GNG Electronics Limited (formerly known as GNG Electronics Private Limited) has released its standalone and consolidated financial results for the quarter and year ended March 31, 2026, and subsequently held an earnings conference call with analysts and investors on May 05, 2026. The call was moderated by Mr. Avinash Karumanchi from Motilal Oswal and featured management commentary from Founder and Managing Director Mr. Sharad Khandelwal, Director Mr. Ajay Pancholi, and CFO Mr. Raakesh Jhunjhunwala. The transcript was filed with stock exchanges on May 11, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Standalone Financial Performance

On a standalone basis, GNG Electronics reported total income of ₹3,008.84 million for the quarter ended March 31, 2026, compared to ₹2,275.08 million in the preceding quarter ended December 31, 2025, and ₹2,472.23 million in the corresponding quarter of the prior year. For the full year ended March 31, 2026, standalone total income stood at ₹9,224.52 million, against ₹7,219.30 million for the year ended March 31, 2025. The following table presents the key standalone financial metrics:

EPS is of ₹ 2/- each; not annualised except for year-end figures.

Consolidated Financial Performance

On a consolidated basis, GNG Electronics reported total income of ₹6,522.81 million for the quarter ended March 31, 2026, compared to ₹4,878.34 million in the preceding quarter ended December 31, 2025, and ₹4,586.83 million in the corresponding quarter of the prior year. For the full year ended March 31, 2026, consolidated total income reached ₹18,954.07 million, compared to ₹14,203.67 million for the year ended March 31, 2025. The table below summarises the consolidated financial highlights:

EPS is of ₹ 2/- each; not annualised except for year-end figures.

Earnings Call: Management Commentary

Addressing analysts on the earnings call, Managing Director Sharad Khandelwal described FY26 as a "remarkable year" and a "best ever annual performance." He highlighted that consolidated revenue grew 43% year-on-year to INR651.7 crore in Q4 FY26, while profit after tax nearly tripled to INR42.1 crore. EBITDA margin for the quarter expanded to 9.8%, an improvement of nearly 307 basis points over Q4 FY25, and PAT margin expanded to 6.5%, an improvement of over 323 basis points year-on-year. For the full year FY26, consolidated revenue stood at INR1,891 crore, representing a year-on-year growth of 34%, with EBITDA margin improving to 10.6% — an expansion of 166 basis points — and profit after tax growing 91% to INR132 crore, translating to a PAT margin of 7%, up from 4.9% in FY25.

CFO Raakesh Jhunjhunwala elaborated on the full-year numbers, noting that gross profit grew to INR380.9 crore with gross margin expanding by 225 basis points to 20.1%, and EBITDA grew to INR200.5 crore. India consumption revenue grew 80% from INR345 crore to INR622 crore in FY26. The company's geographic revenue mix for the full year was approximately India at 33%, US at 21%, Europe at 20%, UAE at 12%, and the rest of the world at 14%.

Volume, Pricing, and Operational Metrics

Director Ajay Pancholi shared that total volume for the full year was approximately 7,27,000 units compared to approximately 5,90,000 units in the prior year, with laptops comprising approximately 81% of revenue and other products the remaining 19%. For Q4 FY26, quarterly volumes were approximately 2,41,000 units — comprising approximately 1,76,000 laptops and 65,000 others. The blended average selling price (ASP) for Q4 FY26 stood at approximately INR27,000, with laptop ASP at approximately INR30,000 and others at approximately INR19,000. On a full-year basis, the blended ASP was approximately INR26,000, with laptops at approximately INR28,800 and others at approximately INR18,300.

The company's total employee strength stood at 2,148 as of March 31, 2026, up from approximately 1,200 at the start of the year, with approximately 1,800 being production technicians. Refurbishment capacity was stated at approximately 150,000 units per month. The company now supplies to 46 countries, up from 38 at the start of the year, and has grown its customer-facing reach to 4,895 touch points from 4,154 at the beginning of the year.

Industry Tailwinds: Component Prices and PC Market Dynamics

Management highlighted significant structural shifts in the global PC industry driven by AI-led memory and component price escalations. Key data points shared during the call are summarised below:

Management also noted that a typical entry-level laptop with 8GB RAM and 512GB SSD, which was selling in India for approximately INR25,500 on December 1, 2025, rose to approximately INR32,500 by January 1 and is selling at close to INR40,000 — an increase of nearly 57% in six months. In international markets, a comparable laptop rose from approximately USD315 on October 1 to approximately USD440, an increase of close to 40% in six months. According to IDC, global new PC shipments stood at approximately 285 million units in 2025, and IDC has cut its 2026 PC shipment forecast to a decline of around 11%, implying a reduction of roughly 32 million units in 2026 alone.

