Dixon Technologies Subsidiary Signs MoU with KHY Electronic

Dixon Technologies (India) Limited, founded in 1993 by Sunil Vachani and headquartered in Noida, Uttar Pradesh, is a leading Indian multinational electronics manufacturing services (EMS) company. 

Dixon Acquired the land and Assets of KHY Electronics

On January 20, 2025, Dixon Technologies share price surged nearly 2% following the company’s announcement of plans to acquire the land and assets of KHY Electronics India.

In a regulatory filing, Dixon disclosed that its subsidiary, IsmartU India Private Limited (IIPL), has entered into a binding Memorandum of Understanding (MoU) with KHY Electronics India. Through this agreement, the subsidiary will acquire machinery, land, buildings, and other tangible assets of KHY for a total consideration of ₹133 crore.

Dixon Technologies Q2 FY25 Results

Dixon Technologies showcased a stellar performance in Q2 FY25, with net profit skyrocketing by 265% year-on-year to ₹412 crore, boosted by a ₹209.6 crore one-off gain from the divestment of its stake in a joint venture. Excluding this exceptional item, the adjusted net profit climbed 109% to ₹236 crore, while revenue soared by a remarkable 120% to ₹18,116 crore, propelled by a 235% surge in its mobile segment, which contributed an impressive 82% to the top line.

Although the EBITDA margin stood at 3.7%, slightly trailing expectations due to the higher contribution of the lower-margin mobile business, the company exuded confidence in its growth trajectory by revising its FY25 revenue guidance upwards to ₹40,000 crore. This comes despite a 10% dip in share prices, underscoring its robust strategic outlook and sustained momentum.

Share Price Performance 

At 3:24 PM today, Dixon Technologies (India) share price traded at ₹17,540.00 per share on the NSE.

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