JM Financial, JPMorgan highlight India's smartphone production incentive limits; Dixon falls

Syrma SGS Technology

24/08/2026 06:05

** Govt on Friday notified smartphone manufacturing incentive scheme with outlay of 6.25 bln rupees
** Shares of India's Dixon Technologies DIXO.NS fall 2.1% to 14,541 rupees
** Other potential beneficiaries: Kaynes Technology KAYN.NS, Amber Enterprises AMBE.NS, Syrma SGS SYRM.NS up 0.5%-1.3%
** JM Financial says scheme is export-focused and will make large players globally competitive
** Adds, scheme sets steep brand-wise targets which may shrink overall eligible pie
** JPMorgan says benefit of scheme may be limited to only Dixon's top customers, due to eligibility criteria of 100 billion rupees ($1.05 billion) turnover in FY26
** Says, Dixon is eligible for additional incentives since it is scaling up manufacturing of camera and display modules
** Brokerage says the quantum of earnings upgrades for DIXO is still unclear, as it is dependent on export volumes and negotiations with brands on incentive sharing
     
($1 = 95.6700 Indian rupees)

(Reporting by Abhirami G in Bengaluru)
((abhirami.g@thomsonreuters.com))