Ladies and gentlemen, good day and welcome to the Dixon Technologies Q4 FY 2026 earnings call, hosted by DAM Capital Advisors Limited. As a reminder, all participant lined will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation conclude. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded. On the conference with Mr. Tanay Shah from DAM Capital. Thank you, and over to you, sir. Thank you, Ikra. Good evening, everyone. Welcome to the Dixon Technologies Q4 and FY 2026 earnings call. Today, we have the management being represented by Mr. Atul Lall, Vice Chairman and Managing Director, and Mr. Saurabh Gupta, Director and Group CFO. At this point, I will hand over the floor to Mr. Lall for his initial remarks, post which we will open up the floor for Q&A. Thank you, and over to you, sir. Thank you, Tanay. Good evening, everyone. This is Atul Lall, and joining me, today is our Director and Group CFO, Saurabh Gupta. Good evening, everybody. I would like to welcome warmly all our stakeholders to discuss our Q4 and 12 months performance for financial year 2025, 2026 and future growth outlook. The key highlights for the quarter are as below. The revenues for the quarter ended March 31, 2026 was INR 10,520 crores. EBITDA, excluding exceptional gain for the quarter, was INR 418 crores. PAT after minority interest and excluding exceptional gain for the quarter was INR 192 crores. The key highlights for the whole year are as below. Revenues for the year ended March 31, 2026 were INR 48,893 crores against INR 38,880 crores in the same period last year. That's a growth of 26%. EBITDA excluding exceptional gain for the year was INR 1,887 crores against INR 1,528 crores in the same period, which is a growth of 23%. PAT after minority interest, excluding exceptional gain for the year was INR 845 crores against INR 706 crores in the same period last year, which is a growth of 20%. Starting March 26, global macroeconomic landscape has undergone a dramatic transformation, including rising Middle East tensions and concerns around a potential U.S.-Iran escalation, leading to disruption across supply chains, freight, energy, forex, and commodity prices. Q4 revenues remain flat due to geopolitical concerns, softer consumer demand, inventory rationalization by brands, elevated input cost majorly impacting the smartphone and IT hardware segment. Electronics industries continue to face inflationary pressure in key components such as memory chips and semiconductor-linked inputs, driven by AI-led demand and supply constraints, resulting in cautious procurement behavior towards brands. Despite near-term headwinds, we continue to strengthen our customer partnerships and expand capacities across segments while accelerating our backward integration and localization strategy. Our priorities remain clear to sustain growth momentum, strengthening our competitive positioning, and continue to invest in talent and capabilities enhancement. We will be expanding the capacities of camera module in our subsidiary, Q-Tech, which is an ECMS beneficiary for smartphones from 70 million annually to around 180 million-190 million annually over the next 15-18 months, largely catering to our captive smartphone volumes. In addition to deepening the level of manufacturing, capturing more value add and in-depth. We have received PM3 and ECMS approval for 74:26 display module in JV with HKC. Construction of our display facility is completed, and installation of machineries are ongoing for mobiles, IT hardware products, and automotive displays. The response from various brands is very encouraging. The trials will start from beginning of Q3, and mass production will commence from end of Q3, beginning of Q4 this fiscal. We remain focused to strengthen capital efficiency and balance sheet quality, improved asset utilization, operating leverage, and disciplined capital allocation, supported healthy ROC and ROE of 44.8% and 28.1% respectively. Overall working capital efficiency led to stronger cash flow generation and working capital cycle of -8 days. We remain focused on sustaining profitable growth while maintaining strong return ratios and balance sheet discipline. We remain confident in the long-term Indian EMS opportunity supported by supply chain diversification, increased localization, supportive government policies, PLI-led scale expansion, and continue to create a strong multi-year growth runway for the industry. I'll share with you the business performance and insights in each of the segments. Mobile and other EMS businesses. Revenue for the quarter for mobile and other EMS business was INR 9,485 crores and operating profit of INR 337 crores. Mobile industry has seen some headwinds from memory price inflation and demand moderation in the last six months. Over the past few weeks, supply-demand dynamics are becoming more balanced, and we are beginning to see an improvement in customer ordering pattern. We expect a higher double-digit growth quarter-on-quarter in the smartphones volume, along with growth in selling prices by 12%-15%. We strongly feel that the momentum will sustain for the balance part of the fiscal year. We expect a strong growth in volume for our existing U.S. brand, and we expect a significant uptick in volumes for our subsidiary, iSMARTu, on export for largely feature phones and also smartphones, mainly for Africa market from mid-Q2, and we started manufacturing smartphones for HMD in Q1. Our 400,000 sq ft facility for 74:26 Longcheer JV for manufacturing of smartphones and other electronic products is expected to start operations by Q3, which will meaningfully strengthen our execution capabilities. We are having robust order book for smartphones and also in advanced discussion with them for adding other product categories in the JV. Construction of our 1 million sq ft facility in Noida with higher capacities for our anchor customers is nearing completion. We expect the operations to commence by Q2 this fiscal. Telecom and networking product. The segment continued its strong growth trajectory on the back of expanding customer relationships and higher execution across key product categories, and driven by increasing network infrastructure investments, including