Stories
Dixon Tech Arm Inks IP License with Aviat Networks for Microwave Radios
- •Dixon Electro Appliances Private Ltd (DEAPL), a subsidiary of Dixon Technologies, signed an IP licence agreement with Aviat Networks (India) Private Ltd.
- •The agreement grants DEAPL a limited licence to use Aviat's intellectual property and technical know-how for manufacturing, using, offering for sale, and selling microwave radios.
- •This collaboration aligns with Dixon's strategy to expand its manufacturing footprint and build domestic capabilities in higher-value electronics and telecom products.
- •Brokerages Nuvama and JPMorgan have maintained their ratings on Dixon, with JPMorgan highlighting Dixon's ambition to become a top-10 global EMS player.
- •Dixon's Q1 revenue rose 21.1% year-on-year to –15,548 crore, exceeding estimates, though EBITDA declined 4.1% to –463 crore, falling short of projections.
Key Questions Answered
Dixon's subsidiary, Dixon Electro Appliances Private Ltd (DEAPL), entered into an intellectual property licence agreement with Aviat Networks (India) Private Ltd to manufacture and sell microwave radios and utilize technical know-how for critical telecom infrastructure.
Nuvama cut its FY27 EPS estimates for Dixon by 7% due to a potential delay in its Vivo joint venture consolidation, but raised its FY28 estimate by 9% while maintaining a 'Hold' rating and a ₹14,800 target price. Meanwhile, JPMorgan retained an 'Overweight' rating with a ₹16,400 target price, highlighting Dixon's ambitions to expand into components and high-margin electronics.
Dixon reported mixed June-quarter results where revenue grew 21.1% year-on-year to ₹15,548 crore, beating analyst estimates. However, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined 4.1% year-on-year to ₹463 crore, falling short of expectations.
