| Revenue FY26 | ₹1,891 Cr33.4% YoY Growth |
|---|---|
| PAT FY26 | ₹132 Cr91.8% YoY Growth |
| PEG Ratio | 0.21TTM Basis |
| Market Cap | ₹4,918 CrMid-cap |
Key highlights
- Annual revenue grew 33.44% YoY to ₹1,891.08 crore, exceeding initial management guidance.
- Net Profit (PAT) surged by 91.8% YoY to ₹132.02 crore, supported by a 185.8% jump in Q4 profits.
- EBITDA margins expanded by 166 basis points to 10.6% for the full year due to positive operating leverage.
- India consumption revenue witnessed robust 80% growth, reflecting deep domestic market penetration.
- Management announced a scale-up plan to reach a refurbishment capacity of 150,000 units per month.
- Strategic inventory of ₹740 crore was maintained to mitigate global price escalations in SSDs and RAM.
Financial Performance and Operating Leverage
GNG Electronics demonstrated significant operating leverage in FY26, with profitability scaling at nearly triple the rate of revenue growth. The company reported a consolidated revenue of ₹1,891.08 crore, while Net Profit reached ₹132.02 crore. This performance was bolstered by a strong final quarter, where Q4 revenue surged 43% year-on-year.
The blended Average Selling Price (ASP) remained firm at approximately ₹26,000 across 7.27 lakh units sold. Despite rising component costs, the company improved its EBITDA margin to 10.6%, driven by better realizations and strategic procurement of critical components like SSDs and processors.
Management Outlook and Guidance
Looking ahead to FY27, management has issued a confident guidance of 25% revenue growth and an additional 50 basis points expansion in PAT margins. The company is focusing on a massive capacity expansion, aiming to process 150,000 units per month to meet the growing demand in the circular economy. A primary growth lever is the newly launched affordability program, which offers laptops with EMI options starting at ₹1,000 per month.
While inventory levels remain elevated at ₹740 crore, the leadership views this as a strategic buffer against global supply chain volatility and component price hikes.
Business Overview and Sector Dynamics
GNG Electronics operates in the computer hardware segment, specifically focusing on the refurbishment and sale of IT equipment. The company addresses a significant gap in the Indian PC market, where high prices for new units leave millions of potential users underserved. By providing enterprise-grade hardware at accessible price points, GNG is capturing demand from retail, SME, and educational sectors.
Currently, the industry is navigating extreme shortages of SSDs and RAM; however, GNG's business model allows it to capitalize on these trends by offering value-driven alternatives to high-priced new hardware.
What to Watch
- Progress on reaching the target refurbishment capacity of 150,000 units per month.
- Management's ability to reduce inventory levels and improve operating cash flow, which was negative in FY26.
- Sustainability of current margin expansion if global component prices stabilize or decline.
- Execution and adoption rates of the ₹1,000/month EMI affordability program in the retail segment.
Strategic Execution
Management stated they by far exceeded both the original guidance... as well as the revised guidance for both growth and profitability.
| Share price | ₹431.4 |
|---|---|
| Market capitalisation | ₹4,918.46 Cr |
| Revenue (annual) | ₹1,891.08 Cr |
| Net profit (annual) | ₹132.02 Cr |
| Revenue (latest quarter) | ₹651.66 Cr+33.75% vs previous quarter |
| Net profit (latest quarter) | ₹42.15 Cr+8.95% vs previous quarter |
| P/E (TTM) | 37.26×Sector 28.6× |
| Promoter holding | 78.71%0.00% QoQ |
| FII holding | 2.78%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by GNG Electronics Limited announcing its audited financial results for the quarter and year ended March 31, 2026. Market figures from a third-party data provider.
