Rashi Peripherals is targeting a Rs 25,000 crore pipeline for data center projects, while GNG Electronics reports profit growth driven by rising demand for refurbished laptops. Both companies are navigating shifts in global hardware pricing, with Rashi focusing on enterprise AI infrastructure and GNG leveraging the cost-sensitive electronics market.
Technology distributors are seeing distinct opportunities as global demand for AI infrastructure and high hardware costs change buying patterns. Rashi Peripherals, a major player in the ICT distribution space, is focusing on the Indian data center market. The company is managing a project pipeline estimated at Rs 20,000 to Rs 25,000 crore. This ambition follows their recent work on a large-scale project for Yotta, which involved supplying 4,000 GPUs and 512 servers valued at Rs 2,000 crore.
Financially, Rashi Peripherals reported revenue of Rs 15,827.3 crore for FY26, marking a 15% year-on-year increase. Their core business segment saw a 31% rise, supported by partnerships with major tech firms like Dell Technologies. The company’s profit after tax rose 34.6% to Rs 282 crore, with EBITDA margins reaching 2.9%. The firm is also expanding its reach into the semiconductor sector through subsidiaries.
Meanwhile, GNG Electronics, known for its Electronics Bazaar brand, is capitalizing on the high cost of new computers. With new PC prices rising by up to 57% due to chip and memory costs, the company has seen increased demand for its refurbished laptops. In FY26, the company sold roughly 727,000 units, with laptops making up 81% of its sales. To support this, it has built an inventory reserve valued at Rs 743.1 crore and expanded its monthly processing capacity to 150,000 units across facilities in the UAE and Mumbai.
GNG Electronics reported revenue of Rs 1,891.1 crore for FY26, a 34% increase from the previous year. Their profit after tax grew by 91.2% to Rs 132 crore, with EBITDA margins improving to 10.6%. Management has provided a growth outlook of 25% for revenue in FY27, targeting an EBITDA margin of 11.5%.
For investors, the contrast between these two business models is notable. Rashi Peripherals operates on higher volume but lower margins typical of large-scale enterprise distribution. In contrast, GNG Electronics maintains higher profitability metrics, including a better Return on Equity and Return on Capital Employed, though it currently trades at a higher valuation multiple. The key for both companies will be their ability to manage inventory costs and execute on their respective pipelines. Investors may track Rashi’s progress in converting its large data center project funnel and GNG’s ability to maintain sales growth if new hardware prices stabilize or fluctuate in the coming quarters.