Shares of Dixon Technologies (India) gained over 1% to Rs 11,738 on the BSE on Wednesday after its subsidiary, Dixon Electroconnect, entered into an agreement with Gemtek Technology to form a joint venture in India for manufacturing and supplying optical transceivers and other telecom products.
According to the company, the proposed venture will manufacture and supply Optical Transceiver-SFP (Small Form-Factor Pluggable), BOSA (Bidirectional Optical Subassembly), and other telecom products that the parties mutually agree upon from time to time.
The proposed transaction will use a mutually agreed structure where Dixon Technologies will hold 60% of Dixon Electroconnect's total paid-up share capital, while Gemtek will hold the remaining 40% stake upon completion.
The transaction remains subject to executing definitive agreements, fulfilling customary conditions precedent, and receiving applicable statutory, regulatory and other required approvals.
In its statement, Dixon said the proposed joint venture would focus on manufacturing optical transceivers, BOSA modules and networking equipment. The company stated that the partnership combines Dixon's manufacturing capabilities with Gemtek's experience in optical modules, telecom infrastructure and networking technologies.
Gemtek, in its statement, said the joint venture is part of its expansion in optical communication and aims to address demand related to high-speed networks and data centre infrastructure.
The company also stated that Dixon Electroconnect's participation as a beneficiary under the ECMS is expected to support the proposed venture. The partnership is intended to operate in segments linked to data centres, telecom infrastructure, optical connectivity, cloud computing, edge computing and networking applications.
Dixon Technologies reported a consolidated net profit at Rs 256 crore in the March-ended quarter versus Rs 401 crore in the year-ago period, implying a 36% fall. The profit after tax (PAT) was attributable to the company's owners. The company's revenue from operations in Q4FY26 was up 2% to Rs 10,511 crore versus Rs 10,293 crore posted in the corresponding quarter of the previous financial year.
Meanwhile, the company's total income grew 3% year-on-year to Rs 10,595 crore versus Rs 10,304 crore in Q4FY25. It included other income of Rs 84 crore compared to Rs 11 crore in the year-ago period.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
