Dixon Technologies (India) Ltd Management Discussions

Global economy¹

The global economy experienced steady growth of 3.2% despite navigating significant challenges, including geopolitical instability, a slowdown in China, and policy uncertainties in major economies. Investor sentiment remained cautious, reflected in rising bond yields across developed nations, driven by concerns over inflation, geopolitical tensions, and potential disruptions in monetary policies.

Global inflation continued to ease, with the IMF projecting an average of 4.2% in 2024, down from 6.7% in 2023. This decline was largely attributed to successful disinflationary efforts in advanced economies. However, inflationary pressures remained in select regions, where central banks took a measured approach to monetary easing.

Outlook

The global economic outlook remains cautiously optimistic, with projected stable growth at 3.3%. Disinflationary trends, driven by a cooling labour market and declining oil prices, are expected to continue, creating a conducive environment for central banks to transition toward more expansionary monetary policies. Inflation is forecasted to ease to 4.3% by the end of CY2025, signalling a steady global economic recovery, particularly in emerging markets.

While challenges, such as geopolitical tensions and structural issues in key emerging markets like China, persist, the overall outlook reflects the potential for growth, supported by government initiatives and fiscal consolidation efforts. The US is likely to see growth from tax cuts and deregulation, with some positive spillover effects globally.

Indian economy²

Indias economy demonstrated remarkable resilience in FY 2024-25, with GDP growth estimated between 6.5% and 6.7% despite global economic turbulence and geopolitical tensions, Indias economic performance remained strong, supported by robust rural consumption, driven by favourable agricultural output, while urban consumption showed signs of plateauing. The services sector continued to be a key growth driver.

Manufacturing industry experienced a slowdown however manufacturing exports, particularly in high-value industries such as electronics strengthened Indias position in global value chains. However, geopolitical uncertainties and supply chain disruptions, have impacted export growth. The electronics industry, particularly semiconductor and automotive components, has displayed strong growth, reflecting Indias increasing role in these critical global sectors.

India also saw a 26% year-on-year increase in Foreign Direct Investment (FDI) inflows, signalling growing investor confidence.³ The countrys position as the third-largest recipient of greenfield investments demonstrates its potential as a hub for technological advancements, particularly in the electronics and manufacturing sectors.

Outlook

Indias economic outlook remains optimistic, driven by strong domestic fundamentals and a robust growth trajectory. The country is projected to maintain its position as one of the worlds fastest-growing economies, with real GDP growth expected between 6.3% and 6.8% for FY 2025-26. This growth is likely to be driven by reduced inflation, favourable weather conditions boosting agricultural output, and enhanced rural consumer spending. Infrastructure spending has grown significantly, increasing by 38.8% between FY 2019-20 and FY 2023-24, with further capital expenditure expected in the latter half of FY 2024-25 to stimulate demand and attract private sector investment.⁴

India is also poised to benefit from increased foreign direct investment (FDI), especially as multinational corporations seek cost-effective expansion opportunities. Government initiatives like the Production-Linked Incentive (PLI) scheme will continue to benefit Indian manufacturing and export markets. The countrys strategic advantage, such as currency depreciation making exports more competitive and emergence as an attractive manufacturing destination, is expected to bolster the sectors growth.

Global Electronics Industry

The global electronics industry is experiencing a rapid growth, fuelled by technological advancements and an ever-growing demand across various industries. Key drivers include the surge in automation within manufacturing processes, increasing reliance on cutting-edge healthcare technologies and the integration of electronics into everyday consumer products and modern vehicles. The sectors growth is also propelled by innovations in artificial intelligence, the Internet of Things (IoT) and the push for sustainable solutions in energy and transportation.

In 2024, the global electronics market is valued at US$~4 trillion, with projections indicating robust growth at a Compound Annual Growth Rate (CAGR) of 6.5% over the next four years.⁵ As technology continues to evolve and newer innovations become more pervasive across industries, they are expected to create more opportunities and position electronics as one of the critical contributors to the global economy.