capturing emerging opportunities and growing localization of telecom equipment manufacturing. We have commenced manufacturing of highly complex telecom backhaul microwave radios and plan to initiate exports in this fiscal. We have commissioned a new manufacturing plant for capacity expansion and increased warehousing area to support the growth trajectory. Our strategy in this vertical is to move up the value chain from pure EMS to design-led, solution-centric partnership, and have now entered into joint design and manufacturing model with a key customer enabling greater backward integration, localizing a higher share of the BOM. We expect this vertical to deliver high double-digit revenue growth in the current fiscal. IT hardware products. The segment delivered a healthy performance for the quarter under review, and we expect 3x growth in the revenues in the current fiscal against last year, with huge uptake in order books from our customers. Our dedicated IT hardware products manufacturing unit in Chennai has successfully stabilized mass production of laptops and all-in-ones, and have secured orders for desktop from one of our customers. The execution for the same shall start in Q2 of this fiscal. We have also started manufacturing tablets in addition to laptops for our existing customer. Our new facility adjacent to our existing facility under our 60/40 JV with Inventec Taiwan is progressing well and expected to go into mass production in Q3 of the current fiscal. In line with our backward integration plans, we'll commence SSD manufacturing in Q2 and display module with HKC from end of Q3, beginning Q4. We're also exploring other critical components such as power supply and mechanicals, which will enhance value addition and margins. We are also in discussion with a JV partner to participate in the fast-growing server opportunity and to move from end client IT hardware into data center and enterprise infrastructure hardware, which is supported by strong government policy tailwinds on server manufacturing and backward integration, including a clear push on localization and a tax holiday framework for the same, which meaningfully improves the viability and return profiles of India-based server and component manufacturing. All the work taken together, these drivers give us strong visibility on robust growth in the vertical and potential to make it a meaningful pillar for Dixon's overall portfolio over the next few years. Home appliances. The revenue for the quarter was INR 329 crores and operating profit was INR 31 crores. Semi-automatic washing machines continued to deliver robust growth. We have started manufacturing semi-auto washing machines in 16 kg and 18 kg capacity, which is first across the industry. Fully automatic washing machine business is scaling well on the back of healthy demand and deeper engagements with key brands. We have a healthy order book in emerging categories such as robotic vacuum cleaners, where we see strong potential for multi-year growth and also deeply working on introduction of other appliances like dishwashers, microwaves, and kitchen chimneys, which would help us to offer a complete home appliances portfolio. This segment continues to demonstrate strong ODM capability across design support, testing, manufacturing, product customization, value-added offering, increase in automation which will enhance margins and improve customer stickiness. Addition of a new manufacturing facility in Tirupati will expand our capacities from 0.6 million units per annum by another 0.3 million units, including fully automatic front-loading washing machine, which will be launched by end of Q2 this financial year. This is the first Indian company launching the ODM solution. Lighting. The JV with Signify continues to deliver strong revenue growth. We expect the revenues to grow almost to 2x in the current fiscal. The growth is being driven by the strong operational synergies between Signify's technology leadership and Dixon's manufacturing scale, leading to enhanced productivity, improved operational efficiency, and enhanced cost competitiveness, with huge focus on automation and backward integration. Further building on our share in B2B space on bulbs, batten, and downlighters, we are significantly increasing our volumes on the other niche products like two-by-two panel lights, T lights, mirror lights, positioning us firmly as the foremost player in the lighting industry, which is witnessing consolidation at a rapid scale. Pursuing an active product mix improvement strategy, we are continuously adding premium indoor and professional lighting products and luminaires to our portfolio. We have received two export orders from one of the largest U.S. chain and a European retail chain for the strip lights, which will start getting executed from Q2 and are also in discussion for other product categories. Consumer electronics, that is LED TV and refrigerators. Revenue for the quarter under review was INR 697 crores with an operating profit of INR 40 crores. The quarter under review saw a temporary slowdown in industry demand due to geopolitical concerns and rising input costs. We have proactively procured advanced orders from customers with better price offerings for the upcoming quarters. Our focus remains on large screen, smart, connected, and premium models where we can differentiate through manufacturing quality, platform capabilities, cost efficiency, and technological upgradation. We have launched production of high-end mini LED TVs, and we'll be shifting it to ODM-based model by Q2, and also introducing soundbar series, enabling our customers to tap into the fast-growing premium segments. Refrigerators, Q4 marked a transition to revised BEE norms and upgraded energy efficiency standards for compressors. This led to industry-wide price increase just ahead of the peak summer demand season beginning in January. As a result, several brands focused on liquidating existing inventory with older BEE ratings and limited procurement under the new norms. We continue to see traction with healthy orders and improved visibility both in direct cools and minibars that's 50 L and 100 L. Our ODM capability that's scaling