EBGNG - GNG Electronics
📢 Recent Corporate Announcements
GNG Electronics has entered into strategic distribution partnerships with Ingram Micro India and Supertron Electronics to scale its refurbished ICT business nationwide. These agreements aim to leverage established pan-India networks to penetrate Tier 1, 2, and 3 markets with the 'Electronics Bazaar' brand. The company, which refurbished approximately 5.9 lakh devices in FY25, seeks to institutionalize the fragmented refurbished market through organized channel access. This move is expected to significantly enhance distribution velocity and enterprise penetration for its portfolio of 5,840 SKUs.
- Strategic partnerships signed with Ingram Micro India and Supertron Electronics for nationwide distribution.
- Aims to expand reach across Tier 1, 2, and 3 markets for the 'Electronics Bazaar' brand.
- Company refurbished approximately 5.9 lakh devices in FY25 with a portfolio of 5,840 SKUs.
- Focus on formalizing the fragmented refurbished ICT segment through structured, warranty-backed systems.
- Leverages rising enterprise demand for cost-efficient computing alternatives amid rising new component costs.
GNG Electronics reported a strong Q3 FY26 with consolidated revenue growing 40.3% YoY to ₹487.2 crore, while PAT more than doubled to ₹38.7 crore. EBITDA margins expanded by 200 bps to 11.2%, reflecting significant operating leverage as the business scales. Management highlighted a favorable macro environment where rising memory prices (DDR5 8GB RAM up 270%) and a 20% hike in new PC prices are shifting demand toward refurbished alternatives. The company has expanded its global footprint to 44 countries and increased its workforce to 1,900 employees to support this growth.
- Consolidated Revenue grew 40.3% YoY to ₹4,872.2 million in Q3 FY26.
- PAT more than doubled to ₹386.9 million with margins improving from 5.5% to 7.9% YoY.
- Global reach expanded to 44 countries supported by 4,745 customer touchpoints.
- DDR5 8GB RAM prices surged 270% between Oct 2025 and Jan 2026, driving demand for refurbished PCs.
- Employee strength increased to 1,900, including the addition of over 600 engineers.
GNG Electronics reported a stellar Q3 FY26 with revenue growing 40.3% YoY to ₹487.2 Cr, driven by strong demand for refurbished ICT devices. Profitability saw significant expansion as PAT doubled to ₹38.7 Cr, while EBITDA margins improved by 199 bps to 11.2%. The company is benefiting from a structural shift where rising new PC costs and supply constraints are pushing customers toward refurbished enterprise-grade alternatives. For the nine-month period, the company has already achieved a PAT of ₹89.9 Cr, representing a 65.5% YoY growth.
- Revenue from operations increased by 40.3% YoY to ₹487.2 Cr in Q3 FY26.
- EBITDA grew 70.5% YoY to ₹54.6 Cr with margins expanding 199 bps to 11.2%.
- Net Profit (PAT) surged 102.8% YoY to ₹38.7 Cr, doubling from ₹19.1 Cr in the previous year.
- 9M FY26 performance remains strong with revenue at ₹1,239.4 Cr and PAT at ₹89.9 Cr.
- Management highlights AI adoption and supply constraints in new hardware as key growth drivers for refurbished devices.
GNG Electronics Limited has released the audio recording of its earnings conference call held on February 05, 2026. The call focused on the company's financial and operational performance for the third quarter ended December 31, 2025. This filing is a standard regulatory requirement under SEBI (LODR) Regulations, 2015, to ensure equal access to information for all investors. Shareholders can now access management's detailed commentary and responses to analyst queries via the company's website.
- Audio recording of the Q3 FY26 earnings call held on February 05, 2026, is now live.
- The call pertains to the financial results for the quarter ended December 31, 2025.
- Disclosure made in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements.