Source: Frost & Sullivan

As technology advances, the size of the components and the circuits usually become smaller. Electronics manufacturing is observing substantial traction in the adoption of advanced robots, due to their capability to perform tasks at enhanced precision levels. Artificial intelligence is another transformative technology in the EMS segment, primarily changing the way the machines function and interconnect. Partnerships, mergers, JV Agreements, and other types of strategic initiatives are becoming more and more prevalent among the Brands, EMS providers, OEMs, ODMs, and stakeholders as they work to familiarize themselves with the speedy transitions in the manufacturing space.

Range of services offered by EMS companies globally

EMS companies can be contracted at different points in the manufacturing process. While large EMS companies have the capability to offer an entire range of services starting from design, sourcing components, assembly, and testing (also known as ODM), small and mid-size EMS companies offer primarily assembly and testing services (referred as OEMs).

Globally, EMS market is well established, and most service providers have high maturity levels in component fabrication, system assembly & testing. In the last few decades, the market has expanded to offer design & development services & after sales services such as repair and remanufacture, marketing, & product lifecycle management. Recently, some participants have even started offering software solutions due to the increased penetration of digitization in the end markets they serve.

Key drivers for the growth of Global EMS industry acceptance of smart home devices	such as the Internet of Things (IoTs), are expected to boost demand for the EMS industry.
Greater emphasis on vehicle electrification	The electric vehicle market will be the most lucrative in the automotive industry over the next decade. The increased electronic content in each vehicle, energy-related modules and sub- assemblies, as well as charging infrastructure will require an overall electronic ecosystem.
Technological upgrade of facilities	Most of the large manufacturing companies are investing heavily in upgrading the technology of their facilities by adopting digitization and industry 4.0 concepts.
Product development activities	The dependence created by electronics in product development activities across all verticals will turn out to be a significant driver for EMS, especially in consumer electronics and automotive segments where new devices and systems are being developed.
Accelerated demand post COVID-19	The COVID-19 pandemic has currently increased the requirement for EMS services. This will subdue in the mid to long-term once inventory is created. Furthermore, the growing demand for wearables and smart medical devices increases the need for smaller, flexible and light- weight products in the healthcare business

Challenges / market restraints hindering the growth of Global EMS industry

Presence of market participants is high	A high number of market participants in all areas results in competitive pricing which reduces market revenue potential.
Shrinking operating margin	Most of the market participants face challenges with respect to the operating margin. In the EMS industry, profit margins are relatively low. As component prices are based on an average, the key focus is the labor costs.
Complex structure and delay in supply chain	Supply chain delays causing shortage of components are likely to impact the revenue in the short term. Overall, the impact of transformation is very low in the mid and long term.
Shortened product lifecycles and uncertain demand	The EMS sector should be able to handle the rise in demand if it reaches exceptional heights. If demand falls, EMS companies must have a strategy in place for the idle raw materials or machinery.
Regulatory Compliances	Stringent local laws and trade pricing influence the EMS sector, driving OEMs to build in- house manufacturing capabilities.
Skilled labour shortage	There is substantial competition for R&D personnel, qualified technical experts, sales and marketing professionals and post-sales services providers, and the attrition rate is rising in the EMS industry.

Global EMS Industry

The Global EMS market is traditionally comprised of companies that manufacture electronic products, predominantly assembling components on Printed Circuit Boards (PCBs) and box builds for major brands.

Today brands are seeing more value from EMS companies, leading to involvement beyond just manufacturing services to product design and developments, testing, after-sales services, such as repair, remanufacturing, marketing, and product lifecycle management.

The global electronic manufacturing services (EMS) market size was valued at USD 610 billion in 2024. The market is projected to grow from USD 648 billion in 2025 to USD 1,033 billion by 2032, exhibiting a CAGR of 6.9% during the forecast period. (Source https://www. fortunebusinessinsights.com/electronic-manufacturing-services-ems-market-105519)

Critical factors driving this growth are increasing disposable income, emerging and multiple disruptive technologies, improved acceptability of audio and video broadcasting, higher internet penetration, inclination of the youth towards next gen technologies, emergence of e-commerce etc.

Indian Electronics Industry

Indias electronics industry is witnessing rapid expansion, making it one of the fastest-growing sectors in the country. The total market size has more than doubled from USD 87 billion in 2020 to an estimated market size of USD 228 billion in 2025. This reflects a robust CAGR of around 21.2%.