well, allowing us to offer more differentiated value-added designs in the both faster model refreshes. To support future growth, we're expanding our current facility by another 375,000 sq ft, which will also enable manufacturing of two-door refrigerators, deep freezers, visi coolers, and side-by-side refrigerators with meaningful opportunity to move up the value chain, expand wallet share with customers, and build a broader appliance platform over the period. Rexxam Dixon Electronics, our 60/40 JV with Rexxam Japan for AC PCBAs continues to perform well, delivering healthy growth along with a strong cash flow and a strong ROCE, with a stable and long-term relationship with our anchor customer. We also added a new facility in Chennai, strategically located closer to our anchor customers, which will expand our capacity and strengthen our partnership. Wearables and hearables, this vertical operated through our JV with Imagine Marketing continues to see broad-based growth with solid balance sheet and healthy cash flow generation. The business scaled well with our existing product portfolio and has now entered the next phase of expansion by adding new growth categories such as dashcams, power banks, smartwatches, and other adjacent accessories which will improve capacity utilization and operating leverage across JV's manufacturing footprint. High-end specialty EMS business is a part of our next phase of transformational growth. We have partnered with a leading global management consulting firm for designing a comprehensive multi-year strategic roadmap to build scaled specialty high-margin EMS business, including M&A opportunities focused on aerospace, defense, automotive, medical, and industrial verticals. This initiative was focused on identifying the most attractive high-growth and high-value products in the above segments, defining a differentiated technology and capability roadmap, and creating a robust execution framework spanning capital allocation, talent development, strategic partnerships, and market expansion with the aim to accelerate Dixon's evolution into complete competitive manufacturing platform. With that, I'll conclude my remarks, and both me and Saurabh are happy to take any questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use headsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pankaj Tibrewal from Ikigai Asset Management. Please go ahead. Good evening, Atul Sir. Hope all is well at your end. All well, Pankaj. How are you? Hi, hi, Pankaj. Very good. Thank you. Thank you. Thank you, Saurabh. Just quickly two, three questions. One, first, congratulations on great cash flow conversion. Preliminary look will suggest that the cash flow has been very strong despite of earnings bit a little sluggish. Continue doing that. On 27, just wanted to get your sense on two, three. One on. I'm sorry to interrupt, Pankaj. Can you please use a handset phone? Your voice is fluctuating. I'm using the handset only. Okay. Please speak a little louder. Thank you. Yeah. On the mobile side, can you give us some color on how we are looking at the ramp-up on volumes in FY 2027? What are the other areas of growth this year we are targeting in terms of IT hardware? I remember last time you spoke about that INR 3,500 crores-INR 4,000 crores would be possible in this year, FY 2027, on the display JV, on the camera module. Can you just take us through some of the, you know, growth drivers for this year and also the Vivo JV, any thoughts on that? How should we think about from that perspective? Whether your volume, which you will probably, you know, kind of talk about, does it include Vivo? Just some color on that so that we are able to help understand on the growth side for now. Yeah, sure, Pankaj. You see, we have really focused on our balance sheet strength and in spite of a sluggish business environment, we have generated after doing a CapEx of almost INR 1,058 crores, a free cash of INR 700+ crores. The ROCE is 44.8%. Working capital operating cycle is -8 days. That way the balance sheet is very strong for triggering any kind of growth. Absolutely. As far as 27 business plan growth numbers are concerned. Yeah. Here I'm talking on mobile without Vivo. Yeah. We have closed at almost INR 32 crore million. Yeah. In the current fiscal. We feel that the overall volumes without Vivo is going to be almost similar. Okay? There is an overall decline due to increase in the memory prices and the ASP going up significantly. Okay. As far as Vivo is concerned, we are deeply engaged with the government. We feel that we are very close to it. Okay. That's where the status is. We reiterate that we feel that we're very, very close to it. If Vivo comes, what could be the volumes? It depends on the timelines. On an annualized basis, 67% of what Vivo says, and last year Vivo sold almost 35 million units. Another 20 million-22 million units can be added on an annualized basis. Okay. Okay. That's the number. Apart from that, on the feature phone side, there's a significant upside, because we're gonna be starting exports of feature phones under our subsidiary, iSMARTu, to Africa. Yes. That number will take us up to almost 50 million units. Okay. Right. Further, we are PLI 2.0 for mobiles to be rolled out. Okay. Let's see what will be the structure and format of it. We understand the focus is going to be more for global markets. If that happens, I feel that beyond Vivo and beyond iSMARTu, another 4 million-5 million units can be added. I'm giving you the overall picture and direction. Yes, yes. As far as mobile output is concerned. Absolutely. IT products, the business looks very healthy. We have created more capacities. We have deep relationships with top four brands in the country, the global brands. We feel that our revenue in this fiscal is going to be more than INR 4,000 crores. Okay. That's good to hear. In our camera module acquisition of Q-Tech, we are expanding capacity from present 70 million-80 million to almost 190 million. Last year on an annualized basis, we did a revenue of INR 1,700 crores. We are targeting a revenue of almost INR 2,500 crores in that business. As far as the display is concerned, the building is ready, the machinery is