Following the approval, both companies have executed the joint venture agreement.
The JV, which is yet to be incorporated, will be owned 51% by Dixon and 49% by Vivo and will undertake original equipment manufacturing (OEM) of smartphones and other electronic devices in India. The venture will start with an initial paid-up capital of ₹5 crore.
The development is seen as a strategic win for Dixon, given Vivo’s strong position in India’s smartphone market.
Vivo sells around 35 million smartphones annually in India, accounting for nearly a quarter of the country’s 150 million-unit market. Management expects around 6 million Vivo devices to be manufactured by Dixon in FY27, increasing to 20 million units in FY28.
Vivo’s products also command 20-30% higher realisations than Dixon’s existing smartphone portfolio, which could support margins.
Dixon has guided for a potential revenue opportunity of around ₹30,000 crore from the JV. Operations are expected to commence within 60 to 90 days after the approval, implying a likely start in Q3 FY27.
Management had earlier indicated that smartphone volumes could remain flat at around 33 million units in FY27 due to elevated memory prices affecting demand. However, the Vivo partnership is expected to provide a significant growth lever over the medium term. Dixon manufactured around 33 million smartphones in FY26.
What brokerages are saying
Brokerages have turned constructive on the approval. Equirus expects the JV to add 8-10 million smartphone volumes in FY27 and sees it as one of the company’s most important growth catalysts.
JPMorgan has raise its price target to ₹16,700 from ₹14,300 earlier. The brokerage, in its June 2026 report, estimated JV-led mobile volumes of 11 million units in FY27 and 22 million units in FY28, while DAM Capital said the approval strengthens its confidence in adding 10 million Vivo volumes in the second half of FY27.
JPMorgan estimates total smartphone volumes at 43-44 million units in FY27 and 58 million units in FY28.
UBS has maintained its ‘Buy’ rating on the stock, with a price target of ₹13,700, citing the long-awaited PN3 approval for the company’s joint venture with Vivo as a key positive.
The brokerage believes the approval is an important growth catalyst and is expected to contribute meaningfully to Dixon’s earnings over FY27 and FY28.
Management had earlier indicated that the transaction would be completed within 45 to 60 days of receiving the PN3 approval.
According to UBS, Vivo sold around 32 million smartphones in calendar year 2025. As previously guided by management, nearly two-thirds of these volumes are expected to be shifted to the joint venture, implying a potential monthly production volume of around 1.75 million units.
Motilal Oswal has retained its ‘Buy’ rating and raised its price target to ₹16,100. The brokerage believes the JV with Vivo will strengthen Dixon’s manufacturing capabilities and enhance its market position in India’s Android smartphone segment.
According to the brokerage, the approval also removes a long-standing overhang on the stock, as the JV is expected to start contributing incremental volumes from Q3FY27.
Vivo currently commands around 23% share of India’s smartphone market, and Dixon expects nearly 67% of Vivo’s production volumes to be routed through the joint venture.
Going forward, the brokerage believes investor focus will shift to a recovery in demand and the company’s backward integration efforts. Any announcements related to the PLI 2.0 scheme could act as an additional positive trigger, it added.
Phillip Capital, however, maintained its ‘Sell’ rating, citing that the impact of the JV was already factored into its revenue and EBITDA estimates.
India’s mobile phone manufacturing market has grown at a 23% CAGR between FY21 and FY26 to ₹6.3 trillion, even as the domestic smartphone market declined 3% in Q4 FY26.
The approval of the Vivo JV is expected to strengthen Dixon’s position as one of India’s largest electronics manufacturing services players.
Dixon Technologies shares rose 4.1% to close at ₹13,465 on Thursday. The stock has gained more than 11% so far in 2026.