The electronics market in India is further projected to increase to USD 345.7 Billion in 2027. This remarkable growth has been driven by a shifting industry landscape, shaped by a combination of regulatory reforms, economic incentives, and evolving geopolitical dynamics that have collectively accelerated domestic electronics manufacturing.

Indian EMS industry

The global landscape of electronic design and manufacturing is changing significantly, and revised cost structures have shifted the attention of multinational companies to India. At present, the Indian government is attempting to enhance manufacturing capabilities across multiple electronics sectors and to establish the missing links to make the Indian electronics sector globally competitive. India is positioned not only as a low-cost alternative, but also as a destination for high-quality design work. Many multinational corporations have established or expanded captive centers in India.

Indian EMS industry has since then embarked on an upward journey. With most of the global mobile phone manufacturers and their supply chain partners investing in manufacturing, the Indian EMS industry is well poised to unlock its true potential in the coming years.

Business Model of Indian EMS companies

The total addressable ESDM market in India was valued at INR 2.65 trn (US$ 36 bn) in FY21 and is expected to grow to INR 9.97 trn (US$ 135 bn) in FY26 with a CAGR of 30.3%. Contribution of Indian EMS companies is around 40% with a value of INR 1.07 trn (US$ 14 bn) in FY21. This is expected to grow at 41.1% CAGR to reach INR 5.98 trn (US$ 81 bn) by FY26. India is positioned as a destination for high-quality design work, not only as a low-cost alternative. Many multinational companies have established and expanded captive centres in the country. Most brands prefer engaging EMS partners for contract manufacturing, but the ODM model is slowly gaining traction in India, where brands collaborate with ODMs on product development. Many EMS players are gradually expanding to provide complete design services in addition to contract manufacturing/ original equipment manufacturing.

Key growth drivers for Indian EMS Industry

Improvement in demand and supply scenario	- Factors such as stable growth outlook for the economy, Digital India programme, rising disposable incomes, changing lifestyles, emerging work from home culture, expansion of organized retails to tier 2 and tier 3 cities, improving electricity and internet infrastructure, and better logistics infrastructure will provide additional impetus to the industry.
Ease of doing business in India	- Simplifying procedures, reduce the burden of additional taxes on start-ups, strengthen the IP protection framework to position India as an attractive business destination and is also evolving as an innovation driven R&D destination for global companies.
	- Indian government has implemented incentives and policies to attract investment, enhance exports, and improve the ease of doing business in the country.
China + 1 Strategy	- Rising costs and changing geopolitical dynamics have led OEMs to consider diversifying their manufacturing operations, with India being a preferred destination due to its infrastructure and cost advantages.
Atmanirbhar Bharat (Make in India initiative)	- Government self-reliant India campaign along with the focus on the CAPEX and R&D has given a strong push to the domestic marketplace, which is very significant to Indias economic growth.
Government incentives and scheme	- The government of India has launched numerous incentive schemes such as PLI Scheme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, Modified Electronics Manufacturing Clusters Scheme (EMC 2.0), Merchandise Exports from India Scheme (MEIS) leading to manufacturing growth, reduced dependence on the imports and promoted the exports.
Development of electronics ecosystem by global and domestic players	- European Telecom and Networking Products dealers Ericsson and Nokia have conveyed their intention to increase existing manufacturing operations in India to support their worldwide supply chain.
	- Nokia and Ericsson are also going to target the BSNL big ticket 4G contract expansions after the government of India removed some clauses which previously prohibited them from participating.
BIS certification	- India has tightened the quality controls for the electronic products to restrain the rising import of the cheap electronic items and boost the local manufacturing, requiring business to register with the BIS for government clearance.
Import substitution	- To reduce dependence on imports in the long run, sourcing of electronic components should be met through local manufacturers with the help of various incentives and policies.

EMS industry, which traditionally was skewed toward contract manufacturing, is now gradually shifting upward the value chain and increasingly the players are looking towards more designing of the products and giving solutions due to higher margins in the ODM, and better stickiness of business as compared to contract manufacturing which typically needs high asset turnover as it commands lower margins. The industry is also venturing into Joint design development (JDM) business wherein the EMS players collaborate with brands to design and manufacture the products. While the ODM services are on the rise, its share in total pie is expected to remain constant in India and increase gradually in global mix.

