GNG Electronics Q2 profit rises 73% as revenue grows 42%

GNG Electronics Limited reported consolidated profit of Rs 56.351 crore for the quarter ended September 30, 2026, up 73% from Rs 32.661 crore a year earlier, as revenue from operations rose 42% to Rs 624.811 crore. Profit before tax increased 89% to Rs 68.080 crore in the unaudited results approved on November 3, 2026.

How did GNG Electronics perform in the September 2026 quarter?

GNG Electronics increased total income to Rs 625.591 crore in the quarter ended September 30, 2026, from Rs 440.159 crore in the corresponding quarter of 2025. Revenue from operations accounted for Rs 624.811 crore, compared with Rs 439.918 crore a year earlier, while other income rose to Rs 0.780 crore from Rs 0.241 crore.

Profit for the period rose by Rs 23.690 crore year on year to Rs 56.351 crore, and basic as well as diluted earnings per share increased to Rs 4.94 from Rs 2.86. Tax expense was Rs 11.729 crore, compared with Rs 3.458 crore, while total comprehensive income increased to Rs 61.700 crore from Rs 31.727 crore.

The September quarter was also higher than the preceding June 2026 quarter. Revenue from operations rose from Rs 412.461 crore in the June quarter to Rs 624.811 crore, while profit for the period increased from Rs 28.930 crore to Rs 56.351 crore. Profit before tax nearly doubled sequentially from Rs 35.741 crore to Rs 68.080 crore.

What changed in GNG Electronics’ costs and profitability?

GNG Electronics reported total expenses of Rs 557.512 crore in the September 2026 quarter, up from Rs 404.040 crore a year earlier, a slower increase than the Rs 185.432 crore rise in total income. This left profit before tax at Rs 68.080 crore, against Rs 36.119 crore in the September 2025 quarter.

The most material movement within expenses was a negative Rs 198.563 crore change in inventory, compared with a positive Rs 136.288 crore expense in the prior-year quarter. Direct cost increased to Rs 666.703 crore from Rs 215.974 crore, but the inventory movement reduced reported total expenses during the latest quarter.

Finance costs rose to Rs 22.036 crore from Rs 8.438 crore, employee benefits expense increased to Rs 38.845 crore from Rs 22.386 crore, and other expenses reached Rs 24.711 crore from Rs 18.730 crore. Depreciation and amortisation increased to Rs 3.780 crore from Rs 2.224 crore, showing that higher income and the inventory movement more than offset these cost increases.

For the six months ended September 30, 2026, revenue from operations was Rs 1,037.272 crore, compared with Rs 752.197 crore in the corresponding six months of 2025. Profit for the six-month period rose to Rs 85.281 crore from Rs 51.181 crore, although finance costs increased to Rs 35.893 crore from Rs 19.094 crore.

How did working capital affect GNG Electronics’ cash flow?

GNG Electronics recorded a net operating cash outflow of Rs 96.749 crore for the six months ended September 30, 2026 despite profit before tax of Rs 103.821 crore. Operating profit before working-capital changes was Rs 155.950 crore, but the cash requirement from working-capital items exceeded that amount.

Inventory absorbed Rs 168.536 crore of cash in the six-month period, while trade receivables absorbed Rs 99.380 crore and financial and other current assets absorbed Rs 25.239 crore. These movements were partly offset by a Rs 39.281 crore increase in trade payables, a Rs 9.156 crore increase in provisions and a Rs 7.100 crore increase in current tax liability.

Financing activities generated Rs 165.674 crore during the period, including a Rs 168.479 crore increase in working-capital loans and Rs 39.945 crore in long-term borrowing proceeds. Finance charges paid were Rs 33.050 crore, while long-term borrowing repayments totalled Rs 3.693 crore.

Cash and cash equivalents in the consolidated cash-flow statement rose to Rs 183.784 crore at September 30, 2026 from Rs 118.238 crore at the start of the year. The closing cash-flow balance included Rs 92.188 crore in current accounts, Rs 2.008 crore of cash on hand, Rs 1.161 crore in cash-credit accounts and Rs 88.426 crore in bank balances other than cash and cash equivalents.

What changed in GNG Electronics’ balance sheet?

GNG Electronics’ consolidated total assets rose to Rs 1,626.858 crore at September 30, 2026 from Rs 1,253.982 crore at March 31, 2026. Current assets increased to Rs 1,529.195 crore from Rs 1,162.383 crore, whereas non-current assets increased to Rs 97.663 crore from Rs 91.599 crore.

Inventory rose to Rs 911.646 crore from Rs 743.110 crore over the six months, consistent with the Rs 168.536 crore cash outflow reported for inventory. Trade receivables increased to Rs 306.229 crore from Rs 206.849 crore, and other current assets rose to Rs 127.537 crore from Rs 94.187 crore.

Current borrowings increased by Rs 168.479 crore to Rs 572.288 crore, while non-current borrowings rose to Rs 38.189 crore from Rs 1.937 crore. Total equity increased by Rs 94.248 crore to Rs 853.581 crore, while total liabilities increased by Rs 278.627 crore to Rs 773.276 crore.

What does GNG Electronics disclose about its business and guarantees?

GNG Electronics reports one business line, Information and Communication Technologies Device, or ICT Device, and therefore does not identify reportable business segments under Indian Accounting Standard 108. It states that revenue is generated from domestic sales and exports, treated as geographical segments, but the September 2026 results do not provide separate revenue figures for those geographies.

The unaudited consolidated results were reviewed by Shankarlal Jain & Associates LLP. The auditor said nothing had come to its attention that caused it to believe the statement failed to make required disclosures or contained a material misstatement; the report describes the limited review as providing moderate assurance and being narrower than an audit.

GNG Electronics also disclosed expanded corporate guarantees for material subsidiary Electronics Bazaar FZC to support banking-finance facilities. Revised guarantee limits are AED 30 million with Abu Dhabi Islamic Bank PJSC, AED 25 million with The National Bank of Ras Al Khaimah PJSC, and AED 30 million with Commercial Bank of Dubai.

The company said the guarantees were issued at arm’s length and that promoters, the promoter group and group companies had no interest in the transactions. It said there was no present impact beyond disclosure in the financial statements as a contingent liability, while the enhanced facilities are proposed for Electronics Bazaar FZC.

Conclusion

GNG Electronics delivered higher September-quarter revenue and profit, with revenue from operations rising 42% and profit for the period increasing 73%. The result coincided with a Rs 168.536 crore rise in inventory, a Rs 99.380 crore increase in receivables and a Rs 96.749 crore operating cash outflow for the first six months.

The next results will show whether the inventory of Rs 911.646 crore and receivables of Rs 306.229 crore convert into operating cash generation. Investors can also track the proposed enhanced facilities for Electronics Bazaar FZC, supported by revised guarantees ranging from AED 25 million to AED 30 million.