| Market Cap | ₹7,847.41 CrHardware Tech |
|---|---|
| P/E TTM | 55.1Sector PE 42.13 |
| RSI | 44.42Neutral Zone |
| 1Yr Price Change | 105.49%High Performer |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 625 | 412 | 440 |
| Other Income | 0.8 | 3.5 | 0.2 |
| Total Income | 626 | 416 | 440 |
| Profit Before Tax | 68.1 | 35.7 | 36.1 |
| Net Profit | 56.4 | 28.9 | 32.7 |
| Operating Margin | 10.9% | 8.6% | 8.2% |
| Net Profit QoQ | +95.2% | ||
| Net Profit YoY | +72.5% | ||
| Adj. Profit QoQ | +109.0% | ||
| Adj. Profit YoY | +87.5% | ||
Key highlights
- Net profit grew by 72.5% year-on-year to ₹56.4 crore in Q2 FY27
- Revenue from operations reached ₹625 crore, marking a 42% increase from the same period last year
- Operating margins expanded to 10.9% compared to 8.2% in the previous year's second quarter
- Company to avail ₹60.15 crore in additional working capital facilities under the ECLGS 5.0 scheme
- Board approved corporate guarantees of AED 115 million in favour of UAE-based lenders for its subsidiary
Sequential Growth and Margin Expansion
GNG Electronics demonstrated significant operating leverage during the second quarter, with net profit nearly doubling on a sequential basis. The profit after tax rose to ₹56.4 crore from ₹28.9 crore in the June 2026 quarter, a 95.2% increase. This performance was driven by a rise in revenue to ₹625 crore and a notable improvement in operating margins, which climbed to 10.9%.
The improvement aligns with management's earlier guidance from July 2026, which targeted a PAT margin expansion of 75 to 100 basis points for the full fiscal year.
Strategic Credit Facilities and UAE Subsidiary Support
- Enhanced corporate guarantee to AED 30 million for Abu Dhabi Islamic Bank PJSC to support subsidiary financing
- Guarantee limit increased to AED 25 million in favour of The National Bank of Ras Al Khaimah PJSC
- New corporate guarantee of AED 30 million issued for the National Bank of Fujairah PJSC
- Approval to avail ₹39.95 crore additional term loan from HDFC Bank under the ECLGS 5.0 scheme
- Incremental credit lines of ₹9.80 crore and ₹10.40 crore approved from Kotak Mahindra and ICICI Bank respectively
Expanding Footprint in Refurbished Hardware
The company continues to scale its material subsidiary, Electronics Bazaar FZC, which operates in the refurbished ICT hardware space. This segment benefits from short turnaround transactions rather than long-term order books. To support this growth, the subsidiary executed a 25-year lease on October 14, 2026, for a 2,238.77 square meter warehousing and refurbishment facility in the SAIF Zone, Sharjah.
This expansion is expected to bolster the company's distribution capacity in international markets as it works toward its upgraded 30% year-on-year revenue growth guidance for FY27.
Market Valuation and Ownership Structure
GNG Electronics is currently trading with a TTM price-to-earnings ratio of 55.1, positioned above the industry average of 48.07. The stock has delivered a return of over 105% over the past year, reflecting strong market momentum despite a slight sequential dip in promoter holding, which stands at 71.77%. Institutional participation remains stable with a total holding of 10.66%, including a 5.54% stake by Foreign Institutional Investors.
The company's Piotroski score of 5 indicates a stable financial position as it pursues aggressive regional expansion in the UAE.
| Date | Announcement | Amount |
|---|---|---|
| 30 Jul 2026 | Q1 FY27 consolidated net profit (Revenue from operations: Rs 412.46 crore)Source: stockgro.club | ₹28.93 Cr |
| 05 May 2026 | FY27 management guidance of ~25% YoY revenue growth and >=50 bps PAT margin expansionSource: 5paisa.com | – |
| 05 May 2026 | Q4 FY26 consolidated net profit (Revenue from operations: Rs 651.66 crore)Source: scanx.trade | ₹42.15 Cr |
| 05 Feb 2026 | FY26 management guidance upgraded to 28%–30% YoY revenue growthSource: kotakneo.com | – |
| 05 Feb 2026 | Q3 FY26 consolidated net profit (Revenue from operations: Rs 487.22 crore)Source: stockscans.in | ₹38.69 Cr |
What to watch next
- Operational integration of the new Sharjah warehousing facility following the October 2026 lease execution
- Utilization of the ₹60.15 crore ECLGS 5.0 facilities to support working capital requirements
- Performance tracking against the target 75-100 bps PAT margin expansion for the full year
- Q3 FY27 financial results announcement expected in February 2027
| Share price | ₹688.3 |
|---|---|
| Market capitalisation | ₹7,847.41 Cr |
| Revenue (annual) | ₹1,891.08 Cr |
| Net profit (annual) | ₹131.64 Cr |
| Revenue (latest quarter) | ₹412.46 Cr-36.71% vs previous quarter |
| Net profit (latest quarter) | ₹28.93 Cr-31.36% vs previous quarter |
| P/E (TTM) | 55.1×Sector 42.13× |
| Promoter holding | 71.77%-3.00% QoQ |
| FII holding | 5.54%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 Ltd announcing the unaudited standalone and consolidated financial results for Q2 FY27. Market figures from a third-party data provider.