Indias EMS industry is dominated by Mobile phones, Consumer electronics, and Automotive segments which is ~80% of the market. However, segments like wearables and hearables, Telecom & IT Hardware are likely to witness higher and faster growth over the next few years.

Segment Overview

Mobile phones

India has emerged as the second-largest smartphone market in the world.⁶ India Smartphone Market was valued at USD 54.7 Billion in 2024 and is expected to reach USD 78.9 Billion by 2030 with a CAGR of 8.2% (Source:https://www.techsciresearch.com/ report/india-smartphone-market/28424.html).

This dynamic industry remains a key contributor to the EMS industry, accounting for 62% of the market.

The mobile phone business delivered exceptional performance in FY 2024 25, with revenues reaching INR 28,116 crs, reflecting a robust 208% year-on-year growth. We have deepened engagements with leading global smartphone brands, reinforcing Dixons position as a trusted manufacturing partner. To support this momentum, we now operate seven mobile manufacturing facilities with a combined annual capacity exceeding 60 million smartphones.

We continue to maintain a strong order book with existing clients and have added new customers, bolstering both domestic operations and export potential. During the year, we acquired Ismartu India Pvt. Ltd., now a Dixon subsidiary, which manufactures smartphones for brands such as Nothing and Transsion (Infinix, Tecno, itel), including exports to Africa.

To further scale operations and enhance technology depth, we have entered into a joint venture with Vivo, where Dixon will hold a 51% stake. PN3 application for FDI approval has been filed, and definitive agreements are in advanced stages. Construction of our flagship mobile manufacturing facility in Noida (~1.2 million sq. ft.) is underway and targeted for completion by Q4 FY 2025–26.

Consumer electronics⁷

India television market is projected to witness a CAGR of 8.36% during the forecast period FY2026-FY2033, growing from USD 11.5 billion in FY2025 to USD 21.8 billion in FY2033F owing to rising incomes, OTT growth, affordable smart TVs, e-commerce discounts, and technology advancements. Growing disposable incomes and a growing middle class have augmented consumer buying power, which has seen consumers moving from plain TVs to smart, big-screen, and high-end ones such as QLED and OLED TVs. The growth in internet penetration has boosted the demand for smart TVs with embedded streaming capabilities. Our LED TV business reported revenues of INR 2,896 crore in FY 2024–25. The global LED TV market continues to face subdued demand due to structural headwinds and shifting consumer preferences. Despite these external challenges, we remained focused on strengthening our ODM capabilities and expanding our customer and product portfolio.

During the year, we successfully onboarded multiple multinational brands and deepened technology partnerships with Amazon (Fire TV) and LG (WebOS). These collaborations aim to enhance product differentiation through smart platform integration, with commercial rollout expected in early FY 2025–26.

Home appliances

Indian washing machines industry has been witnessing sustained and stable growth. Dual income families, growing disposable incomes, and paucity of time have been instrumental in driving the demand for washing machines. Penetration of washing machines in India is currently 13 - 14% implying high scope for growth. Increasing appreciation for the value that the product delivers, affordable pricing, and innovative products has aided the strong growth of washing machines in India. The volume market size for domestic sales of washing machines is 9.6 million units for FY24 and it is expected to grow at a CAGR of 7.4% till FY29. In terms of value, the washing machine market is estimated at INR 139.1 billion in FY24 and is projected to grow at a CAGR of 8.0% from FY24 to FY29 to reach INR 204.2 billion.

Domestic manufacturing of washing machines in India stood at 8.9 million units in FY24. (Source- Frost & Sullivan Analysis)

Our washing machine business continues consistent growing performance with an annual revenue of INR 1,366 crs for FY 24-25 & continues to scale across both Fully Automatic and Semi-Automatic categories. Fully Automatic Top Load (FATL) capacities are being expanded at our Tirupati facility to cater to the growing order pipeline.

In Semi-Automatic Washing Machines (SAWM), we have commenced commercial operations at our new manufacturing facility in Dehradun, which has an annual capacity of 2.5 million units. As part of our product innovation roadmap, we are preparing to launch industry-first SAWM models in 16 kg and 18 kg capacities.

