According to the brokerage, Vivo sells around 35-37 million smartphones annually in India. It expects nearly two-thirds of these phones to be manufactured through the Dixon-Vivo joint venture, creating a significant growth opportunity for the company.

During the company's Q4 earnings call, managing director and CEO Atul Lall said Dixon was 'deeply engaged with the government' and remained 'very, very close' to securing approvals for the proposed Vivo joint venture. He added that Vivo sold around 35 million smartphones in India last year and the partnership could add 20-22 million units annually over time.

The brokerage also said higher average selling prices (ASPs) of smartphones are expected to support revenue growth even if shipment volumes remain soft.

It added that Dixon's IT hardware, telecom equipment, servers and optical transceiver businesses are scaling up steadily. The company's backward integration into display and camera modules is also progressing as planned.

The brokerage expects Dixon to remain on track to achieve its FY27 smartphone production guidance of around 33 million units, excluding Vivo volumes, while continued exports and benefits under the government's production-linked incentive (PLI) scheme are expected to support long-term growth.

Dixon Technologies (India) is a design-led solutions provider engaged in manufacturing products across consumer durables, lighting, and mobile phone segments in India.

Dixon Technologies (India) reported a 35.91% decline in consolidated net profit to Rs 297.97 crore on a 2.12% increase in revenue from operations to Rs 10,510.51 crore in Q4 FY26 over Q4 FY25.

In Q4 FY26, revenue from the Mobile & Other EMS division stood at Rs 9,485 crore (up 4.21% YoY), while Home Appliances division was at Rs 329 crore (up 8.94% YoY), and Consumer Electronics & Appliances (LED, TV & Refrigerator) division stood at Rs 697 crore (up 1.16% YoY).