- Direct access link provided for investor transparency: https://www.electronicsbazaar.com/media/investor/i/Earnings_Call_Recording_Q3_FY26.mp3
GNG Electronics reported a stellar performance for Q3 FY26, with consolidated revenue growing 40.3% YoY to ₹487.2 crore. Profitability saw a massive jump as PAT surged 102.8% YoY to ₹38.7 crore, supported by EBITDA margin expansion from 9.2% to 11.2%. The company is benefiting from a structural shift toward refurbished enterprise-grade devices due to rising costs of new hardware and AI-driven demand. For the nine-month period (9M FY26), revenue reached ₹1,239.4 crore with a PAT of ₹89.9 crore, reflecting strong operational execution.
- Q3 FY26 Revenue grew 40.3% YoY to ₹487.2 Cr, while 9M FY26 revenue rose 29.7% to ₹1,239.4 Cr.
- Net Profit (PAT) for the quarter more than doubled, increasing 102.8% YoY to ₹38.7 Cr.
- EBITDA margins improved significantly by 199 bps YoY to 11.2% in Q3 FY26.
- The company maintains a global footprint across 44 countries with refurbishment facilities in India, UAE, and USA.
- Basic EPS for Q3 FY26 stood at ₹3.34 compared to ₹1.75 in the same quarter last year.
GNG Electronics reported a stellar performance for Q3 FY26, with standalone revenue growing 53.6% YoY to ₹2,270.35 million. Net profit (PAT) saw a massive jump of 259% YoY, reaching ₹98.48 million compared to ₹27.43 million in the same quarter last year. The company also approved significant enhancements to corporate guarantees totaling AED 65 million for its Dubai-based subsidiary, Electronics Bazaar (FZC), to secure higher banking facilities. This suggests aggressive expansion or increased operational scale in its international ICT device business.
- Standalone Revenue from operations rose 53.6% YoY to ₹2,270.35 million in Q3 FY26.
- Net Profit (PAT) increased by 259% YoY to ₹98.48 million from ₹27.43 million.
- 9M FY26 PAT stands at ₹277.94 million, already exceeding the full FY25 PAT of ₹186.21 million.
- Approved issuance and enhancement of corporate guarantees worth AED 65 million across four banks for its Dubai subsidiary.
- Earnings Per Share (EPS) for the quarter improved significantly to ₹0.86 from ₹0.24 YoY.
GNG Electronics reported a strong performance for the quarter ended December 31, 2025, with standalone revenue growing 53.6% YoY to ₹2,270.35 million. Net profit (PAT) saw a significant jump of 259% YoY, reaching ₹98.48 million compared to ₹27.43 million in the previous year's quarter. The company also significantly increased corporate guarantees for its Dubai-based subsidiary, Electronics Bazaar (FZC), totaling an additional AED 38 million across four banks to support financing facilities. This expansion in credit lines suggests aggressive growth plans for its international operations.
- Standalone Revenue from operations increased 53.6% YoY to ₹2,270.35 million in Q3 FY26.
- Standalone Net Profit (PAT) surged 259% YoY to ₹98.48 million from ₹27.43 million.
- Profit Before Tax (PBT) grew nearly 3x to ₹133.89 million compared to ₹46.04 million in the year-ago period.
- Enhanced corporate guarantees for subsidiary Electronics Bazaar (FZC) by AED 38 million across Commercial Bank of Dubai, RAKBANK, Emirates Islamic Bank, and DBS.
- Earnings Per Share (EPS) improved significantly to ₹0.86 from ₹0.24 in Q3 FY25.
GNG Electronics Limited has scheduled its earnings conference call for Q3FY26 on Thursday, February 05, 2026, at 06:00 PM IST. The call will follow the Board of Directors meeting held earlier that day to approve the financial results. Managing Director Sharad Khandelwal and Director Ajay Pancholi will represent the company to discuss performance and outlook. This call is a key opportunity for investors to understand the company's growth trajectory and operational efficiency for the quarter ending December 2025.
- Earnings conference call scheduled for February 05, 2026, at 18:00 IST to discuss Q3FY26 results.