Beyond ODM manufacturing, we have made significant strides in backward integration by establishing an in-house tool room, with moulds now being developed internally. Additionally, we have initiated development of new product lines, including Front Load Washing Machines and robotic vacuum cleaners, while also exploring expansion into adjacent categories within the home appliances segment.

Lighting products

Indias lamps and lighting sector is undergoing a significant transformation as consumers increasingly opt for energy-efficient solutions. Rising environmental awareness and a focus on energy conservation have driven the adoption of LED and CFL lighting. In 2024, the total lighting market in India reached USD 4.6 billion in 2024, and is expected to grow to USD 7.2 billion by 2033, at a compound annual growth rate (CAGR) of 5.1% during 2025 -2033 (Source:https://www.imarcgroup.com/india-lighting-market.) Urbanisation is contributing to this growth, as more cities expand and the middle class seeks stylish and functional lighting that enhances interior spaces.

Within the outdoor lighting segment, we have launched the Professional Product - Flood & Street light series. In a strategic move to enhance cost efficiency and bolster margins, we operationalized our backward integration facility for extrusions used in battens, which is expected to enhance cost efficiency and contribute to margin improvement

Our 50:50 JV with Signify formerly Philips is expected to commence operations from Q2 FY 25–26. The JV is expected to generate operating leverage, driving greater efficiencies, cost optimization & long term value creation through synergies, expanding into new categories including high end indoor lighting products, professional lighting along with unlocking export opportunities.

Refrigerators

The Indian refrigerator market is estimated to grow from USD 5.3 billion in 2025 to USD 7.7 billion by 2030, with a CAGR of 7.6%.⁸ While the direct cool model remains popular due to its affordability and lower energy consumption, the frost-free models are gaining traction in urban regions due to their convenience and advanced features.

In its first year of operations, our refrigerator business clocked revenue of INR 694 crs & has achieved a significant milestone of capturing approximately 8% of the overall Indian market and 48% of the OEM-addressable market in the Direct Cool segment. We have successfully onboarded over 15 customers within the year, demonstrating strong market acceptance and customer confidence.

To support growing demand, we are expanding our Direct Cool production capacity from 1.2 million units per annum to 2 million units by Q3 FY 2025–26. Additionally, we are diversifying our cooling product portfolio with planned entries into categories such as two-door frost-free refrigerators, side-by-side models, mini bars, deep freezers, and visi coolers.

Laptops & tablets/IT hardware products⁹

The laptop market in India is expected to grow at a CAGR of 6.7% between 2024 and 2032, reaching an estimated value of around US $10.5 billion by the year 2032.

We are making significant strides in the fast-growing IT hardware segment. Our dedicated manufacturing facility in Chennai has commenced mass production with an annual capacity of 2 million units, currently catering to HP and Asus, with a strong order pipeline from Lenovo and Asus.

To further strengthen our position and move up the value chain, we have entered into a 60:40 joint venture with Inventec, one of the worlds top five PC ODMs. The JV will manufacture a comprehensive range of IT hardware products, including Notebook PCs, Servers, Desktop PCs, and key components such as SSDs, memory modules, and power supplies. A new manufacturing facility for the JV has been finalized in Chennai, significantly enhancing our capabilities and positioning us as a leading player in Indias IT hardware ecosystem.

Telecom and networking products

The growing demand for high-speed internet and enhanced connectivity, driven by the proliferation of smart devices and the Internet of Things (IoT), is propelling telecom equipment industry forward.

Our Telecom and Networking Products division is emerging as a key growth pillar for Dixon, with deep potential across domestic and export markets. The segment delivered 4x year-on-year revenue growth, supported by increased demand from our anchor customer.

To cater to this growth, we commenced operations at our new facility in Noida, significantly expanding production capacity. We have doubled output for 5G Fixed Wireless Access (FWA) solutions—both indoor and outdoor—for the Indian market, while mass production of IPTV devices has also begun.

Aligned with our backward integration strategy, we have started in-house manufacturing of critical components such as mechanicals and adapters. Additional efforts are underway to localize more parts, aimed at enhancing cost efficiencies and improving margin profile.

