GNG Electronics' 11.97% margin ranks second-lowest among 21 IT peers
Consolidated Q1FY27 net profit was Rs 28.93 cr, while management said its global reach expanded to 49 countries.
Filed 30 Jul 2026, 15:49 IST · after market close · GNG Electronics Ltd (EBGNG)
Key takeaways
- Interest expense of Rs 13.86 cr was a sizeable deduction between GNG Electronics' Rs 49.37 cr operating profit and Rs 35.74 cr pre-tax profit.
- The consolidated operating margin of 11.97% was 6.18 percentage points below the 18.15% median of 21 reported IT peers.
- Management said the company expanded its reach to 49 countries and more than 5,100 customer touchpoints during Q1FY27.
Price around the results
Interest absorbed part of operating profit
GNG Electronics reported consolidated revenue of Rs 412.46 cr and operating profit of Rs 49.37 cr in Q1FY27. Interest expense of Rs 13.86 cr and depreciation of Rs 3.28 cr reduced operating profit to pre-tax profit of Rs 35.74 cr. Other income was Rs 3.51 cr, so it was not the primary source of reported profit; net profit was Rs 28.93 cr.
Operating margin trails the IT peer set
The 11.97% operating margin placed GNG Electronics 6.18 percentage points below the 18.15% median among 21 IT peers that had reported the quarter. The company ranked second from the bottom on this measure. With expenses at Rs 363.10 cr, the main operating question for subsequent quarters is whether the business can lift margin from this level.
Management highlighted wider distribution reach
Management said the company expanded its global presence to 49 countries and increased customer touchpoints to more than 5,100 during the quarter. It also said the EB Elite Program was launched to strengthen the distribution ecosystem. Management said it remains confident in the long-term opportunity in refurbished ICT and is committed to sustainable growth and improved profitability.
Results were filed after market close
The results were filed at 15:49 IST on 30 July 2026, after market close. No post-results stock reaction is covered for this release.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹412 cr |
| Other income | ₹4 cr |
| Expenses | ₹363 cr |
| Operating profit | ₹49 cr |
| Operating margin (%) | 11.97% |
| Interest | ₹14 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹36 cr |
| Tax | ₹7 cr |
| Net profit | ₹29 cr |
| EPS (₹) | ₹2.54 |
Operating margin of 11.97% compares with a Information Technology sector median of 18.15% across 21 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Management remains confident in the long-term opportunity for the refurbished ICT industry.
- The company remains committed to sustainable growth, improved profitability and long-term stakeholder value.
Expansion
- The company expanded its global reach to 49 countries during the quarter.
- The company increased customer touchpoints to more than 5,100.
New initiatives
- The company launched the EB Elite Program to strengthen its distribution ecosystem.
What to watch
- Whether operating margin improves from 11.97% in the next reported quarter.
- Whether interest expense remains below the Rs 13.86 cr reported in Q1FY27.
- Whether the company reports reach beyond 49 countries and more than 5,100 customer touchpoints.