- Senior management including MD Sharad Khandelwal and Director Ajay Pancholi will be present.
- The call is facilitated by Motilal Oswal Financial Services with international dial-in options for HK, Singapore, UK, and USA.
- The event follows the Board meeting scheduled on the same day for financial result approval.
GNG Electronics Limited has successfully passed four key resolutions via postal ballot with significant majorities. Shareholders approved the ratification of the Electronics Bazaar ESOP Scheme 2024 and its extension to subsidiary employees, with both receiving 96.20% approval. Additionally, material related party transactions involving international subsidiaries Electronics Bazaar FZC and Bright World Technologies Inc were cleared with over 97.39% support. These approvals facilitate long-term employee incentive structures and formalize operational synergies within the group's global structure.
- Ratification of Electronics Bazaar ESOP Scheme 2024 passed with 96.20% majority (95.85 million votes in favor).
- Extension of ESOP grants to employees of subsidiaries and associates approved by 96.20% of voting shareholders.
- Material Related Party Transactions with subsidiary Electronics Bazaar FZC cleared with 97.40% favor among non-interested voters.
- Inter-subsidiary transactions between Electronics Bazaar FZC and Bright World Technologies Inc approved by 97.40% majority.
- Total of 55,863 members were on record for the voting process which concluded on January 15, 2026.
GNG Electronics Limited has concluded its postal ballot process on January 15, 2026, to obtain shareholder approval for four key resolutions. The resolutions include the ratification of the Electronics Bazaar Employees Stock Option Scheme – 2024 and its extension to employees of subsidiaries and associate companies. Furthermore, the company sought approval for material related party transactions involving its subsidiary, Electronics Bazaar FZC, and Bright World Technologies INC. The final results and Scrutinizer's report are expected to be disclosed within two working days.
- Remote e-voting period concluded on January 15, 2026, at 5:00 p.m. IST.
- Proposed ratification and alignment of Electronics Bazaar Employees Stock Option Scheme – 2024.
- Sought approval for material related party transactions with subsidiary Electronics Bazaar FZC.
- Extension of ESOP grants to eligible employees of subsidiaries, associates, and holding companies.
- Scrutinizer's report on the voting results is expected within 2 working days.
GNG Electronics Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations for the quarter ended December 31, 2025. The company's Registrar, Bigshare Services Pvt. Ltd., confirmed that the regulation is currently not applicable. This is because 100% of the company's shares are already held in dematerialized form. No requests for dematerialization or rematerialization were processed during this three-month period.
- Compliance certificate filed for the quarter ended December 31, 2025
- 100% of the company's shares are confirmed to be in dematerialized form
- Zero requests for dematerialization or rematerialization received during the quarter
- Confirmation issued by Registrar and Share Transfer Agent, Bigshare Services Pvt. Ltd.
GNG Electronics Limited has announced the adoption of a refreshed logo and updated color scheme as of January 07, 2026. This initiative is part of a broader branding and marketing strategy aimed at enhancing the company's visual identity and market presence. The new logo will be implemented across all touchpoints, including product labels, advertisements, and digital platforms. While the update modernizes the brand's image, it does not impact the company's core business operations or financial standing.
- GNG Electronics adopted a refreshed logo and updated color scheme on January 07, 2026.
- The update is part of a strategic branding initiative to strengthen visual identity and market presence.
- The new branding will be applied to all product labels, marketing materials, websites, and official communications.
GNG Electronics Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's Q3 FY2026 financial results. The window will remain closed until 48 hours after the unaudited financial results for the quarter ending December 31, 2025, are declared. This is a standard regulatory procedure to prevent insider trading prior to the disclosure of price-sensitive information.
- Trading window closure begins on January 1, 2026, for all directors and designated employees.
- The closure is for the approval of unaudited financial results for the quarter ending December 31, 2025.
- The window will reopen 48 hours after the financial results are officially announced to the exchanges.
- The specific date for the Board of Directors meeting to approve the results will be notified separately.