Looking ahead, we are actively exploring expansion into non-Customer Premise Equipment (non-CPE) and Low Volume, High Mix product categories, including Radio Access Networks, Ethernet Switches, and Network Transport Equipment—positioning this vertical as a strategic long-term growth driver.

Inverter controller system for air-conditioners

Our 40:60 joint venture with Rexxam, Japan, focused on manufacturing PCBs for air conditioners, has continued to deliver robust performance with healthy return on capital employed (ROCE). In response to growing demand from our anchor customer, we are now setting up a new manufacturing facility in Chennai to expand capacity and further strengthen our position in this high-growth segment.

Wearables & hearables

This segment continues to deliver healthy operating margins and strong Return on Capital Employed (ROCE). We maintain a solid order book in this business and are focused on sustaining profitability & are in discussion to expand product portfolio with addition of new brands with focus also on backward integration & localisation

Opportunities

Component Manufacturing under PLI Scheme

Indias push for component-level manufacturing under the PLI for electronic components opens up large opportunities for Dixon to backward integrate into key components such as camera modules, batteries, mechanical parts, and display module reducing import dependency and improving margin profile.

We are significantly foraying into electronics component manufacturing as the next major phase of its growth & backward integration strategy. The company has already launched a project for display modules & construction of the manufacturing unit is underway in partnership with HKC, focusing on mobile phones and IT hardware products in the first phase, with mass production expected to commence by end of this fiscal with capacity 2 mn displays/month which will be further enhanced to 4 mn displays/month in the next phase. Company is also actively perusing partnership & investment in electronics components manufacturing such as camera modules & mechanicals.

Premiumisation

India has a large population with rising aspirations providing for ample headroom for growth and a growing predisposition towards premiumisation. As technology evolves, there is an increasing demand for more sophisticated electronics and components. EMS companies can capitalise on this demand by providing innovative and high-quality features.

Faster replacement cycle and high demand for emerging technologies:

Electronic products have shorter life cycles as a result of rapid technological improvement and newer products with enhanced technology. Customers are also replacing their electronics with newer products with constantly changing customer views and expectations.

Shift towards e-commerce

The proliferation of internet and high smartphone adoption have led to greater awareness of the latest models of electronics, thereby driving the growth of online shopping.

Attractive manufacturing destination

The global supply chain disruptions, primarily due to the pandemic and geopolitical tensions, have led companies to seek more diversified and resilient manufacturing bases. India has become an attractive alternative to China, especially in terms of lower labour costs and a growing skilled workforce. Driven by government policies like Make in India, Digital India, Skill India and Production Linked Initiative (PLI) scheme, India can become the next global IT hub benefitting the EMS industry.

Increasing demand for AI-integration & IoT

The rise in tech adoption, including smart devices, IoT (Internet of Things), and electric vehicles, opens new avenues for EMS providers.

Challenges

Global competition

India faces tough competition from established players like China, Vietnam, and other Southeast Asian countries, who often have better infrastructure and lower production costs. Competitors in countries like China have a strong presence and advantage due to long-standing operations, well-established supplier networks, and economies of scale.

Supply chain disruptions

The EMS industry relies on complex multi-national supply chains for sourcing and assembly of raw materials and components. The components shortage during the pandemic, driven by the scarcity of critical minerals, demonstrated the urgent need for diversifying and establishing resilient supply chains. Ongoing geopolitical turbulences continue to pose strong threat of supply chain disruptions impacting production timelines and costs.

Regulatory challenges

EMS providers must navigate regulatory complexities related to labour laws, environmental norms and taxation leading to project delays, compliance costs and operational hurdles. Indian legal framework may not always align with the global standards making it difficult for the manufacturers to manoeuvre.

Geo-Political Risks

Global electronics supply chains remain vulnerable to disruptions due to geopolitical tensions (e.g., U.S.-China, Middle East), raw material shortages, and currency fluctuations, impacting cost and continuity.

