| Net Debt | ₹427 CrUp from ₹406 Cr QoQ |
|---|---|
| Market Cap | ₹7,834.87 CrHardware Technology |
| Revenue TTM | ₹1,991.26 CrOperating Revenue |
| P/E TTM | 55.01Sector PE: 42.13 |
Key highlights
- Consolidated revenue for Q2 FY27 reached ₹624.8 crore, up 42% year-on-year
- Full-year FY27 revenue growth guidance increased to 40% from the previous 30% outlook
- Gross margins expanded by 515 basis points YoY to 25.1% in the September quarter
- Average Selling Price (ASP) for laptops rose to ₹31,000, supported by an 11% realisation gain
- Inventory levels remain elevated as management strategically stocks components ahead of anticipated memory shortages through 2030
The 'AI Tax' Reshapes Laptop Pricing Dynamics
Management highlighted a permanent reset in electronic hardware pricing, driven by AI investments monopolising global memory capacity from suppliers like Micron and SK Hynix. New PC prices in India have surged nearly 80%, moving the 'sweet spot' from ₹35,000–40,000 to approximately ₹65,000–72,000. This inflationary trend has significantly widened the value gap for GNG’s refurbished products.
While a new computer cost ₹100 earlier and a refurb sold for ₹30, the new equivalent now costs ₹180 while the refurb sells for approximately ₹54, doubling the absolute savings for consumers and strengthening GNG’s pricing power.
Operational Milestones and Channel Expansion
- India business grew 45% YoY, while international markets rose by approximately 40%
- Laptops continue to dominate the product mix, accounting for 78–80% of total volumes
- Total customer touchpoints expanded to 5,542 across 55 countries in Q2 FY27
- Opened the first exclusive Electronics Bazaar store in Jaipur to target SMB customers
- Enrolled 152 partners in the EB Elite program to deepen regional distribution
- Launched a major marketing campaign with Gaurav Chaudhary (Tech Guruji) on 31 October 2026
Supply Constraints and Strategic Stocking
The simple reading is that the large part of the world's memory capacity is going to AI and the personal computer is further back in the queue. This makes the refurbished proposition even stronger.
Financial Health and Updated Guidance
GNG Electronics raised its FY27 revenue growth guidance to 40%, up from the 25% projected in May 2026. Management also expects PAT margins to expand by 150 basis points over FY26 levels. Despite strong top-line growth, net debt increased to ₹427 crore as the company strategically holds higher inventory to mitigate supply chain risks.
The effective tax rate for H1 FY27 jumped to 18% from 10.6% in the previous year due to the outperformance of the domestic business; however, the company has guided for a full-year tax rate between 14% and 15%.
| Date | Announcement | Amount |
|---|---|---|
| 30 Jul 2026 | Q1 FY27 Consolidated Financial Results (Revenue from Operations)Source: stockscans.in | ₹412.46 Cr |
| 05 May 2026 | Management Guidance: Guided FY27 revenue growth of ~25% and at least 50 bps PAT margin expansionSource: indiaadvantage.co.in | – |
| 05 May 2026 | Q4 FY26 Consolidated Financial Results (Revenue from Operations)Source: scanx.trade | ₹651.70 Cr |
| 05 Feb 2026 | Management Guidance: Raised FY26 revenue growth guidance to 28%–30% and EBITDA margin expansion to 150–200 bpsSource: electronicsbazaar.com | – |
| 05 Feb 2026 | Q3 FY26 Consolidated Financial Results (Revenue from Operations)Source: stockscans.in | ₹487.83 Cr |
What to watch next
- Insider trading window to reopen on 05 November 2026 post-results declaration
- Operationalisation of the new 2,238 sq. meter refurbishment facility in Sharjah, UAE
- Progress of the 60,000-unit desktop procurement order for a US-based banking client
“Our inventory continues to be elevated because the opportunity itself is presenting us in this manner, and an elevated inventory is more beneficial from a business perspective for at least the next two quarters.”
| Share price | ₹687.2 |
|---|---|
| Market capitalisation | ₹7,834.87 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) | 55.01×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.
NSE filing by GNG Electronics Limited announcing the unaudited financial results and earning call transcript for the quarter ended September 30, 2026. Market figures from a third-party data provider.