getting installed. We plan to start the trials in Q3 of this fiscal, and Q4 the commercial production is gonna start. I'm not putting in the numbers to that in the current fiscal. The other triggers of growth, the telecom business is doing extremely well. Okay. We have grown from INR 3,600 crores to INR 5,000 crores in the current fiscal. We are targeting almost INR 7,500-8,000 crores in 2026, 2027. That's another major trigger of growth. Wow! In lighting which was a laggard for us, we did almost INR 850 crores. The next year target is almost INR 1,700 crores. We expect 2x after we have formed the JV with Signify. Okay. There are further additions. Our Inventec with JV, Inventec JV is going to start generating numbers from Q3 of the current fiscal. In that, we are going to be setting up the SSD module line, which is going to further generate the numbers. These are all triggers of growth which have been planned, they are in the execution mode, Pankaj. Very nice. Just last question, on the mobile side, is it fair to say that because of the memory chip pricing going up and also your product realization going up, the top-line growth could be much higher than the volume growth which you will see? That's, that's right. That's right. We expect Pankaj the revenue growth should be at least 12%-15% higher, if not more. That was not the case for the last few years, where volume was equal to your top-line growth. Is that a fair understanding? That's once the Vivo thing comes into the system, there we are hoping that the selling prices would be better than our existing weighted average selling price of the current portfolio. Okay. Okay. That will be an aided one from a overall realization perspective. Revenue growth perspective. That's it. The margins may optically can look lower, but the revenue-wise they'll be upside on that. Okay. Fair enough. Thank you and wish you all the best. Thank you. Thank you. Thank you. Thank you. Thank you. Next question is from the line of Aditya Bhartia from Investec. Please go ahead. Aditya, your line is unmuted. Please go ahead with the question. Aditya, can you hear us? Hello. Am I audible? Yes, you are. Yes, you are audible. Please proceed. Hi, good evening, sir. Hi, Aditya. Hi, sir. My first question is on the PLI scheme coming to an end on the mobile phone side, how are the conversations with customers? Is it only the element that we were retaining, which we'll start losing out in terms of profitability? Or can there be any other hit in terms of PLI scheme going away as well? Aditya, we have five large relationships. Motorola, our relationship through Longcheer with Oppo and our other relationships. Please be rest assured that the relationships are extremely strategic, deep and anchored. We expect volume growth and a larger share of business across all these relationships. Please be rest assured on that. Obviously there is a margin pressure because the PLI going away. A part of it is getting compensated through the enhanced operational efficiency, and the balance part of it is gonna start kicking in with a backward integration piece of camera modules and display. That's the path we are pursuing, which we have shared with you earlier also. Please be rest assured the anchor relationships are very deep and there is no hit on that. Sure, sure. What we had earlier kind of discussed that 50 basis points- 30 basis points of margin impact may be there. Add to that, maybe optically how the margins may look lower on account of high realizations, but that should be the complete impact. Nothing more than that. That's the. That's right, Aditya. You have captured it absolutely. Absolutely, Aditya. Perfect. Perfect, sir. In the last conference call, you had spoken about industrial EMS wherein you had referred to hiring a senior resource. This time around you've kind of hinted about exploring different opportunities within speciality EMS. If you could give us some more details about what are the kind of opportunities within, let's say, aerospace, defense, automotive that you spoke about, how large those opportunities could be. Is it likely to be organic, inorganic? What's really the roadmap over there, if there's anything that you can disclose? Aditya, we have already taken a very senior resource at the level of President CEO, who is gonna build this business for us. We have partnered a very, very large consulting company. Five micro verticals have been identified. Their strategies are being prepared. Already on the table there are a couple of serious inorganic opportunities across the verticals that I had mentioned in my opening remarks. We have not budgeted any numbers out of these opportunities as of now in 2026, 2027, but we feel that something substantive, at least a couple of them, is gonna happen in the current fiscal. Okay. Any indication on size, sir? How large could these be? These are going to be higher margin businesses. We feel that each would be, I mean, the combined opportunities which come in are going to be at least scalable to the size of INR 3,000-INR 4,000 crores with a significantly higher operating margins. Significantly higher operating margins. Understood. Understood. My last question on exports of mobile phones. Of course with iSMARTu we are starting with the feature phones. Is there a roadmap of moving that relationship to smartphone exports as well? Besides Motorola and iSMARTu, which are the potential other customers that may get added, let's say if PLI 2.0 scheme comes in and incentivizes export opportunities? Thank you. Aditya, we are, well, we have had deep discussions with our partner and, starting with feature phones with iSMARTu, the smartphones exports is also gonna be initiated. Of course, the Motorola relationship for export is gonna get a flip after the PLI 2.0. At present, these are the two relationships which are gonna mature into exports. Beyond that, as I had shared in my opening remarks, we have already got two o rders, one from large retail chain in U.S., another one from another large retail chain in Europe for lighting. That has already triggered. Also in our telecom business, wherein we were starting manufacturing radios, microwave radios, we have got an export break. Step by step we are building. Sure. This is part of, your indication of doubling up of, lighting revenues or this could be over and above that? At present in our, to be very candid, in our AOP we have not considered these numbers. This is gonna be over and above that. Sure. Perfect. That's very helpful, sir. Thank you so much. Thanks, Aditya. