Following massive investment plans for a display fab in India, Dixon Technologies reported a 77% YoY increase in net income in the third quarter of FY25.
Dixon Technologies has reported substantial growth in both sales and profits for the fiscal third quarter of 2025, fuelled by its expansion in mobile phone manufacturing.
The electronic manufacturing service (EMS) company’s sales from mobile manufacturing more than doubled, bolstered by acquisitions like its subsidiary Ismartu’s Indian assets. Additionally, Dixon has entered the display assembly market with China’s HKC and plans to build an 8.6G display fab, contingent on India’s Semiconductor Mission 2.0 incentive.
For the third quarter of fiscal 2025, Dixon posted a net income of ₹1.71 billion (approx. US$19.72 million), showing a 77% year-on-year (YoY) increase but falling short of analysts’ expectations. The company’s revenue reached ₹104.5 billion, surpassing the projected ₹99.51 billion.
Dixon’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged to ₹3.98 billion (approx. US$45.90 million), up from ₹1.86 billion (approx. US$21.45 million) a year earlier.
The company has also expanded its smartphone production capacity, with a new facility in Noida, aiming for an annual output of 28-30 million units this fiscal year, up from 5 million last year. It produced 8.3 million units in the last quarter, with exports expected to reach 3 million units in Africa by next year.
On the other hand, Dixon’s telecom and networking division experienced a 48% revenue increase from the previous quarter, while its IT hardware production is ramping up with new facilities in Chennai. The company also plans a joint venture with a global ODM to expand into higher-value segments, such as notebooks and servers.
Looking ahead, Dixon’s 8.6G display fab will require an investment of US$2.7-3 billion, with the potential to generate US$1.7-2 billion in annual revenue once operational.
