GNG Electronics shares reached a record Rs 776.25 after reporting a 42% revenue rise to Rs 624.81 crore in Q2 FY27. Strong demand for refurbished tech drove a 72.5% jump in profit, leading the company to raise its annual revenue guidance to 40%. However, investors should watch for higher finance costs and working capital pressure that could impact future cash flow.
GNG Electronics saw its share price reach an all-time high of Rs 776.25 on November 4, 2026, following the release of robust financial results for the second quarter of fiscal year 2027. The company, which focuses on the refurbished electronics market, reported a 42% year-on-year increase in consolidated revenue, which touched Rs 624.81 crore.
The profit growth was even steeper, with profit after tax rising 72.5% to Rs 56.35 crore. The company’s ability to improve its margins has been a key factor in this performance. Gross margins expanded by 5.15% during the quarter, helping EBITDA climb to Rs 94 crore. This success is largely driven by a shift in consumer behavior, where buyers are increasingly opting for refurbished devices instead of expensive new ones, allowing GNG Electronics to command better pricing.
Management has shown confidence in this trend by raising its full-year revenue growth guidance to 40%. They also anticipate a 1.5% improvement in profit margins for the full fiscal year compared to the previous year. To support this ongoing expansion, the board has approved additional working capital loans and provided corporate guarantees for its subsidiary, Electronics Bazaar FZC.
While the growth numbers are strong, investors should monitor certain financial pressure points. The company’s finance costs have risen significantly, jumping 161.2% to Rs 22.04 crore, reflecting the cost of fueling its operations. Additionally, the company is dealing with higher working capital needs, as seen in rising inventory levels and outstanding payments from customers. These factors can put pressure on actual cash available to the company, even when profit figures look attractive on paper.
Furthermore, the company expects a higher tax burden for FY27, projected between 14% and 15%, compared to 10.6% in the previous year. As the company continues to expand globally, the primary monitorables for shareholders will be the efficiency of inventory turnover and whether the current high demand for refurbished technology remains sustainable against the pricing of new devices in the broader market.