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, kindly limit your questions to two p er participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead. Yeah. Thanks for the opportunity, sir. Sir, first one clarification. When you said that, the revenue for the current quarter you expect a 20%-15% growth, is it volume or are we talking about the value here? Second is, Sorry? Yeah, it's the volume growth we're talking about. Volume growth. Okay. Also the price growth. Siddhartha, both the pricing growth will also happen and the volume growth will also happen. Understood. Second thing was on the exports. How much was the exports in FY 2026? I mean, when you say flat volume growth, that does not include exports, right? The export of 4 million-5 million will be over and on top of the number which we are planning for the next year. That is subject to the policy framework of, mobile PLI 2.0. In the, in the present, in the last fiscal, the export was approximately INR 5,000. INR 5,000. INR 5,375 crores. Okay. Any color on which markets are we looking for the exports which we plan to do? In the IT segment also, I think, we have seen some increases in the impact from the memory prices and also. Do you see a potential risk of ramp-up slower being there as well as we go into the next two years? Siddharth, the export markets for mobile are largely gonna be for our anchor customer to U.S., and for our other partner company it's gonna be to the African countries. As far as the impact to the price increase or cost increase due to commodity prices in IT hardware is concerned, we have large, deep relationship. In any case, our base was very small. We are confident of touching this revenue figure of INR 4,000 crore in the current fiscal. This business, particularly, our other partnership within Inventec, is in a significant ramp-up phase. Got it, sir. last question is on the. I'm sorry to interrupt, Siddhartha. You may please rejoin the queue for more questions. Sure. Thank you. We will take our next question from the line of Indrajit Agarwal from CLSA. Please go ahead. Hi. Thank you for the opportunity. I have two questions. Post HKC, sorry, post Vivo, you would have something around 55 million, 57 million smartphones. Let's say we hit this run rate by FY 2028, at some point in FY 2028, that would imply more than 50% market share of the outsourced market in India. How do we see the smartphone volumes growth post that? We feel undoubtedly that there is a significant potential for exports. One is that. The second is we need to work upon getting a larger share of market of existing brand itself. A couple of relationships we feel there is still a potential for increasing the share of the wallet. Next is bringing in one more acquisition of a large customer. Definitely the kind of ramp over growth that Dixon has had in its mobile business is not gonna be the same level. Yeah, the growth will be there. That's what we are pursuing. Sure. You can gain market share further in the domestic market as well? We will definitely strive for it. Sure. Second, the smartphone concerns that you talked about, the near-term issues, is it more a demand issue because of rise in ASP or availability of memory chips? Due to the kind of relationships that we have as far as the mobile phones, customers and principals are concerned, we are able to ensure the supply chain smoothness. I'm not seeing any shortage due to which the business is getting impacted, but definitely there is a cost increase. There's no impact on production. Sure. The cost increase is impacting demand, not production? That's right. That's right. That's right. These are large brands. They have global relationships with the memory suppliers, and they're very deep relationships, long-term contracts. I think so supply chain, supply availability is not an issue, Indrajit. Thanks. The reason I ask is we have seen Apple and Samsung gain market share in the Indian market, while most of the Chinese brands losing. All right. That answers. Thank you so much. Thank you. Next question is from the line of Keyur Pandya from ICICI Prudential Life Insurance Company Limited. Please go ahead. Thank you for the opportunity. Sir, on the mobile volume side, so you mentioned demand, basically pricing impacting the demand. When we speak to industry people, so their point of view is that basically there is a shortage below $200 kind of phones. And their brand also prioritizing premium phones because of the shortage. Now in that backdrop, what is giving us confidence of flat volumes? Are we getting higher wallet share? And thereby we are securing our volumes or as you mentioned, there is no impact on demand, so even with the same wallet share, you are confident of flat volumes. Since this part of commentary versus the industry player was slightly different, so just wanted to get more clarity on it. In our case, what we are pursuing is a larger share of the customer's wallet. That how many new product wins we are having. With those product wins with us, we are fairly confident that we'll sustain the volumes. Am I able to answer your question? Yes. Yes. Clearly. Just one more clarification. As you have highlighted earlier, the profitability is on the per unit basis. Optically, on the percentage margin may look lower, but that is it otherwise the per unit absolute profitability remains intact. That's right. Ex of PLI. That's right. Okay. Thanks a lot and all the very best. Thank you. Thank you. Next question is from the line of Bharat Shah from BCS Capital Ideas Limited. Please go ahead. Yeah. [Non-English content] [Non-English content] [Non-English content] [Non-English content] Atulji, I'm just kind of reflecting on the past and kind of drawing a line ahead. For the longest period, we have done wonderfully well in terms of seizing the opportunity across many areas, but mobile phone