GNG Electronics reported a stellar Q2 FY27, with revenue jumping 42% to Rs 624.8 crore and net profit soaring 72.5% to Rs 56.4 crore. The company benefited from higher demand for refurbished ICT hardware amid rising new device costs and global supply constraints.
GNG Electronics Q2 FY27 Financial Results
Revenue at Rs 624.8 crore; Net Profit at Rs 56.4 crore.
Reader Takeaway: Strong global demand for refurbished tech boosts margins, though rising inventory and debt levels bear monitoring.
What just happened
GNG Electronics has posted strong financial growth for the second quarter of FY27. The company’s consolidated revenue climbed to Rs 624.8 crore, a 42% increase over the same period last year. Profit after tax (PAT) rose significantly to Rs 56.4 crore, reflecting a 72.5% year-on-year surge. Margins also improved, with EBITDA margins expanding by 439 basis points to 15.0%.
Why this matters
The company’s performance highlights a structural shift in the ICT sector. Management notes that customers are increasingly opting for professionally refurbished devices due to the rising costs of new electronics and global supply shortages in memory components. This market pivot, coupled with a focus on sustainability, is driving top-line and bottom-line growth for GNG.
Operating Updates
GNG Electronics has expanded its operational footprint to 55 countries. The company now services 5,542 customer touchpoints and has grown its supplier network to 820. In the domestic market, the company launched its first 'Electronics Bazaar' store in Jaipur and is aggressively expanding its channel partner reach through dedicated programs like 'EB Elevate' and 'EB Elite'.
Risks to watch
While the company is scaling, balance sheet figures show rising capital requirements. Borrowings increased from Rs 405.7 crore in March 2026 to Rs 610.5 crore by September 2026. Additionally, inventories have expanded to Rs 911.6 crore, suggesting a need for efficient working capital management as the scale of operations grows.
Context metrics
- Revenue H1 FY27: Rs 1,037.3 crore (vs Rs 752.2 crore in H1 FY26)
- PAT H1 FY27: Rs 85.3 crore (vs Rs 51.2 crore in H1 FY26)
- Trade Receivables: Rs 306.2 crore (up from Rs 206.8 crore in March 2026)
What to track next
Investors should monitor the company's ability to maintain high margins amid fluctuating global memory prices and the impact of the increased debt load on future cash flows.