Balance Sheet, Working Capital, and Inventory Strategy

Management addressed investor concerns around elevated inventory and debt levels. Net debt as of March 31, 2026, stood at approximately INR300 crore, down from INR466 crore at December 31, 2025, and INR383 crore at March 31, 2025 (which had included a shareholder loan of approximately INR60 crore, now fully repaid). Inventory stood at INR743 crore as of March 31, 2026, compared to INR683 crore at December 31, 2025, and approximately INR490 crore at March 31, 2025. Management described this as a deliberate strategic positioning ahead of anticipated component price increases, stating that inventory was procured at comfortable prices. Debtor levels declined to INR206 crore at March 31, 2026, from INR285 crore at December 31, 2025. Management indicated debtor days would be maintained at current levels of approximately 40–45 days, in line with credit terms offered by OEMs for new machines.

During the Q&A session, management also addressed questions on the geopolitical situation in West Asia, confirming that operations at the Sharjah facility remain fully unaffected, with all inward and outward shipments conducted by air. Sharad Khandelwal, speaking from Sharjah during the call, stated that facilities have been operational every single day and that no impact on logistics, production, or people availability has been observed. Management also confirmed no plans to relocate facilities, expressing confidence that the situation in the UAE will normalise.

FY27 Guidance and Strategic Initiatives

For FY27, management guided for approximately 25% revenue growth and a PAT margin expansion of at least 50 basis points from the current 7% level, implying an EBITDA margin of approximately 11.5%. Management noted that the 25% guidance was described as conservative. Key strategic initiatives include a consumer financing program offering refurbished laptops at EMIs starting at ₹1,000 per month through structured partnerships with consumer finance players in India, expansion of channel partner engagement through on-ground meets across major cities, and digital and influencer-led marketing campaigns. Management also confirmed that distribution partnerships with Ingram and Supertron, formalised in February, are in early stages with revenues from these partners currently at a minuscule percentage, with meaningful scale expected in the coming year. Discussions for new distribution partnerships are stated to be in advanced stages in Europe and the United States. Management further confirmed no need for equity capital infusion through FY28–FY29, with growth to be funded through existing balance sheet headroom and cash accruals.

Regulatory Compliance and Disclosures

The financial results were filed with the stock exchanges on May 05, 2026, under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The newspaper publication of these results was carried out on May 07, 2026, in the Financial Express (All Editions, English) and Loksatta (Marathi), in compliance with Regulation 47 of the Listing Regulations. The earnings call transcript was filed with exchanges on May 11, 2026, under Regulation 30 of the Listing Regulations, and has also been disseminated on the company's website. The complete format of the financial results is available on the websites of BSE Limited, National Stock Exchange of India Limited, and the company's website ( www.electronicsbazaar.com ). The results were signed off by Sharad Khandelwal, Managing Director (DIN: 03282602), from Dubai on May 05, 2026.

GNG Electronics Limited, India's largest refurbisher of laptops and desktops and among the largest refurbishers of ICT devices overall, both globally and in India, announced its audited financial results (Standalone and Consolidated) for the quarter and year ended March 31, 2026. The Board approved these results at its meeting held on May 5, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company delivered strong performance across all key metrics, with consolidated revenue growing 34% year-on-year and profitability improving significantly across both quarterly and annual periods. On a consolidated basis, Q4 net profit stood at ₹42.10 Cr compared to ₹14.80 Cr in the same period last year, while Q4 revenue from operations reached ₹651.70 Cr against ₹455.80 Cr year-on-year. The audio recording of the Earnings Conference Call with analysts and investors held on May 05, 2026 has been made available on the company's website.

Management Commentary

Managing Director Mr. Sharad Khandelwal highlighted the company's strong execution during the year. "We are delighted to close FY26 on a strong note, having met and surpassed our revised growth guidance for the year. For the full year FY26, the Company delivered revenue growth of 34% YoY, with EBITDA margins expanding by 166 bps over FY25 — reflecting strong execution across the business and favourable industry tailwinds," he said. He further noted that Q4 PAT nearly tripled on a year-on-year basis alongside revenue growth of ~43%, highlighting improving margins. Return on Equity (ROE) moderated to 26.8% as of March 31, 2026 from 35% in the previous year, primarily due to the expanded equity base post IPO. The management attributed the positive industry environment to accelerating AI adoption and supply-side constraints in new computing hardware, driving a structural shift towards refurbished enterprise-grade devices.

