Under the agreement, Aviat has granted DEAPL a limited licence to use specified intellectual property, including technical know-how, for the manufacture, use, offer for sale and sale of microwave radios.
The agreement is part of Dixon’s broader push to expand its manufacturing footprint and build capabilities in higher-value electronics and telecom products.
Commenting on the development, Atul B Lall, Vice Chairman and Managing Director of Dixon Technologies, said the collaboration marks a significant milestone in DEAPL’s strategy to expand its manufacturing footprint and strengthens the company’s focus on building domestic capabilities for critical telecom infrastructure.
Aviat Networks is a wireless transport solutions provider with more than one million systems sold across 170 countries, according to the company.
Recent brokerage views
The agreement comes against the backdrop of increasing investor focus on Dixon’s expansion into components and higher-margin electronics manufacturing.
Last week, brokerage firm Nuvama cut its earnings per share (EPS) estimates for Dixon for FY27 by 7%, citing a likely delay in the consolidation of its Vivo joint venture. However, it raised its FY28 EPS estimate by 9% on expectations of a faster scale-up in the components business.
Nuvama maintained its ‘Hold’ rating on the stock with a target price of ₹14,800 per share.
JPMorgan, meanwhile, retained its ‘Overweight’ rating on Dixon on September 23, with a target price of ₹16,400. The brokerage highlighted Dixon’s ambition to become a top-10 global electronics manufacturing services (EMS) player within five years and a top-five player over the next decade.
JPMorgan said India has significant headroom to expand its share of the global EMS market as global electronics companies seek alternative manufacturing locations. It also pointed to Dixon’s expansion into components and higher-margin product categories as potential areas of scale-up.
Q1 performance
Dixon’s June-quarter results were mixed against analyst expectations.
Revenue rose 21.1% year-on-year to ₹15,548 crore, ahead of the ₹14,769 crore estimate in a CNBC-TV18 poll.
However, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined 4.1% year-on-year to ₹463 crore from ₹483 crore. The figure was also below the CNBC-TV18 poll estimate of ₹499 crore.
Shares of Dixon Technologies were trading at ₹13,156 on Wednesday, down ₹94, or 0.71%, from the previous close.