GNG Electronics Q2 Revenue Rises 42% to ₹624.8 Crore

GNG Electronics Limited reported Q2 FY27 revenue of ₹624.8 crore, up 42% year-on-year from ₹439.9 crore, supported by growth across its India and international refurbished-device operations. The company also recorded higher gross and EBITDA margins, while PAT increased 72.5% to ₹56.4 crore.

What did GNG Electronics report for Q2 FY27?

GNG Electronics reported its best-ever quarterly revenue in the quarter ended September 2026, according to its Q2 FY27 earnings release dated November 3, 2026. Consolidated revenue from operations reached ₹624.8 crore, compared with ₹439.9 crore in Q2 FY26, representing a 42.0% year-on-year increase.

The company said this was its strongest quarterly growth since listing. Its first-half FY27 revenue stood at ₹1,037 crore, up 38% from the corresponding period of the previous financial year. Management described the growth as broad-based across geographies, customer segments and sales channels.

How did India and international operations contribute?

GNG Electronics said India revenue grew 45% year-on-year during Q2 FY27, while international revenue increased by about 40%. The company did not provide absolute revenue figures for either geography in the disclosed information, but said both markets contributed to the overall quarterly expansion.

The company operates in the refurbished-device market and reported growth across customer segments and channels. Management said it had expanded operating capacity in both India and the United Arab Emirates. India space was nearly doubled, while UAE facilities increased from about three to four locations to about eight, according to the earnings-call discussion.

This capacity expansion is relevant because the company is reporting faster sales growth in both domestic and overseas markets. The disclosed facility additions indicate that GNG Electronics has been building operational infrastructure alongside revenue growth, although it did not disclose capacity utilisation or capital expenditure figures.

Why did GNG Electronics' margins improve in the quarter?

GNG Electronics reported gross margin of 25.1% in Q2 FY27, an improvement of 515 basis points from a year earlier. EBITDA was ₹93.9 crore, up 100.7% year-on-year, and the EBITDA margin improved by 439 basis points to 15.0%.

The company also reported a PAT margin of about 9%, up 159 basis points year-on-year, while profit after tax rose 72.5% to ₹56.4 crore. These metrics show that profit growth outpaced revenue growth during the quarter, supported by the reported margin expansion.

For the first half of FY27, gross margin was 24.9%, up 438 basis points year-on-year. The company did not disclose a detailed reconciliation of margin changes in the information provided. It did, however, identify rising memory prices as a near-term risk in its investor presentation.

What did management say about tax and full-year growth?

GNG Electronics said its tax rate increased to about 18% in the first half of FY27, compared with 10.6% for the full FY26. Chief Financial Officer Rakesh Jhunjhunwala attributed the increase to stronger profitability from the India business.

Management has guided for a full-year FY27 tax rate of 14% to 16%. A higher effective tax rate can affect the conversion of operating profit into net profit even when revenue and margins improve. The company did not provide a full-year revenue target in the disclosed material, but said it had raised its full-year growth outlook.

The Q2 figures are unaudited. GNG Electronics released the earnings material and made the earnings-call audio recording available on November 3, 2026, in line with its Regulation 30 disclosure requirements.

How do the results affect investors and the refurbished-device sector?

For investors, the quarter provides evidence of strong sales momentum, with revenue up 42% and EBITDA up 100.7%. The improvement in gross margin and EBITDA margin is also significant because it indicates better profitability alongside expansion in India and international markets.

However, the reported first-half tax rate of about 18% and the company's 14% to 16% full-year guidance remain important factors in assessing net-profit performance. Rising memory prices, flagged by the company as a near-term risk, are another operational issue relevant to margins and device sourcing.

At the industry level, GNG Electronics' results point to continued activity in the refurbished-device market across domestic and overseas channels. The company's facility additions in India and the UAE show that operational scale and supply-chain capacity remain important as sellers serve multiple geographies.

Conclusion

GNG Electronics delivered Q2 FY27 revenue of ₹624.8 crore, up 42% year-on-year, with EBITDA of ₹93.9 crore and PAT of ₹56.4 crore. Growth was reported across India and international operations, while gross margin reached 25.1% and EBITDA margin reached 15.0%.

Investors will watch whether the company sustains revenue growth and margin gains through the remainder of FY27. Key disclosed variables include the 14% to 16% full-year tax-rate guidance, the impact of rising memory prices, and the execution of expanded capacity in India and the UAE.