GNG Electronics Limited announced its unaudited financial results for the quarter ended December 31, 2025, showcasing strong operational performance alongside strategic corporate guarantee enhancements. The Board of Directors approved these results and multiple corporate guarantee decisions during their meeting held on February 05, 2026.

Financial Performance Highlights

The company delivered robust financial results across both standalone and consolidated operations for Q3FY26. The consolidated performance significantly outpaced standalone results, reflecting the strong contribution from subsidiary operations.

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025 demonstrated sustained growth momentum across all key financial parameters. Consolidated revenue from operations reached Rs 12,394.20 million compared to Rs 6,181.74 million on a standalone basis, highlighting the substantial contribution from subsidiary operations.

Corporate Guarantee Enhancements

The Board approved substantial enhancements to corporate guarantees supporting Electronics Bazaar (FZC), the company's material subsidiary, across four major banking relationships. These strategic decisions strengthen the subsidiary's access to financing facilities in the UAE market.

Commercial Bank of Dubai Enhancement

The corporate guarantee was enhanced from AED 15,000,000 to AED 20,000,000, representing an additional guarantee of AED 5,000,000. This enhancement supports the expanded banking financing facilities for Electronics Bazaar (FZC).

RAKBANK Facility Expansion

The guarantee with National Bank of Ras Al Khaimah was significantly enhanced from AED 5,000,000 to AED 15,000,000, providing an additional AED 10,000,000 in guarantee coverage for enhanced banking facilities.

Emirates Islamic Bank Enhancement

The corporate guarantee was increased from AED 7,000,000 to AED 15,000,000, adding AED 8,000,000 in additional guarantee capacity to support the subsidiary's financing requirements.

New DBS Bank Facility

The Board approved a new corporate guarantee of AED 15,000,000 in favor of DBS Bank Limited, establishing a fresh banking relationship to support Electronics Bazaar (FZC)'s financing facilities.

Business Operations and Segment Performance

GNG Electronics operates in the Information and Communication Technologies Device (ICT Device) segment as a single line of business. The company maintains revenue streams from both domestic sales and exports, which are considered geographical segments under the operational framework. The substantial difference between standalone and consolidated performance indicates strong international operations through subsidiary companies including Electronics Bazaar FZC, Bright World Technologies Inc., and other step-down subsidiaries across UAE, USA, and Netherlands.

Regulatory Compliance and Audit Framework

The unaudited financial results were prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013. Shankarlal Jain & Associates LLP conducted the limited review of both standalone and consolidated financial results, confirming compliance with SEBI Listing Regulations. The audit committee reviewed and recommended the results for Board approval, ensuring proper governance protocols were followed throughout the financial reporting process.

GNG Electronics Limited, a leading player in the refurbished ICT devices sector, has reported robust financial results for Q2 FY26, demonstrating significant growth and expansion in its global operations.

Financial Highlights

• Q2 FY26 revenue reached Rs. 4,399.00 million, marking a 41% sequential increase and 25% year-over-year growth.
• H1 FY26 consolidated revenue stood at Rs. 7,522.00 million, representing 24% year-over-year growth.
• Gross margin improved to 19.90% in Q2 FY26 from 14.50% in Q2 FY25.
• EBITDA for Q2 FY26 rose to Rs. 467.81 million with a margin of 10.63%.
• Profit after tax for Q2 FY26 stood at Rs. 326.00 million, reflecting a 42% year-over-year growth.

Operational Highlights

Strategic Developments

GNG Electronics is positioning itself to capitalize on the growing demand for AI-driven computing. The company plans to enter infrastructure-level refurbishment, enabling the delivery of AI-ready computing systems, server storages, and high-end desktops at affordable and sustainable cost points for global enterprises.

Brand Growth

The company's proprietary brand, Electronics Bazaar, now contributes 97% of revenue, with 100% of revenue backed by comprehensive warranty coverage. This reinforces customer trust and brand reliability in the refurbished ICT devices market.

Global Expansion

GNG Electronics has secured long-term spaces across India (primarily Mumbai), UAE, and the United States. These facilities will serve as high-capacity refurbishment and testing centers for advanced computing systems, including servers, data centers, hardware, and enterprise-grade IT infrastructure.

Financial Position

The company's net debt position improved to Rs. 158.00 crores following IPO proceeds utilization for debt repayment. This strengthened financial position is expected to support future growth initiatives.

Market Outlook

With the rise of AI and data-intensive workloads, GNG Electronics is well-positioned to benefit from the increasing demand for refurbished high-performance computing devices. The company's expansion into AI-ready systems aligns with global trends towards sustainable and affordable computing solutions.

GNG Electronics' strong Q2 and H1 FY26 performance, coupled with its strategic initiatives in the AI-driven computing space, positions the company for continued growth in the evolving global technology landscape.