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Dixon Tech shares rise as subsidiary enters JV to manufacture optical telecom products

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Shares of Dixon Applied sciences (India) gained over 1% to Rs 11,738 on the BSE on Wednesday after its subsidiary, Dixon Electroconnect, entered into an settlement with Gemtek Expertise to type a three way partnership in India for manufacturing and supplying optical transceivers and different telecom merchandise.

In keeping with the corporate, the proposed enterprise will manufacture and provide Optical Transceiver-SFP (Small Type-Issue Pluggable), BOSA (Bidirectional Optical Subassembly), and different telecom merchandise that the events mutually agree upon every now and then.

The proposed transaction will use a mutually agreed construction the place Dixon Applied sciences will maintain 60% of Dixon Electroconnect’s whole paid-up share capital, whereas Gemtek will maintain the remaining 40% stake upon completion.

The transaction stays topic to executing definitive agreements, fulfilling customary circumstances precedent, and receiving relevant statutory, regulatory and different required approvals.

In its assertion, Dixon mentioned the proposed three way partnership would give attention to manufacturing optical transceivers, BOSA modules and networking tools. The corporate said that the partnership combines Dixon’s manufacturing capabilities with Gemtek’s expertise in optical modules, telecom infrastructure and networking applied sciences.

Dwell Occasions


Gemtek, in its assertion, mentioned the three way partnership is a part of its enlargement in optical communication and goals to deal with demand associated to high-speed networks and knowledge centre infrastructure.

The corporate additionally said that Dixon Electroconnect’s participation as a beneficiary below the ECMS is predicted to help the proposed enterprise. The partnership is meant to function in segments linked to knowledge centres, telecom infrastructure, optical connectivity, cloud computing, edge computing and networking functions.Dixon Applied sciences reported a consolidated internet revenue at Rs 256 crore within the March-ended quarter versus Rs 401 crore within the year-ago interval, implying a 36% fall. The revenue after tax (PAT) was attributable to the corporate’s house owners. The corporate’s income from operations in Q4FY26 was up 2% to Rs 10,511 crore versus Rs 10,293 crore posted within the corresponding quarter of the earlier monetary yr.

In the meantime, the corporate’s whole revenue grew 3% year-on-year to Rs 10,595 crore versus Rs 10,304 crore in Q4FY25. It included different revenue of Rs 84 crore in comparison with Rs 11 crore within the year-ago interval.

(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Instances)



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