Financial overview

Categories	FY 24-25	FY 23-24
Total Income (In crores)	38,880	17,713
EBITDA (In crores)	1,528	720
PAT (In crores) (including exceptional items)	1,233	375
PAT (In crores) (excluding exceptional items)	843	375
Net Debt Equity Ratio*	(0.02)	(0.03)
Interest Coverage Ratio **	8.1	7.4
Current Ratio***	1.0	1.0
Debtor Days #	60	45
Inventory Days##	32	29
Operating Profit Margin###	3.9%	3.9%
Net Profit Margin^ (including exceptional items)	3.2%	2.1%
Net Profit Margin^ (excluding exceptional items)	2.2%	2.1%
Return on Net Worth^^ (excluding exceptional items)	32.5%	25.2%
Return on Net Worth^^ (including exceptional items)	47.5%	25.2%

*(Gross Debt- cash & bank balance)/ Total Equity ** EBIT/Finance Cost *** Current Assets/ Current Liabilities # Income from operations/Receivables ## Cost of Goods Sold/Inventory ### Operating Profit/ income from operation ^ PAT/Income from operation ^^ PAT/ Average Shareholder Fund

Original Design Manufacturer (in percentage) share in revenue

Years	Consumer electronics	Lighting products	Home appliances
FY 2025	56%	92%	100%
FY 2024	34%	92%	100%
FY 2023	23%	90%	100%
FY 2022	4%	91%	100%
FY 2021	5%	90%	100%

Risk management

Dixon Technologies adopts a proactive and structured approach to risk management, aligned with its strategic objectives and operational priorities. The Company has instituted robust governance mechanisms to identify, assess, and mitigate potential risks across its manufacturing operations, supply chain, regulatory compliance, and financial exposures. Regular risk assessments are conducted at business unit levels and consolidated at the enterprise level to ensure timely response to emerging threats, including global macroeconomic volatility, technology disruptions, and geopolitical uncertainties. Cybersecurity, ESG-related risks, and dependency on key customers and suppliers are also carefully monitored. By integrating risk management into decision-making processes, Dixon aims to safeguard stakeholder interests, ensure business continuity, and sustain long-term value creation.

For more on Risk management, kindly refer to ‘Risk Management segment of the Integrated report.

Research and development

The fast-paced electronics industry requires companies to stay ahead of the curve. In recognition of this dynamic environment, Dixon has made considerable investments in enhancing its Research and Development (R&D) capabilities. It has state-of-the-art R&D facilities that have been working continuously to innovate technologies that enhance the efficiency and performance of design and manufacturing processes.

Internal control system

Company has established a comprehensive internal control frameworkdesignedtoensuretheintegrityofitsfinancialreporting, safeguard its assets, and promote operational efficiency across all business verticals. The system of internal controls is aligned with globally accepted practices and is regularly reviewed and strengthened to address the evolving scale and complexity of operations. The Company has implemented robust Standard Operating Procedures (SOPs), automated workflows, and IT-enabled monitoring tools to enhance transparency, compliance, and accountability. Independent internal audits are carried out periodically by reputed audit firms and findings are reviewed

Human resource

Dixon Technologies has a zero-tolerance policy towards any form of discrimination or harassment. It provides clear guidelines on inappropriate conduct and maintains confidential reporting mechanisms for employees to voice any concerns. Regular awareness programmes and training sessions are held to promote an inclusive and supportive environment. The HR Department oversees policy enforcement, with additional support from an Internal Committee. Furthermore, Dixon has a dedicated Grievance Redressal Committee alongside a Prevention of Sexual Harassment (POSH) committee to ensure prompt and effective resolution of concerns.

8,890

Employee count (Permanent & Contractual) (Standlaone Basis)

by the Audit Committee to ensure timely corrective actions. These mechanisms collectively support Dixons commitment to governance excellence and reinforce its ability to deliver consistent, compliant, and value-accretive performance.

Cautionary statement

The Management Discussion and Analysis (MDA) section may include forward-looking statements regarding prospects. These statements entail various known and unknown risks and uncertainties, which could result in material differences between actual results and the forward-looking statements. The estimates and figures presented in the report are based on certain assumptions made by the Company, considering both internal and external information currently available. However, these assumptions are subject to change over time due to shifting underlying factors, potentially leading to adjustments in the estimates. It is important to note that forward-looking statements reflect the Companys current intentions, beliefs, or expectations only as of the date of their issuance. The Company is not obligated to revise or update any forward-looking statements in response to new information, future events, or other factors.