GNG Electronics has unveiled an ambitious global expansion plan, aiming for a robust year-on-year revenue increase of over 25%. The company is set to broaden its footprint in the Information and Communications Technology (ICT) and consumer electronics sectors across new geographical markets.

Expansion Strategy

The company's growth strategy focuses on two key areas:

1. Market Expansion: GNG Electronics is actively pursuing opportunities in new geographical markets, leveraging its expertise in ICT and consumer electronics.

2. Operational Efficiency: The company is implementing measures to enhance its operational efficiency, which is expected to contribute to improved profit margins.

Product Diversification

As part of its growth strategy, GNG Electronics is emphasizing product diversification. This approach is aimed at:

• Expanding its product portfolio
• Catering to a wider range of customer needs
• Reducing dependence on specific product lines

Financial Performance

The company's recent financial results reflect its growth trajectory:

The financial results demonstrate strong growth across key metrics:

• Revenue from operations increased by 24.70% year-on-year in Q2 FY26
• EBITDA grew by 30.40% year-on-year in Q2 FY26
• PAT showed a significant increase of 41.60% year-on-year in Q2 FY26

Management Commentary

Mr. Sharad Khandelwal, Managing Director of GNG Electronics Limited, commented on the company's performance: "We are pleased to report another quarter of strong performance, with revenue growing 24.7% YoY and healthy improvement across all key profitability metrics. Our EBITDA margin expanded by 46 bps to 10.6%, while PAT margin improved by 88 bps to 7.4%, reflecting our continued emphasis on operational efficiency, stronger presence in existing markets, and strategic expansion into new geographies."

Future Outlook

GNG Electronics appears well-positioned for continued growth:

• The company reports ongoing momentum in demand for ICT products across global markets
• An expanding customer base and strong procurement network are strengthening its market position
• Advanced facilities across India, the UAE, and the USA reinforce the company's commitment to global quality standards

Mr. Khandelwal expressed confidence in sustaining strong revenue growth, stating, "As demonstrated in our past performance, we see ample growth potential across both domestic and international markets."

As GNG Electronics pursues its ambitious expansion plans, investors and market watchers will be keen to observe how effectively the company executes its strategy and maintains its growth trajectory in the competitive ICT and consumer electronics sectors.

GNG Electronics Limited has successfully utilized a significant portion of its Initial Public Offering (IPO) proceeds, marking a strategic move towards financial consolidation and growth. The company has deployed Rs. 383.11 crore out of the total Rs. 400 crore raised through its IPO, demonstrating efficient capital allocation across various objectives.

Debt Repayment

The company has prioritized debt reduction, allocating a substantial portion of the IPO funds towards this goal:

GNG Electronics repaid Rs. 220.00 crore of its own borrowings from various banks, including:

• Axis Bank
• DBS Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDFC First Bank
• Kotak Mahindra Bank

Additionally, the company transferred Rs. 100.00 crore to its subsidiary, Electronics Bazaar FZC, for debt repayment. This included:

• Rs. 72.45 crore to HDFC Bank
• Rs. 11.99 crore for channel financing from RAK Bank
• Rs. 15.54 crore for channel financing from Emirates International Bank

General Corporate Purposes and Issue Expenses

The company utilized Rs. 46.42 crore for general corporate purposes, primarily for vendor payments towards raw materials. Issue expenses amounted to Rs. 16.69 crore.

Monitoring Agency Report

CARE Ratings Limited, serving as the monitoring agency, has reported no deviation from the stated objectives of the IPO fund utilization. Notably, all fund utilization was completed well ahead of the March 31, 2026 timeline initially set.

Remaining Proceeds

The balance of the IPO proceeds, amounting to Rs. 16.89 crore, has been deployed in fixed deposits with HDFC Bank, ensuring liquidity for future use.

Corporate Developments

In addition to the IPO fund utilization, GNG Electronics has made several strategic decisions:

1. Enhanced Corporate Guarantee: The company has increased its corporate guarantee from AED 10 million to AED 20 million in favor of Dubai Islamic Bank. This guarantee supports the banking financing facilities availed by Electronics Bazaar FZC, a material subsidiary of GNG Electronics.

2. Increased Credit Facilities: The Board has approved an enhancement of existing credit facilities from HDFC Bank Limited. The overall sanctioned limits have been increased from Rs. 149.50 crore to Rs. 283.50 crore, including an additional Standby Letter of Credit (SBLC).

3. Material Related Party Transaction: A material related party transaction with Electronics Bazaar FZC, involving sales of goods or services up to Rs. 300.00 crore, has been approved by the Board, subject to shareholder approval.

4. New Office Space: The company has entered into a leave and license agreement for additional office space in Navi Mumbai, spanning 23,842 sq. ft., for a period of 60 months.

These strategic moves, coupled with the efficient utilization of IPO proceeds, position GNG Electronics for potential improved financial stability in the coming years.