Consolidated Financial Performance

GNG Electronics delivered robust consolidated financial performance for both Q4 FY26 and the full year FY26. Revenue from operations for Q4 FY26 stood at ₹651.70 Cr, up 43.0% year-on-year from ₹455.80 Cr in Q4 FY25, and up 33.7% quarter-on-quarter from ₹487.20 Cr in Q3 FY26. For the full year, consolidated revenue from operations grew 34.0% to ₹1,891.10 Cr from ₹1,411.10 Cr in FY25. Q4 EBITDA came in at ₹634M compared to ₹279M in the same quarter last year, with EBITDA margin at 9.73% versus 6.12% year-on-year. The detailed consolidated income statement is presented below:

Standalone Financial Performance

On a standalone basis, GNG Electronics also reported strong growth for FY26. The standalone income statement for the quarter and year ended March 31, 2026 is presented below:

Balance Sheet Highlights

The company's consolidated balance sheet reflects significant expansion following its IPO. Total assets grew to ₹1,254.00 Cr as of March 26 from ₹719.50 Cr in March 25. Total equity increased substantially to ₹759.30 Cr from ₹227.10 Cr, driven by the IPO proceeds. On a standalone basis, total assets stood at ₹6,799.13 million as at March 31, 2026, compared to ₹3,400.47 million in the previous year, with total equity rising to ₹5,046.66 million from ₹903.67 million. Key consolidated balance sheet metrics are summarised below:

Cash Flow Summary

The standalone cash flow statement for the year ended March 31, 2026 reflects significant working capital deployment and IPO-related financing activity. Net cash used in operating activities stood at ₹(1,265.89) million, while net cash used in investing activities was ₹(1,110.45) million, primarily on account of ₹1,000.00 million invested in a subsidiary. Net cash generated from financing activities amounted to ₹2,764.61 million, supported by proceeds from the issue of equity shares of ₹4,000.00 million. Cash and cash equivalents at the end of the year stood at ₹434.00 million, compared to ₹45.72 million at the beginning of the year. On a consolidated basis, net cash used in operating activities was ₹(2,153.02) million, net cash used in investing activities was ₹(455.13) million, and net cash generated from financing activities was ₹3,512.72 million, resulting in consolidated cash and cash equivalents of ₹1,182.38 million at year-end.

Key Board Decisions and Regulatory Compliance

Alongside the financial results, the Board approved the appointment of Ms. Ashita Pandya, Head of Accounts – India and a Chartered Accountant, as the Internal Auditor of the Company for the financial year 2026-27. Ms. Pandya has been associated with the company since October 1, 2016 and holds a bachelor's degree in commerce from University of Mumbai. The Board also sanctioned the issuance of a corporate guarantee of up to AED 20,000,000 (AED 20 million) in favour of Abu Dhabi Commercial Bank PJSC, intended to secure banking financing facilities availed by Electronics Bazaar (FZC), a material subsidiary of the company. The guarantee is issued at arm's length, with no interest from the promoter or promoter group, and will be disclosed as a contingent liability in the financial statements. The statutory auditors, M/s. Shankarlal Jain & Associates LLP, issued an audit report with an unmodified opinion on the audited financial results for the year ended March 31, 2026. The financial statements were prepared in compliance with Indian Accounting Standards (Ind AS) and SEBI regulations. In accordance with SEBI regulations on insider trading, the company's trading window, which had closed on April 1, 2026, will reopen 48 hours after the declaration of the financial results.

About GNG Electronics Limited

GNG Electronics Limited follows a repair-over-replacement approach to provide affordable, reliable, and premium ICT devices functionally and aesthetically comparable to new products, backed by industry-leading warranties. With a strong presence across India, the USA, Europe, Africa, and the UAE, the company refurbished nearly 7.27 lakh devices in FY26, offering a portfolio of SKUs including laptops, desktops, tablets, servers, premium smartphones, workstations, and accessories.

Earnings Conference Call Recording

Pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, GNG Electronics has informed the exchanges that the audio recording of the Earnings Conference Call with analysts and investors, held on Tuesday, May 05, 2026, has been made available on the company's website. The recording can be accessed at: https://www.electronicsbazaar.com/media/investor/i/Q4_FY26_Earnings_Call_Recording.mp3 . The disclosure was signed by Sarita Vishwakarma, Company Secretary & Compliance Officer, Membership No. A59547.