Dixon Tech Gains As ₹46,000 Crore Mobile PLI 2.0 Nears Rollout

The government is working on a follow-up to the earlier production-linked incentive (PLI) programme for mobile phones, which ended in March this year. The new version, widely referred to as PLI 2.0, is expected to come with an outlay of roughly ₹46,000 crore.

Dixon Technologies sits at the centre of this story as more than 80% of its business comes from mobile manufacturing, which means policy support directly affects its numbers.

Dixon Technologies Ltd shares moved higher on 15 April, rising 5.38% to close at ₹11,068.50, as expectations around a fresh incentive scheme gathered pace.

On 16 April, the stock opened at ₹11,250 and quickly reached an intraday high of ₹11,382. At 11:10 AM, the stock was trading in the green at ₹11,245.

What Could The New PLI Scheme Look Like?

Unlike the first phase, which focused largely on boosting output, the next round may put more weight on exports and local value addition. Officials are still in discussions, but the rollout is being targeted around May, subject to approvals.

Smartphone exports from the country stood at about ₹2.62 lakh crore in 2025.

Exports under the earlier incentive scheme have crossed ₹6.2 lakh crore till February 2026. This is about 27% higher than the target of ₹4.87 lakh crore set for the scheme.

Why Is Dixon Technologies In Focus?

Analysts tracking the sector say a continuation of incentives could help Dixon expand production, use its capacity more efficiently, and add new customers over time.

Under the earlier scheme, incentives are estimated to have lifted margins by around 100 to 150 basis points. Even after passing on a part of that benefit to clients, the company has been able to stay competitive on pricing while protecting profitability.

Also Read - HDB Financial Q4FY26: Profit Jumps 41% To ₹751 Crore, Share Price Rises Over 7%

Will The Gains Last?

That said, not everything is straightforward. With the first scheme now over, there is a risk of some near-term pressure on margins. At the same time, rising component costs, especially memory, have made the operating environment tougher in recent months.

There is also the question of valuations. Even after a correction, stocks in the electronics manufacturing space continue to trade at elevated levels, which leaves little room for missteps.

The next phase of incentives could offer support, but the real test will be execution. How much of the benefit flows through to earnings, and how companies handle costs will decide whether this optimism holds.

Sources:

NDTV Profit

The Economic Times