. We’re working towards it, sir. We are really working towards it and. We think we are fairly confident on that.
Bharat Shah
Okay. Okay. Fantastic. All the very best. And thank you sir.
Atul Lall
Thank you. Thank you.
Saurabh Gupta
Thank you, sir.
operator
Thank you. We have our next question from the line of Neil Mehta from EQD Securities. Please go ahead.
Unidentified Participant
Yes. So thank you for the opportunity and I. Congratulations. Good set of number. So sir, I just wanted to understand that, you know, SOU is looting, losing somewhere bit of market share. So not the exact but the ballpark level. Can you just guide the volume numbers that possibly Xiaomi has done for the FY25 and similarly for the Motorola as well.
Saurabh Gupta
We can’t share any specific numbers. Please understand we are an EMS company and if some. So that is, that is the reason why it is important that we should have multiple customers. That’s the big de risking strategy for us and that’s the continuous and the most critical process for us. So if Shami for some reason has lost market share then of course others will rather are gaining market shares and we happen to work with most of the customers in the Android ecosystem. So at a broad level we are still. We end up gaining an overall.
We end up gaining an overall large share in the overall market here.
Unidentified Participant
Okay, thank you sir.
operator
Thank you. Ladies and gentlemen, that would be the last question for today and I now hand the conference over to Ms. Bhumika Nair from DAM Capital for closing comments. Over to you, ma’ am.
Bhoomika Nair
Yes. I would like to thank all the participants and particularly the management for answering all the queries and giving us an opportunity to host the call. Thank you very much sir and wish you all the very best.
Atul Lall
Thank you and thanks everyone. Thank you. Really appreciate it.
Saurabh Gupta
Thank you.
operator
On behalf of DAM Capital Advisory, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.