India's Information and Communications Technology (ICT) market presents significant growth opportunities, valued at US$43 billion in FY24 and expected to reach US$75 billion by FY29. According to The Financial Express, this growth is driven by rapid expansion in Artificial Intelligence, cloud computing, and data centres. The opportunity extends beyond infrastructure build-out, as rising memory prices are making refurbished electronics relatively cheaper while technology distributors expand into data centre business solutions. The digital economy is entering a phase where demand is moving beyond software and connectivity, with rising digital adoption, AI, cloud computing, 5G and rapid build-out of digital infrastructure expected to support this growth trajectory.
Rashi Peripherals operates as an ICT distributor with 57 branches and 50 service centres across 20 regions, reaching 706 locations. The company manages two main verticals: Personal Computing and Enterprise Solutions (PES) contributing 66.3% of revenue, and Lifestyle and IT Essentials (LIT) contributing 33.7%. In Q1FY27, the company acquired a majority stake in VDA Infosolutions, generating ₹850 crore in FY26, and formed a 74:26 joint venture with Restar for semiconductor development targeting ₹950 crore revenue within three years. The company has partnered with WEKA to expand into AI infrastructure and high-performance workload management, while its alliance with Dell Technologies contributed approximately 5% to the business in Q1FY27, exceeding internal estimates.
GNG Electronics operates under the 'Electronics Bazaar' brand, selling refurbished devices with one to three-year warranties to 49 countries. The company sold 108,000 laptops in Q1FY27, accounting for 81% of revenue, with average selling prices rising 12% year-on-year to ₹30,763. According to The Financial Express, memory component prices surged 5-10% in Q1FY27, with DDR memory prices increasing nearly fivefold since October 2025, creating substantial tailwinds for refurbished device pricing. The company has expanded its global footprint to more than 5,130 customer touchpoints and maintains a sourcing network including 773 suppliers across regions, with India contributing 36% of revenue in Q1FY27.
Rashi Peripherals reported 61.9% revenue growth to ₹5,101.9 crore in Q1FY27, with EBITDA surging 50% to ₹155.3 crore and net profit rising 69.5% to ₹104.6 crore. The company maintains a 20% CAGR growth trajectory based on its 20-year track record. GNG Electronics achieved 32.1% revenue growth to ₹412.5 crore with EBITDA growing 50.4% to ₹52.9 crore and net profit increasing 56.2% to ₹28.9 crore. Management upgraded GNG's FY27 guidance to 30% revenue growth and increased net profit margin targets to 0.75-1.0%, while the company maintained a strategic inventory of approximately ₹700 crore to hedge against rising hardware costs.
According to The Financial Express, Rashi Peripherals trades at 17.4x P/E ratio with 24% ROCE and 16.8% ROE, while GNG Electronics commands a 45.2x P/E ratio with 20.3% ROCE and 26.8% ROE. The companies offer different investment approaches: Rashi focuses on data centres, AI infrastructure, and semiconductors with higher valuation comfort, while GNG benefits from immediate memory price tailwinds but trades at a premium. Both companies are positioned to benefit from India's evolving technology cycle, with Rashi targeting higher-value solutions and GNG capitalizing on refurbished market opportunities. After strong Q1FY27 performance, GNG now trades at nearly double the industry median P/E, while Rashi offers relative valuation comfort despite its growth trajectory.