has been one. We have not only grown there, but throughout we've maintained final hygiene of the balance sheet and capital efficiency facilities. I'm sorry to interrupt. Mr. Shah, your voice is fluctuating. Okay. Is this better now? Yeah. Thank you. Please proceed. I was saying that over a period of time, we have taken hold of mobile opportunity in a big way and have grown. Somewhere along the line, do you think that strategically we have allowed ourselves to depend way too much on mobile phone, where it has become very large part of the business and, therefore anything unfortunate happening is affecting our overall picture like it has happened in the last year where memory, other things, JV approval is not coming, all have combined together and, it has hurt us. Have we strategically kind of taken eyes off the ball? Bharat bhai, how do we strategize a business? We look at the opportunity pool. We look at the scalability of that opportunity. We look at de-risking after the scalability, that can we have multiple customers? Is there a possibility of entering the global markets? Is there a possibility of deepening the manufacturing? Now, in EMS services sector, the biggest opportunity pool was and is mobile. It was aligning with the government policy framework, which I think as a company we have leveraged well. Now, definitely there have been some aberrations, there have been some delays, particularly in Vivo government approval. Similar business model we have tried successfully deploying it across the other product categories. We have done it well in telecom products. Please appreciate in 2023, 2024, we were at INR 700 crore. We have grown to 3,600 and last year 5,000 and this year to 8,000. It's absolutely a similar model. We are trying to do the same thing with the IT product, where we feel that a similar trajectory of growth will happen. With the balance sheet strength and also the new foray into components is being replicating through the similar strategy. I humbly admit where possibly we have missed out is on the high margin category of industrial EMS. Correct. Yeah, that I accept. Yes, possibly I should have tried it two years back. That's where we are, Bharat bhai. Sure. Therefore, if we sum it up all that it is there in various other initiatives which we have taken and probably more will take. From the current year, where INR 47,000-INR 48,000 turnover that we have achieved, because there are too many moving parts, what kind of turnover one should believe would be there for the current year? With what kind of margin, similar, better or lower? Bharat bhai, usually I don't give guidance, let me just share with you. Without the Vivo numbers, you see this year we're closer almost INR 48,000 crores. INR 48,800 odd crores. Next year, we are targeting almost INR 56,000 crores without the Vivo numbers. Mobile volume being flat. If Vivo comes in, then it's a very major trigger. We feel that without the Vivo also, the company will keep growing at almost 15%-17%. With a better, same or lower margin in the current year compared to last year? The margin profile will be slightly under pressure this year because the PLI has gone off, and there is a lag in the margin accretion happening due to component foray. Finally, when the component play is completely deployed, there will be a margin expansion from last year's number by almost 40 basis points, 50 basis points. Overall profitability will rise. Yes. Rather than margin, overall, profit pool for the company in the current case will rise compared to last year? Yeah, absolute profitability will rise. Yeah, absolute profitability will rise. Once the component play comes in, sir, then there will be a significant margin expansion, which will largely get played out in 2027, 2028. Camera modules will happen in H2, where it happen with, we are deepening the level of manufacturing. Yeah, display part, which is larger part of the backward integration strategy, will start playing out in 2027, 2028. Sure. Not a question, but just a point I wanted to put in. I'm sorry to interrupt. Hello, Bharat sir, I'm very sorry. Just a point I'm putting. I'm putting just a point, not a question. Don't worry. You see, I mean, our capability, core capability is a hardcore manufacturing at efficient cost. We have done a wonderful job in that cash flow, balance sheet, ROC, ROE, everything. I think manufacturing, industry, automobile, defense related, there are multiple opportunities, I think, which once we widen the horizon, I think opportunity pool can widen materially. That is all that I wanted to put in. Thank you, Lall, Atul-ji. We are absolutely aligned with you. Just to respond to you, there are significant adjacencies in our existing forays also. For example, the display one is getting such positive traction from the automotive industry. There are many, many adjacencies. Also what I had mentioned responding to the question by Aditya that, our foray into industrial EMS, please be rest assured, will be a reality. Sure. Thank you, Atul-ji. All the very best. Thank you so much. Thanks. Thank you, sir. Thank you. Thank you. Next question is from the line of Achal Lohade from Nuvama Institutional Equities. Please go ahead. Yeah, good evening, sir. Thank you for the opportunity. First question, just a clarification. The INR 32 million included the exports of INR 5.5 million, right? No, no, no. This is not including exports. Would you be able to quantify for FY 2026? What is the export number, sir? INR 33 million, yeah, is what we did. 26, 27 number. INR 32 million. Your question is on 26, 27 numbers? For FY 2026. For FY 2026. We did 33 million smartphones, and that includes the smartphone exports. Yeah. That includes exports. Including exports. When you're guiding for flat volume, that also in a similar context, total basis, or that was just for the domestic? That export volumes can be over and above this INR 33 million. Yeah. That is largely domestic. Yeah. What was the quantum for export in FY 2026, sir? If you could call out that. Around. Around INR 4 million. INR 4.5 million or something. Understood. The second question I had was with respect to PLI. If you could clarify, what is the PLI income we booked on