GNG Electronics has issued a postal ballot notice to ratify its 2024 Employee Stock Option Scheme, involving 57,00,575 shares or 5% of post-listing capital. The move aligns the scheme with SEBI regulations following the company's recent IPO. Additionally, shareholders are asked to approve material related party transactions with subsidiaries Electronics Bazaar FZC and Bright World Technologies INC. The e-voting period concludes on January 15, 2026, with results expected by January 17.
- Ratification of ESOP Scheme 2024 covering 57,00,575 equity shares.
- ESOP pool represents 5% of the company's post-listing share capital as of July 30, 2025.
- Extension of ESOP eligibility to employees of subsidiaries and associate companies.
- Approval sought for material related party transactions with foreign subsidiaries Electronics Bazaar FZC and Bright World Technologies INC.
- Remote e-voting period is scheduled from December 17, 2025, to January 15, 2026.
GNG Electronics Limited's board approved extending the 'Electronics Bazaar Employees Stock Option Scheme – 2024' to eligible employees of subsidiary, associate, and holding companies. They also reviewed and approved material related party transactions (RPTs) of Electronics Bazaar FZC, a subsidiary, with Bright World Technologies INC, for sales of goods/services not exceeding ₹250 Crores, subject to shareholder approval. A postal ballot notice was approved for shareholder approval of the ESOP scheme alignment and the RPTs. The cut-off date for the postal ballot is December 12, 2025.
- Extended ESOP Scheme to employees of Subsidiary, Associate, and Holding Companies.
- Approved Related Party Transactions up to ₹250 Crores between Electronics Bazaar FZC and Bright World Technologies INC.
- 57,00,575 Employee Stock Options covered by the scheme, being 5% of the post listing share capital.
- Exercise Period of 2 years from the date of respective vesting of options.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 24.7% YoY in Q2 FY26 to INR 439.9 Cr and 23.7% YoY in H1 FY26 to INR 752.2 Cr, primarily driven by the high-end refurbished ICT devices segment which now contributes 97% of revenue under the Electronics Bazaar brand.
Geographic Revenue Split
The company operates in 42 countries (up from 38), including India, USA, UAE, and new markets in Europe and South Africa. While specific regional % splits are not disclosed, international expansion in the Middle East and U.S. is cited as a primary growth driver.
Profitability Margins
Gross Profit Margin improved significantly to 19.9% in Q2 FY26 (up 541 bps from 14.5% YoY) and 20.5% in H1 FY26. PAT Margin increased to 7.4% in Q2 FY26 (up 88 bps) and 6.8% in H1 FY26 (up 101 bps) due to better procurement and higher-margin refurbishment sales.
EBITDA Margin
EBITDA Margin stood at 10.6% in Q2 FY26 (up 46 bps YoY) and 10.9% in H1 FY26. The company aims for a sustainable 10%+ margin, targeting a 75 bps annual improvement through operating leverage and structural cost efficiencies.
Capital Expenditure
The company is expanding physical capacity for enterprise-grade computers and servers, though specific INR Cr capex figures are not disclosed. It maintains an asset-light model, with Property, Plant, and Equipment valued at INR 32.4 Cr as of Sep-25.
Credit Rating & Borrowing
CARE Ratings assigned a 'CARE BBB-; Positive' rating. Interest coverage ratio was 2.49x in FY24. Total borrowings were reduced from INR 434.4 Cr in Mar-25 to INR 211.2 Cr in Sep-25 following equity infusion.
Operational Drivers
Raw Materials
Used ICT hardware (laptops, enterprise-grade computers, servers, and high-end SSDs) represents the primary 'raw material' for refurbishment, accounting for the bulk of the cost of goods sold (COGS).
Import Sources
Sourced globally through a network of 601 suppliers across India, UAE, and the USA to ensure a steady pipeline of used technology assets.
Key Suppliers
Key strategic partnerships for procurement and refurbishment support include industry leaders such as Microsoft, HP, and Lenovo.
