GNG Electronics Limited has filed its quarterly monitoring agency report for Q3FY26, detailing the utilization of proceeds from its ₹400.00 crore Initial Public Offering. The report, submitted to both NSE and BSE on February 05, 2026, covers the quarter ended December 31, 2025, and was prepared by CARE Ratings Limited serving as the monitoring agency.

IPO Proceeds Utilization Overview

The monitoring agency report reveals that during Q3FY26, GNG Electronics utilized ₹9.54 crore specifically towards issue expenses. This brings the cumulative utilization to ₹392.65 crore out of the total IPO proceeds of ₹400.00 crore, leaving ₹7.36 crore unutilized as of December 31, 2025.

Object-wise Fund Deployment Status

The IPO proceeds were allocated across three primary objects as outlined in the original offer document. The company has completed utilization for debt repayment and general corporate purposes, with only issue expenses remaining partially unutilized.

Compliance and Monitoring Details

CARE Ratings Limited, in its capacity as the monitoring agency, confirmed that all utilization during Q3FY26 remained in line with the disclosures made in the offer document. The agency noted no deviations from the stated objects and confirmed that no shareholder approval was required for any material deviations during the quarter.

The company has successfully completed debt repayment for both the parent company and its material subsidiary, Electronics Bazaar FZC. The debt repayment for the company was completed by August 02, 2025, while the subsidiary's debt repayment was finished by September 04, 2025, both ahead of the March 31, 2026 timeline specified in the offer document.

Unutilized Funds Management

The remaining ₹7.36 crore of unutilized proceeds is maintained across two designated bank accounts with HDFC Bank. The funds are split between a Public Issue Account holding ₹0.88 crore and a Monitoring Account containing ₹6.48 crore.

The monitoring agency report was certified by Chartered Accountant firm Shankarlal Jain and Associates LLP on January 19, 2026, and signed by Mr. Raunak Modi, Assistant Director at CARE Ratings Limited. The report confirms the company's compliance with SEBI regulations regarding IPO proceeds utilization and monitoring requirements.

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.