GNG Electronics has significantly expanded its financial partnership with Kotak Mahindra Bank by enhancing its overall credit facility from ₹51.00 crores to ₹75.00 crores through a supplemental agreement executed on March 16, 2026. The company disclosed this development to stock exchanges on March 17, 2026, in compliance with SEBI listing regulations.

Enhanced Credit Facility Details

The supplemental agreement modifies the original Master Facility Agreement dated July 26, 2024, with Kotak Mahindra Bank. The enhanced facility will be utilized for meeting the working capital requirements of the company and provides interchangeability between various facilities.

Security and Terms

The facility is secured by a first pari passu hypothecation charge on all existing and future receivables and current assets of the company. The agreement does not contain any special rights such as the right to appoint directors, first right to share subscription, or restrictions on capital structure changes.

Regulatory Compliance

GNG Electronics has confirmed that this transaction does not fall within related party transactions, as Kotak Mahindra Bank is not related to the promoter, promoter group, or group companies. The company has no shareholding in Kotak Mahindra Bank, maintaining an arm's length banking relationship.

This facility enhancement demonstrates the company's growing financial requirements and Kotak Mahindra Bank's continued confidence in GNG Electronics' business prospects and creditworthiness.

GNG Electronics Limited announced its unaudited financial results for the quarter ended December 31, 2025, showcasing exceptional year-over-year growth across all key financial metrics. The Board of Directors approved these results during their meeting held on February 05, 2026, with the company demonstrating robust operational momentum in the refurbished ICT devices segment.

Q3FY26 Performance with Year-over-Year Comparison

The company delivered outstanding consolidated performance in Q3FY26, with revenue from operations reaching Rs 4.90 billion compared to Rs 3.50 billion in the corresponding quarter of the previous year, representing a strong 40.00% year-over-year growth. Net profit surged to Rs 387.00 million from Rs 191.00 million in Q3FY25, demonstrating remarkable 102.60% growth. The company also achieved significant EBITDA improvement with Rs 541.00 million compared to Rs 306.00 million in the previous year, marking a 76.80% increase.

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025 demonstrated sustained growth momentum across all key financial parameters. Revenue from operations reached Rs 1,239.40 million compared to Rs 955.30 million in the corresponding period of the previous year, reflecting 29.70% growth. EBITDA stood at Rs 136.50 million, up 43.10% year-over-year, with EBITDA margin improving to 11.00% from 10.00% in the previous year.

Earnings Conference Call and Management Commentary

The company conducted its earnings conference call on February 05, 2026, hosted by Motilal Oswal Financial Services. Managing Director Sharad Khandelwal highlighted the favorable industry dynamics, noting that AI adoption and supply-side constraints in new computing hardware are driving customers toward refurbished enterprise-grade devices as a reliable and cost-efficient alternative.

During the call, management revealed significant developments in memory pricing, with DDR5 8GB RAM prices increasing from $23.35 to $86.61 between October 2025 and January 2026, representing a 270% increase. This trend has led to new PC price increases of approximately 20%, creating expanded opportunities for the refurbished PC segment.

Strategic Distribution Partnerships

GNG Electronics announced two significant strategic partnerships with leading technology distributors in India. The company has partnered with one of the world's largest technology distributors and the second largest distributor in India, as well as separately partnered with the fifth largest technology distributor in India. These partnerships are expected to enhance market penetration across Tier 2, Tier 3 cities, and emerging towns.

Revised Guidance and Market Outlook

Management revised its revenue growth guidance upward from approximately 25% to 28%-30% year-over-year, along with profitability improvement of 150-200 basis points compared to the earlier guidance of approximately 75 basis points. The company expects memory price pressures to continue until end of 2027, creating sustained tailwinds for the refurbished PC market.

Regulatory Compliance and Publication

Pursuant to Regulation 47 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its unaudited financial results in Financial Express (English) and Lokatta (Marathi) newspapers on February 07, 2026. Additionally, the earnings call transcript was disclosed under Regulation 30 on February 11, 2026.