a gross and net basis for FY 2026? How much did we receive? How much is outstanding as of 31st March 2026? Yeah. The first part of the question, the total PLI income which has been booked across the four PLI schemes that we are a beneficiary of, the total income is around INR 360 odd crores. Okay. The overall across this four PLI, the overall receivable balance will be closer to INR 1,380 odd crores. This 360 is net. I'm sorry to interrupt. Achal. PLI, right? Just a clarification, ma'am. Please. Just a clarification. I'm not asking any new question, just a clarification. Is this net PLI numbers, sorry? What is the INR 60 crores? I think there is gross and there is pass-through, right? This is a net PLI recognized. INR 960 would be the net. INR 960 is the pass on, difference is the, you know, the net number. Understood. Got it. Thank you. I'll fall back in the queue. Thank you so much. Thank you. Next question is from the line of Ashutosh Kumar Jha from Balyasny Asset Management. Please go ahead. Hi. Hi, Atul Sir. Hi, Saurabh. Thank you for taking my question. Yeah. Just two questions. One is a bookkeeping question. On the mobile and EMS division, can you just break out the hearables, wearables, telecom and new tech part of it, if possible? We don't split these numbers, please, if you don't mind. Understood, sir. No worries. The second was around your earlier comment on the ASP increases that are happening in the industry. As far as Dixon is concerned, can you just clarify the accounting on what happens when, say, ASP goes up due to memory issues? Then how does it impact our revenue and how does it exactly impact our EBITDA? Does EBITDA per unit remain same or EBITDA profitability remains the same? Yeah. Basically, the revenue is a function of the bill of material, the cost of goods sold, plus our conversion charge. If the bill of material or the cost of goods sold up, goes up because of increase in the memory prices, accordingly, the revenue will go up. What our understanding with the customer is that we get an EBITDA per unit depending on the complexity which goes into the smartphone, with various models of smartphones. Yes, if the revenue goes up, the margin can optically look lower. We get a per unit conversion charge. Understood, sir. Thank you. These are my questions. Thank you. Next question is from the line of Santhosh Seshadri from Avendus Capital. Please go ahead. Hi, sir. Good evening. Thanks for taking up my questions. My first question is on the volume guidance for the full year. Correct me if I'm wrong, sir. Based on the FY, you know, FY 2026 volumes of 32 million-33 million units, our run rate for full Q 2026 implies 5 million units approximately. If we pattern the guided volume growth of like 12%-16% sequentially, and extrapolate that to second quarter of FY 2027 as well, we are arriving at roughly 12 million-13 million units for first half and 20 million units for second half. Could you explain, you know, is this largely driven by any just deep recovery in the second half? Is it driven by any customer ramps or any market share gains? Or is it just a broader demand recovery? First of all, your quarter four numbers are closer to 5.6 million, so it's not 5 million. Then we are saying on this we expect a higher double-digit teen growth in terms of volumes. We have that numbers in mind, but we don't want to share the specific number. Higher double-digit teen growth I'm talking about. Then on top of it, we are talking about a 12%-15% pricing growth. There will be a significant growth in terms of mobile revenues overall on account of both pricing and volumes. Of course, you can't just multiply the quarter one numbers into four because there's always a quarter two is generally the best quarter for us. Also the exports which we mentioned also will start happening from Q2, which we mentioned in our opening remarks. We feel confident that excluding Vivo, we will be looking at similar volumes. Exports can potentially add some more volumes to it. The Vivo volumes, as and when the approval comes in, it'll have a proportionate impact for the balance part of the year. Thank you. My second question is on the display business. You know, could you provide some more color on the you know, ramp up schedule and how should we think about the margins and the utilization for FY 2026 and FY 2027 and FY 2028? In the phase one, we are setting up a capacity of 24 million mobile displays annually and 2.4 million of automotive and IT product display. The first line being installed is for IT products and automotive display, for which the trial is going to start in Q3 of current fiscal, and the commercial production is going to start in Q4 of the current fiscal. Mobile display, the trial and the commercial production is going to start in Q4 of the current fiscal. As I had shared, finally, the capacity build up from mobile over next two years is going to be from 24 million to almost 50 million, 55 million. In the final picture of this business, the revenue target, once we start achieving 80% - 90% of the capacity utilization, the revenue generation is going to be almost INR 5,500 t o INR 6,000 crores with a double-digit margin. Thank you very much, sir. Thank you. Next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead. Hello, sir. Just to follow up on the last question. Once the display business will ramp up, so fair to assume the margin could be in the mid to high teens? Sorry, the question is not clear. I'm not able to understand. We're not able to understand. Please, can you repeat? Hello. Was it. No, we, please can you repeat the question, Keshav Lahoti? Hello. Am I audible? Yeah, you're audible. We could not understand your question. Can you repeat it? Yeah. My question is, once the display business will ramp up, is it fair to assume the margin will be mid to high teens? We feel that it should be double-digit margin. Yeah, it should be in mid-teens. Yeah. Yeah. That's your understanding is right. Understood. Got it. Let's say, what about if we expect FY 2028 will be a full year of distribution, so initially it will be start with lower and possibly it will ramp up to mid to high teens in next two to three years. That is how we should