Capacity Expansion
Current global capacity is north of 120,000 units per month. The company is taking more space to accommodate larger enterprise-grade hardware and servers to meet growing institutional demand.
Raw Material Costs
Gross Profit of INR 154.4 Cr in H1 FY26 on revenue of INR 752.2 Cr implies raw material/procurement costs are approximately 79.5% of revenue, improved from 83.1% in H1 FY25.
Manufacturing Efficiency
The company processed approximately 300,000 units in H1 FY26 against a monthly capacity of 120,000 units, indicating a capacity utilization rate of approximately 41.6% for the half-year period.
Logistics & Distribution
Logistics is a major component of 'Other Expenses,' which represented 4.25% of revenue in Q2 FY26, up from 1.9% in Q2 FY25.
Strategic Growth
Expected Growth Rate
20-25%
Growth Strategy
Growth will be achieved by expanding the distribution network (currently 4,515 touchpoints), increasing the sales team from 96 to 157 members, and penetrating new markets in Europe and South Africa. The company is also shifting focus toward higher-value enterprise-grade computers and servers.
Products & Services
Refurbished laptops, enterprise-grade computers, servers, high-end SSDs, and comprehensive warranty services.
Brand Portfolio
Electronics Bazaar (contributes 97% of total revenue).
New Products/Services
Expansion into enterprise-grade servers and high-end SSDs; these products are expected to drive the targeted 75 bps margin expansion.
Market Expansion
Targeting 42+ countries with recent entries into three European markets and South Africa during FY26.
Strategic Alliances
Partnerships with HP and Lenovo for refurbishment and distribution; Amazon Premium Pro Seller status for retail reach.
External Factors
Industry Trends
The global circular technology economy is growing as ESG mandates force corporations to dispose of assets responsibly. The industry is shifting from unorganized to organized players who can provide credible warranties.
Competitive Landscape
Competes with unorganized local refurbishers and new product sales from OEMs. The organized nature and scale (120k units/month) provide a cost and trust advantage.
Competitive Moat
Moat is built on a robust procurement network (601 suppliers), a proprietary refurbishment process, and the 'Electronics Bazaar' brand which provides a 100% comprehensive warranty, creating high switching costs for B2B clients.
Macro Economic Sensitivity
Sensitive to global IT spending cycles and corporate refresh cycles; high inflation may actually benefit the company as customers shift from new to more affordable refurbished ICT products.
Consumer Behavior
Increasing acceptance of 'affordable and credible' refurbished products over expensive new hardware, especially in price-sensitive segments and ESG-conscious corporations.
Geopolitical Risks
Potential U.S. tariffs on electronics; however, management currently anticipates no near-term impact on their specific refurbished product category.
Regulatory & Governance
Industry Regulations
Subject to e-waste management rules and international trade regulations for used electronics. Compliance with global quality standards is maintained across facilities in India, UAE, and USA.
Environmental Compliance
The company operates within the circular economy framework, helping corporations meet sustainability and privacy goals through responsible asset disposal.
Taxation Policy Impact
Effective tax rate for H1 FY26 was approximately 12.6% (INR 7.4 Cr tax on INR 58.6 Cr PBT).
Risk Analysis
Key Uncertainties
The primary uncertainty is the working capital intensive nature of the business, with negative cash flow from operations historically due to high inventory (INR 414.7 Cr) and receivable (INR 174.8 Cr) requirements.
Geographic Concentration Risk
While global, the company has significant infrastructure and financial exposure in India, the UAE, and the USA.
Third Party Dependencies
High dependency on OEM partners (HP, Lenovo) for refurbishment certifications and supply of genuine parts/support.
Technology Obsolescence Risk
Inherent risk in IT distribution; mitigated by OEM compensation agreements when new models are launched and existing models require discounting.
Credit & Counterparty Risk
Receivables increased from INR 67.6 Cr (Mar-25) to INR 174.8 Cr (Sep-25). The company offers 30-35 days credit to channels but claims a history of zero bad debts.