Dixon Technologies’ Shares Jumped 7% After Government Approves Joint Venture With HKC

Dixon Technologies released a circular on Monday informing that the Ministry of Electronics and Information Technology (MeitY) has cleared its proposal to partner with China-based HKC Overseas.

After the approval, Dixon Technologies India Ltd shares moved sharply higher on Tuesday (10 March 2026).

The stock gained about 7% during the session, pushing it back above the ₹10,000 level, a mark it had slipped below recently amid weakness in technology stocks.

Government Approval For Joint Venture

As part of the arrangement, Dixon Display Technologies Private Ltd (DDTPL), a wholly owned unit of Dixon, will turn into a joint venture company. Dixon will hold 74% of the equity, while HKC Overseas will own 26%.

The proposed venture will make and supply different types of display parts. These include liquid crystal modules and thin-film transistor liquid crystal display (LCD) modules, which are commonly used in devices such as smartphones, televisions, laptops, computer monitors, and even display panels in vehicles.

Dixon said the partnership is expected to help expand the production of such components within India. The move could also support the government’s Make in India initiative.

Regulatory Conditions For The Deal

The joint venture arrangement follows a share subscription and shareholders’ agreement that Dixon and HKC signed on August 16, 2025.

Because HKC is based in a neighbouring country, the investment needed approval from the government under Press Note 3 of 2020, which regulates certain cross-border investments. The proposal also comes under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.

Once all approvals are in place and the deal is completed, Dixon Display Technologies will function as a joint venture. The plan is to use Dixon’s manufacturing presence in India along with HKC’s experience in display technologies to expand production in this segment.

Third Quarter Financial Performance

Dixon recently reported its results for the third quarter of the financial year 2025-26, showing modest growth in revenue. The company posted revenue of ₹10,671 crore, which is 2.1% higher than the same quarter last year.

However, sales from the mobile phone manufacturing segment were softer during the quarter. Revenue from this division fell 27% compared with the previous quarter. The segment continues to account for the bulk of the company’s business, contributing about 92% of total revenue.

The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of ₹414.6 crore for the quarter. Compared with last year, EBITDA rose by about 5.8%. Dixon’s EBITDA margin improved to 3.9%, slightly higher than 3.75% in the same period a year ago.

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Stock Performance Over The Year

Despite the rally seen on Tuesday, Dixon Technologies shares have faced pressure in recent months. The stock has fallen roughly 16% over the past month. Over the last six months, the decline is close to 45%, while the stock is down about 19% since the start of the year.

The approval for the HKC partnership appears to have improved sentiment for now, as investors see it as a step toward building local capabilities in display manufacturing.

Sources:

Economic Times

CNBC TV18