GNG Electronics delivered impressive results for the start of FY27, with 32% revenue growth and 56% PAT growth, according to Motilal Oswal's research report dated July 30, 2026. The strong performance was driven by healthy demand conditions, approximately 12% ASP growth, and broad-based margin expansion across the company's operations.
Gross margin expanded significantly by approximately 330 basis points year-on-year to 24.6%, supported by procurement efficiencies, higher international contribution, and better realizations. As reported by Motilal Oswal, this margin expansion reflects the company's operational improvements and favorable market conditions during the reporting period.
AI-led computing demand, persistent memory shortages, and rising new-PC prices continue to widen the affordability gap, reinforcing the structural demand outlook for refurbished devices across enterprise and education segments. According to the research report, these market conditions are expected to benefit GNG Electronics' business model and growth trajectory.
Motilal Oswal has raised gross margin estimates by approximately 100 basis points, resulting in 7-9% higher PAT estimates over FY27–29. The brokerage now models 195 basis points gross margin expansion over FY26–29E, driving projected revenue, EBITDA, and PAT CAGR of 27%, 36%, and 40% respectively. The company maintains its BUY rating with a target price of ₹700, set at 30x FY28 P/E.
