GNG Electronics shares surged 13% on Wednesday, November 4, hitting a record high of ₹776.25 on the BSE, as investors reacted to the company's strong September quarter results for FY27. The stock opened at ₹735.45, compared with its previous close of ₹686.50, before climbing to an intraday high of ₹776.25. This rally has extended the stock's impressive run, with GNG Electronics shares now soaring 225% from their 52-week low of ₹239 recorded in January 2026. The stock has also delivered strong short-term performance, gaining 7% in the past month and 49% over the past three months, with its one-year performance showing an exceptional 119% surge. Emkay Global Financial has now issued a buy rating on the stock with a target price of ₹850, representing a 17% increase from their previous target of ₹725, based on 30x Sep-28E PER valuation.
GNG Electronics delivered impressive financial results for the September quarter, with net profit surging 72.5% year-on-year to ₹56.4 crore compared to ₹32.7 crore in the corresponding quarter last year. According to latest reports, the company's revenue climbed 42% to ₹624.8 crore from ₹439.9 crore in the year-ago period, reflecting strong business growth during the quarter. The financial performance showed significant growth metrics, with revenue increasing by ₹185 crore year-on-year while net profit rose by ₹23.7 crore compared to the previous year. For the first half of FY27, revenue increased 37.9% YoY to ₹1,037.3 crore, while EBITDA rose 79.1% to ₹146.8 crore and PAT grew 66.6% to ₹85.3 crore. Emkay Global Financial reports that consolidated revenue grew 42% YoY, driven by ~29% volume growth, with momentum sustained across India and international markets.
Despite strong top-line growth, the company achieved significant margin improvement during the quarter. EBITDA more than doubled, rising 100.7% to ₹93.9 crore from ₹46.8 crore a year earlier, with EBITDA margins expanding by 439 basis points to 15% from 10.6% in the corresponding quarter last year. As reported by LiveMint, PAT margin increased by 159 basis points to 9% from 7.4%, while basic earnings per share stood at ₹4.94, compared with ₹2.86 in the year-ago quarter. The company highlighted a 515-basis-point expansion in gross margin to 25% in Q2FY27, with gross margin improving by 438 basis points to 25% for H1FY27. Emkay Global Financial notes that EBITDA expanded to 14.9% (vs 12% in Q1FY27), ~240bps above their estimate, with management raising FY27 revenue growth guidance to 40% (vs 30% earlier) and expecting net margin expansion of 150bps YoY (vs 75-100bps guided earlier). Management reiterated that strategic inventory decisions contributed 125-150bps to margin expansion, with higher inventory viewed as a strategic lever to support scale and improve product availability.
Incorporated in 2006, GNG Electronics Limited provides refurbishing services for laptops, desktops and information and communication technology (ICT) devices across India and international markets. During the quarter, the company expanded its presence to 55 countries, increased customer touchpoints to 5,542 and grew its supplier base to 820. As reported by LiveMint, the company also expanded its EB Elite Program to 152 partners and inaugurated its first exclusive Electronics Bazaar store for small and medium-sized business (SMB) customers in Jaipur. Managing Director Sharad Khandelwal commented that the global ICT industry was witnessing a structural shift towards professionally refurbished computing solutions, driven by rising device prices, supply constraints and increasing focus on affordability and sustainability. The company remains confident about long-term growth opportunities in the refurbished ICT industry, supported by its integrated global platform and expanding distribution network.
According to technical analysis from Anand Rathi Share and Stock Brokers Limited, a breakout has been witnessed above the 730 resistance level, and the stock is comfortably sustaining above this breakout zone, indicating improving bullish sentiment. The hourly RSI is displaying strength, suggesting that positive momentum is supporting the ongoing price action. The earlier resistance zone of 720–730 is now expected to act as an important support area, as long as the stock sustains above this zone, the bullish outlook remains intact. Traders may consider accumulating the stock on dips towards the 730–720 range rather than chasing the price at higher levels. Any correction towards this support band, followed by signs of buying interest, could offer a favourable entry opportunity, with a sustained hold above 720 being important to maintain the positive technical structure. Emkay Global Financial maintains their BUY rating while raising the target price to ₹850, factoring in the robust growth outlook, margin expansion, and increasing adoption of refurbished devices. The brokerage expects margins to sustain, supported by a significant increase in new laptop prices (up ~80% YoY), providing headroom (~30% of new devices vs ~50% typically seen in refurbished smartphone and used cars), backed by the Electronics Bazaar brand and a 1-3Y warranty.
