Responding to a question on the potential impact of increased competition on pricing and margins, Gupta dispelled concerns, outlining a clear strategy for margin expansion.

“We are working on margin expansion. That will happen largely on account of backward integration strategy. Our foray into displays, the camera module acquisition, mechanicals and lithium-ion batteries will contribute to a decent margin expansion.”

He highlighted a strategy integrating operating leverage, exports and margins.

“If you are manufacturing both export and domestic volumes in the same facility, it leads to operating leverage. So, it should always have a positive impact on the margins along with the backward integration play,” he explained.

On the company’s margins expanding from the current level of 3.8% to 4.5% by FY28, he said, “There can be a 100-bps margin expansion, but that could largely reflect in 2027-28 when all these backward integration plays for us get ramped up and stabilised.”

Gupta also provided an update on the status of its much-anticipated joint ventures (JVs) with Chinese partners, which are awaiting government approval.

He confirmed that two key JVs, one with HKC for displays and another with Vivo for smartphone manufacturing, are “progressing well with the government” and are in the “last leg” of the approval process.

“We are expecting it very soon, in the next couple of weeks or maybe a month or so,” he said.

Shares of Dixon Technologies settled at Rs 15,697 apiece, up 1.8%, on the NSE, compared to the benchmark Nifty50 closing 0.4% higher at 26,013.45.