Beneath is the evaluation of the corporate engaged in providing digital Manufacturing Providers and has delivered a multi-bagger return of 1,405 % prior to now 5 years and in addition introduced robust capex and future prospects for its enterprise, which is damaged down beneath
Overview
Dixon Applied sciences (India) Restricted, integrated in 1993, is an Digital Manufacturing Providers (EMS) firm with operations within the digital merchandise vertical, reminiscent of shopper electronics, lighting, residence home equipment, closed-circuit tv cameras (CCTVs), and cell phones. It additionally undertakes reverse logistics operations.
Dixon is at present buying and selling 23.3 % lower than its 52-week excessive of Rs.19,148.90. And the corporate’s earlier 52-week low stands at Rs 8,453.00; on common, the inventory has given a Return of 71.08 % CAGR prior to now 5 years.
The corporate has persistently demonstrated robust progress in web income all through the previous 5 years. The online revenue elevated at a CAGR of 59.35 %, rising from Rs 120 crores in FY20 to Rs 1,233 crores in FY25, and its income have grown at a CAGR of 54.60 % prior to now 5 years from Rs 4,400 crores in FY20 to Rs 38,860 crs in FY25
SEGMENTAL PERFORMANCE AND FUTURE PLANS
Cellular Telephones
Dixon Applied sciences’ cell phone phase delivered distinctive efficiency in This autumn, with revenues surging 194 % YoY to Rs 9,102 crore and EBIT rising 232 % YoY to Rs 349 crore, with a margin of three.8 %.
It’s witnessing robust order flows from key shoppers, together with Xiaomi, Longcheer, and Ismartu (manufacturers like ITEL, Infinix, Tecno, and Nothing), with a rising export focus, significantly to North America and Africa. A brand new partnership with NxtCell for the French model Alcatel provides to this progress
Shopper Electronics (LED TVs & Fridges)
Within the Shopper Electronics phase, Dixon’s LED TV enterprise reported This autumn income of Rs 689 crore with an EBIT of Rs 42 crore and a margin of 6.1 %, although revenues confronted strain on account of structural points within the class and a few market share loss.
To counter this, the corporate is taking strategic steps, together with increasing into new product areas (like IFPDs and academic TVs), backward integration, value optimization, ODM migration, and collaborations with OS platforms like Amazon Hearth TV and LG WebOS. Investments are being made in CKD operations and robotic panel meeting, with an eye fixed on B2B and industrial show markets.
In fridges, onboarding over 15 prospects, Dixon had a powerful debut, capturing roughly 8 % of the Indian market and 48 % of the OEM addressable market within the direct cool phase, Capability is being ramped up from 1.2 million to 2 million models yearly, with new product entries deliberate throughout the cooling class. A sturdy FY26 order e-book helps the corporate’s expectation of fifty % progress, with sustainable margins within the 9.5–10.5 % vary underneath its ODM mannequin.
Residence Home equipment
Within the Residence Home equipment phase, Dixon reported This autumn income of Rs 302 crore with an EBIT of Rs 37 crore, attaining a powerful margin of 12.2 P.c. This margin growth was pushed by elevated scale, worth engineering, value optimization, innovation, and value-added choices. The corporate is increasing capability at its Tirupati plant and gearing up for brand spanking new product launches, together with industry-first semi-automatic washing machines (16/18 kg), front-load washing machines, robotic vacuum cleaners, and new ODM designs scheduled for launch in Q2 FY26.
Lighting
Within the Lighting phase, as of This autumn, it made a income of Rs 200 crore with an EBIT of Rs 15 crore, reflecting a margin of seven.3 %. It additionally signed a 50:50 three way partnership with Signify is about to start in Q2 FY26, with definitive agreements anticipated by Could 2025.
This JV goals to drive working leverage, create synergies, allow entry into the high-end {and professional} lighting market, and open up export alternatives. Moreover, backward integration has been operationalized to drive value effectivity and help margin enchancment.
Telecom & Networking Merchandise
Within the Telecom & Networking income of Rs 1,288 crore practically 5x progress YoY. Its new Noida facility is working at optimum utilization, with capability for 5G mounted wi-fi entry gadgets now doubled. The corporate is ramping up manufacturing of IPTV bins, with a brand new mannequin slated for launch in Q2 FY26. Backward integration efforts are progressing, with localized castings, moldings, and adapters already in place and additional localization underway.
Laptops & Tablets (IT {Hardware})
Within the Laptops & Tablets (IT {Hardware}) phase, Dixon has begun mass manufacturing for HP and ASUS at its devoted Chennai facility, with Lenovo at 30,000 models/month. A 60:40 JV with Inventec will give attention to notebooks, PCs, servers, and elements, with operations primarily based adjoining to the present facility in Chennai
Wearables & Hearables
Within the Wearables & Hearables phase, Dixon reported This autumn income of Rs 196 crore, supported by a wholesome working mannequin and robust ROCE. The corporate is increasing its product portfolio with a give attention to backward integration and localization. Its JV with Rexxam contributed Rs 121 crore in This autumn income, with a brand new Chennai facility finalized for the anchor buyer to help future progress.
Different Capability growth
Dixon plans a capex of Rs 900 crore in FY25, with FY26 steerage at Rs 900–1,000 crore, backed by robust money flows and out there credit score strains. Its investments are targeted on increasing capability, driving backward integration, and getting into new product classes to help long-term progress.
Trade projections and alternatives for Dixon
Within the cellular phase, India’s market is round 150 million models, with 90 million models out there for outsourcing. Dixon maintains strategic partnerships with main manufacturers besides Samsung, the place it has a unique association. The corporate goals to export 10–12 million models in FY26,
Concentrating on North America and Africa, with important progress potential in exports. The TV phase faces structural challenges and shifting shopper preferences, impacting demand and Dixon’s market share; the corporate is addressing this by means of product diversification, ODM migration, and price optimization. In fridges and home equipment, Dixon is experiencing robust progress and margin enchancment pushed by new classes, capability growth, and a 100% ODM mannequin supporting sustainable margins.
Written By Likesh Babu S
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