Dixon Technologies shares gained after the government approved its 51:49 joint venture with Vivo Mobile India, paving the way for a new smartphone manufacturing company. The partnership is expected to boost Dixon's production volumes, strengthen its position in the Android smartphone ecosystem, and support earnings growth from Q3FY27 onward.
Dixon Technologies (India) Ltd share price gained momentum on Friday, July 10, 2026, after the company received government approval for its joint venture (JV) with Vivo Mobile India. The stock rose as much as 3.32% to ₹13,938.40 on the BSE in early trade. At 9:48 AM IST, Dixon Technologies shares were trading at ₹13,630, up ₹153 or 1.14% from the previous close of ₹13,477.
The approval clears the way for Dixon Technologies and Vivo Mobile India to establish a smartphone manufacturing company in India. The development is expected to strengthen Dixon’s manufacturing capabilities and improve its position in the Android smartphone manufacturing ecosystem.
Dixon-Vivo Joint Venture Gets Government Approval
Dixon Technologies informed stock exchanges on July 9 that Vivo Mobile India received approval from the Government of India through a letter issued by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
The approval was granted under Press Note 3 of 2020, allowing the incorporation of the joint venture company and subscription of shares by Vivo Mobile India.
The JV will be owned in a 51:49 ratio, with Dixon Technologies holding a 51% stake and Vivo Mobile India owning the remaining 49%. Dixon and Vivo will not hold any stake in each other outside the joint venture.
The company has also executed a joint venture agreement and shareholders’ agreement with Vivo India to define the rights, responsibilities, management structure and operations of the JV company after incorporation.
Impact on Dixon Technologies Business
The joint venture company will operate as an original equipment manufacturer (OEM) for electronic devices, including smartphones. It will undertake a part of Vivo Mobile India’s smartphone production orders in India and will also have the ability to manufacture electronic products for other brands.
Dixon Technologies said the partnership will strengthen its manufacturing excellence and execution capabilities while improving its presence in the Android smartphone market in India.
The JV company will become a subsidiary of Dixon Technologies after incorporation. The share issuance by the JV company to Dixon will be treated as a related party transaction and will be conducted on an arm’s length basis as per applicable regulations.
Expected Earnings Upgrade
The Vivo partnership could lead to higher volumes and earnings growth for Dixon Technologies. The JV removes a long-pending overhang on the stock and expects incremental volumes to start from Q3FY27.
Vivo currently holds around 23% market share in India’s smartphone market, and Dixon expects nearly 67% of Vivo’s smartphone manufacturing volumes to come through the JV. The future growth will depend on demand recovery and backward integration.
Smartphone volumes of 45 million units in FY27 and 55 million units in FY28, including Vivo volumes and improved wallet share from other brands.
Dixon had earlier guided for flat smartphone volumes in FY27 compared with FY26. The Vivo JV could result in earnings upgrades, with estimating 6.5 million smartphone units in FY27 and 18 million units in FY28 from Vivo through the JV.
This is expected to drive upgrade in FY27E and FY28E earnings per share, respectively.