look at the business, right? That's right. Yeah, sir. Got it. Thank you. That is it. Thank you. Next question is from the line of Rahul Agarwal from Ikigai Asset. Please go ahead. Hi, sir. Very good evening, Atul -ji and Saurabh. Just two questions. Two questions are on CapEx. Clearly we are, you know, going ahead with most of the capacity expansion. Even FY 2026, you've ended at INR 1,000 crore. Sir, next year, FY 2027, how do we look at, you know, the CapEx budget and which segments take the largest share? That is question one. Question two, just from a top-down perspective for Dixon, both from an input cost inflation perspective and, you know, Forex rate, which is INR US dollars, how does it impact Dixon? Positive or negative? Is there a time lag between what we should actually anticipate, once, you know, it's a 100% pass-through business is what I understand. Could you just, you know, put some thoughts around, you know, these three points will really help to understand this all better. Thank you so much. Rahul, on the CapEx side, we feel that the CapEx number, well, a lot of CapEx in our existing business has already been front-ended. The CapEx allocation is largely going to be on three things. One, our display capacity. Second, our expansion of the IT business. Third is expansion of our camera module capacity and deepening of manufacturing. As far as the absolute number is concerned, this will be in the similar range, and the balance sheet and the cash accruals are adequate to support this expansion. As far as the commodity price increase and the currency fluctuation is concerned, in our EMS business is an absolute pass-through. There is no currency risk and there is no time lag. As far as our ODM business is concerned, which is the business of our appliances, that is washing machine, refrigerator, LED television, and lighting, that's wherein we do a product sale, and we have to pass on that cost increase to the customer. Yeah, we are pushing that cost increase to the customer. Sometimes there can be a lag of two months. Largely, we are able to pass it on to the customer. That's where it is. Got it, sir. Thank you so much, and wish you all the best for FY 2027. Thank you. Thank you. Next question is from the line of Saumil Mehta from Kotak AMC. Please go ahead. Yeah, thanks for the opportunity. One question from my side. In terms of the industrial EMS opportunity, is it fair to assume that in terms of the opportunity size, it is maybe as big or bigger than the IT hardware? Also from a margin perspective, it will be better margins with less dependency on government PLIs, et cetera. Would that be a fair assumption? Yeah, you are absolutely right. Sir, not so much. Okay. Not so, Saumil, in terms of revenues, IT hardware can be a bit bigger opportunity, but margin profiles definitely in an EMS, high margin EMS business, specialty EMS business will be much, much higher. Definitely, yes, there is no PLI there in that particular segment. Sure. My second just a bookkeeping question of the INR 360 crore of net PLI what you have booked across five entities. Would it be possible to give just for the mobile and EMS division? Yeah. just Yeah, so that is closer to almost to 250 or closer. 250. Last question now. With various things on the plate, is it fair to assume that our earlier thoughts of putting up a display fab unit is much in the less priority versus some of the other businesses what we are talking about? Yeah, that's right. That's right. Sure, sir. Thank you so much. All the best for subsequent quarters. Thank you so much. Thank you. Next question is from the line of Pulkit Patni from Goldman Sachs. Please go ahead. Sir, thank you for taking my questions. I have a couple of them. One is you spoke about server opportunities at looking at data center servers. Could you highlight, like, what stage of discussion are we in? What is the kind of work that we could get over the next, say, 12, 18 months here? Or is it very, very initial stage? Well, we are mapping this opportunity and dialogue with our partner has already started. We feel that the government policy framework for local manufacturing of servers for serving the Indian data center requirement is going to get a significant flip. The contours are being worked out. Exact numbers and opportunity, in terms of numbers, I'm not in a position to share. I think it's early for that. Sure, sir. This is clear. My second question is, I'm referring to notes to accounts, 11, which talks about 11 odd, INR 100 odd crore, which is receivable from PLI and INR 730 odd crore that is payable. Could you highlight the reason why this is, like, mentioned in the note? Is it something where government's not given approval? Like, if you could just highlight, you know, what's the status there in terms of both our receivable and our payout to the customer. Yeah. Basically, as part of the PLI scheme, there was a provision under the guideline that, and there was a budget allocated to it, for domestic companies, five domestic companies and five foreign companies. There was a provision of the guideline that if some company underperforms, those five domestic companies underperform, there, to the extent that there is an overperformance by another company, and in this case, of course, it's Dixon, the incentive will be given to the extent of underperformance by other companies. We have been given all the incentives by the government, till the ceiling revenues, which was defined per applicant or per company. The overflow money is still pending, which we are in discussions with the government. Similar cases would be there for foreign companies as well, the vendors of large global brands. That thing is being pursued with the government. The auditors felt right that there should be a note to it, and that's the reason it has been mentioned. Okay. Very clear. Thank you, Saurabh. Thank you. Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference back to the management for closing comments. Thank you so much, everyone, for being with us today evening. Thanks a lot. Have a great day. Thank you so much. Thank you. Thank you. On behalf of DAM Capital Advisors Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.