Dixon Tech, Vivo JV transaction to be completed in 2 months, revenue flow from Oct-Dec qtr: CEO

New Delhi, Dixon Technologies expects to complete the transaction of a new joint venture with Chinese smartphone firm Vivo in two months, and its revenue will start reflecting in its balance sheet from the October-December quarter, a senior company official has said.

The joint venture proposal of Dixon and Vivo was cleared by the government in the second week of July. The two companies signed a term sheet on December 15, 2024, to form the joint venture.

"Our Vivo JV is going to get fructified and a transaction concluded within the next two months. And the numbers are going to get accounted for in our financials from Q3," Dixon CEO Atul Lall said in a recent company earnings call.


The company, in a regulatory filing last month, said, "The outer date for completion of conditions precedents for the transaction is 1 (one) year from execution of JVA and/or such other date as is mutually agreed between company and VMI in writing" as an indicative timeline for completion of the transaction.

The JV is expected to reduce risk exposure to Vivo in India, which has faced action from the Enforcement Directorate, as it plans to hive off its manufacturing unit to the new venture.

Dixon Technologies posted a 3 per cent decline in profit after tax to Rs 273 crore in the first quarter of the current fiscal, mainly due to the expiry of the mobile production-linked incentive scheme in March 2026 and increased selling prices driven by elevated input costs and broader supply chain inflationary factors.

The JV with Vivo is expected to significantly increase the consolidated mobile production capacity of Dixon Technologies.

At present, Vivo leads the Indian smartphone market in volume terms.

The Chinese smartphone company is estimated to have sold 3.5 crore handsets in 2025, while Dixon's mobile phone production volume was around 3.2 crore units.

Lal said that Dixon expects mobile phone production to remain in the same range of 3.2 to 3.3 crore as posted in the last fiscal.

The company is also increasing capacities of camera modules in subsidiary Q Tech from 7 crore annually to 18-19 crore annually over the next 15 to 18 months, which will largely cater to captive smartphone volumes, in addition to deepening the level of manufacturing, he added.

Lal said that the construction of the company's display facility is completed and installation of machinery is going on for mobiles, IT hardware products and automotive displays.

"The response from various brands is very encouraging, and the trial will start from the beginning of Q3 and mass production will commence from the end of Q3 and beginning of Q4 this fiscal year," Lal said.