GNG Electronics expands revenue 51.48% QoQ, but margin trails IT peers
Revenue grew faster than expenses, lifting operating margin by 2.93 percentage points, while a lower tax rate amplified profit growth.
Filed 03 Nov 2026, 16:10 IST · after market close · GNG Electronics Ltd (EBGNG)
Key takeaways
- Consolidated revenue rose +51.48% QoQ while operating margin widened 2.93 percentage points to 14.90%.
- Net profit increased +94.78% QoQ to Rs 56.35 cr, helped by a 1.83 percentage-point lower tax rate.
- GNG Electronics' 14.90% operating margin was 4.37 percentage points below the 19.27% median for 45 reporting IT peers.
Price around the results
Revenue growth translated into operating leverage
In the consolidated Q2FY27 results, revenue grew +51.48% QoQ while expenses rose +46.43%, allowing operating profit to increase +88.62%. The faster revenue growth widened operating margin by 2.93 percentage points from Q1FY27. Management said the company continued to expand its domestic and international presence during the quarter.
Lower tax aided profit, while interest costs rose
The tax rate fell 1.83 percentage points QoQ, helping net profit grow +94.78%, faster than operating profit. Interest expense rose +59.02%, partly offsetting the operating improvement. Other income contributed only 1.15% of pre-tax profit, so reported earnings were not materially dependent on that line.
Margin improved sequentially but remains below the peer median
Operating margin increased from 11.97% in Q1FY27 to 14.90% in Q2FY27, the direction being sequentially positive in the reported two-quarter trend. Even after that improvement, the margin was 4.37 percentage points below the 19.27% median among 45 Information Technology peers that had reported the quarter. The company ranked 15th from the bottom on this comparison.
Management points to wider reach and industry constraints
Management said the company now reaches 55 countries through 5,542 customer touchpoints and 820 suppliers, and that it opened its first exclusive Electronics Bazaar store for SMB customers in Jaipur. The presentation said EB Elevate dealer meets covered 10 cities, while the EB Elite Program had 152 enrolled partners during the quarter. Management also said rising memory prices and supply constraints are affecting the industry and described them as a near-term catalyst, while expressing confidence in the long-term refurbished ICT opportunity.
Results were filed after market close
The company filed its consolidated results after market close on 03 Nov 2026. A post-results stock reaction was therefore not yet available to assess.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹625 cr | ₹412 cr | +51.48% |
| Other income | ₹1 cr | ₹4 cr | -77.78% |
| Expenses | ₹532 cr | ₹363 cr | +46.43% |
| Operating profit | ₹93 cr | ₹49 cr | +88.62% |
| Operating margin (%) | 14.90% | 11.97% | — |
| Interest | ₹22 cr | ₹14 cr | +59.02% |
| Depreciation | ₹4 cr | ₹3 cr | +15.24% |
| Profit before tax | ₹68 cr | ₹36 cr | +90.49% |
| Tax | ₹12 cr | ₹7 cr | +72.25% |
| Net profit | ₹56 cr | ₹29 cr | +94.78% |
| EPS (₹) | ₹4.94 | ₹2.54 | +94.49% |
Operating margin of 14.90% compares with a Information Technology sector median of 19.27% across 45 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company continued strengthening its domestic and international presence during the quarter.
Guidance & outlook
- Management remains confident in the long-term growth opportunity for the refurbished ICT industry.
- The company identifies affordability, reliability and sustainability as the drivers of the underlying opportunity.
Expansion
- The company expanded its reach to 55 countries, with 5,542 customer touchpoints and 820 suppliers.
- The company inaugurated its first exclusive Electronics Bazaar store for SMB customers in Jaipur.
New initiatives
- EB Elevate dealer meets were conducted across 10 cities.
- Chai Pe Charcha sessions were conducted across more than 70 towns in 17 states and union territories.
- The EB Elite Program, launched in Q1, had 152 partners enrolled during the quarter.
Problems & risks
- Rising memory prices and supply constraints are affecting the industry and providing a near-term catalyst.
- The industry faces supply-side constraints in the global memory market.
What to watch
- Whether operating margin holds above 14.90% after the Q2FY27 improvement.
- Whether interest-cost growth moderates from +59.02% QoQ.
- Whether revenue growth remains ahead of expense growth after the +51.48% versus +46.43% gap in Q2FY27.