GNG Electronics Ltd (NSE: EBGNG) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Sharad Khandelwal — Managing Director
Raakesh Jhunjhunwala — Group CFO
Ajay Kumar Parasmal Pancholi — Director and Designated Partner
Analysts:
Avinash Karumanchi — Analyst
Manish Ostwal — Analyst
Pritesh Chheda — Analyst
Sunil Jain — Analyst
Atul Mehra — Analyst
Nikhil Purohit — Analyst
Nitin Shah — Analyst
Ajay Nandalwal — Analyst
Prateek Chaudhary — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the GNG Electronics Limited Q3 and 9 month FY26 earnings conference call. This call may contain forward looking statements about the company that are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing STAR and then zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Avinash Karumanchi from Motila Loswal. Thank you. And over to you Sir.
Avinash Karumanchi — Analyst
Thank you Darwin Good evening everyone. On behalf of Motilal Oswal Financial Services, I welcome you to Q3FY26 earnings call of GNG Electronics. Joining us on the call today are Mr. Shrut Khandewal, Founder and Managing Director, Mr. Ajay Pancholi, Director Mr. Takesh Jhunjanwala, CFO and Mr. Rohit Agarwal from MD’s office. I’ll now hand over the call to Saraji for his opening remarks. Over to you sir.
Sharad Khandelwal — Managing Director
Thank you everyone. I welcome you to the third uninstall of GNG electronics. Q3. FY26 has been another strong quarter for us. The business delivered robust growth along with a clear improvement in profitability. Revenue grew by 20% year on year and profit after tax more than doubled compared to the same period last year. This performance reflects consistent execution across sourcing, refurbishment and sales, and it builds on the momentum we have been seeing over the last past several quarters. What’s particularly encouraging is not just how fast we are growing, but how well we are growing. As volumes have scaled, margins have improved and profitability has grown faster than revenues.
This clearly demonstrates the operating leverage inherent in our business models. Let me now share a few updates on the broader industry. The global technology landscape continues to evolve in a way that is increasingly favorable for the refurbished PC segment. Over the past few quarters, rising memory and storage prices have begun to materially impact both the cost structure and availability of new PCs. Some of you may recall that during our roadshows in July last year, I mentioned that by the end of 2025, AI adoption and real world use cases would be meaningfully higher. That expectation has clearly played out.
As AI adoption accelerates, investments in AI infrastructure have surged. A growing share of global memory manufacturing capacity, especially high bandwidth memory HBM is now being diverted towards AI and data centers. This shift has tightened supply for conventional DRAM and storage used in new PCs and prices have risen sharply as a result. To put this into perspective as DDR5.8GB RAM prices increased from $23.35 on 1st October 2025to $86.61 by 1st January 2026, nearly a 270 percentage increase. Similarly, DDR5.16GB RAM prices rose from $54.85 to $189.99 over the same period, a 3.4 times increase. These are substantial increases.
These are lead increases inevitably will flow through to the pricing of brand new PCs globally. Also, according to IDC, global UPC shipments stood at about 284.7 million units in 2025. Against this backdrop, IDC estimates that shipments in 2026 could decline by up to 8.9% due to memory shortages and rising prices. This environment is naturally driving higher acceptance and penetration of refurbished PCs driven by affordability and availability. Adding to this, IDC also note that nearly a quarter of global PC shipments come from manufacturers outside the top five brands. Many of these players are likely to face significant challenges in accessing memories even at elevated prices.
This could lead not only to hire prices but also to outright supply shortages in new PCs, further accelerating demand for repurposed systems. We are already seeing the impact new PCs have increased by New PC prices have increased by roughly 20% so far and we expect further increases ahead. This is clearly shifting customer preference towards refurbished PCs and expanding the total addressable market for our industry. We fully intend to capitalize on these favorable tailwinds. As a result, refurbished pieces are playing an important increasing role in meeting global computing demand, especially for enterprises and institutions that value faster deployment, reliable performance and cost efficiency.
Customers are increasingly recognizing that refurbished systems can meet the needs without compromise. We have seen similar transitions in other industries as well. In mature automotive markets, used car sales are more than twice the volume of new car sales in smartphones, repurposed devices have grown from a niche segment to a meaningful share of global shipments. The PC market is now following a similar trajectory as devices become more expensive, technologically stable and longer lasting. Again this backdrop, our focus at GNG has remained very clear, secured supplies well in advance, execute refurbishment efficiently, and ensure continuity for customers across geographies.
This disciplined execution has enabled us to consistently meet demand even as market dynamics continue to evolve. Overall, our quotacy performance reflects the strength of our execution in a changing industry landscape and positions as well as customer demand patterns continue to shift. Let me now turn to some company specific updates. One of our most important development has been the continued validation of our module. Devices refurbished by GND deliver an experience that is as good as new, both in terms of performance and aesthetics at roughly 1/3 the price of a new device. This is backed by a credible and proven warranty of up to three years.
This powerful combination of quality assurance and affordability continues to resonate strongly with customers and is driving both top line growth and margin expansion. Our warranty framework is now well established and remains unparalleled in the industry. Three years in India and one year across international markets. This has significantly strengthened customer confidence which is reflected in higher repeat orders and wider deployment of refinary systems for long term use. I would like to mention that we initiated this warranty. We pioneered this concept of warranty to increase reliability in refurbished computers. Computers refurbished by us on the international front.
We continue to expand more geographically and in terms of depth. Today we supply to 44 countries supported by more than 4745 customer touchpoints across enterprises, institutions, distributors and general partners. As this footprint grows, repeat business is increasing, reinforcing the growing acceptance of both refurbished computing and Electronics Bazaar brand globally. We have also initiated targeted digital outreach programs particularly in the US and are extending similar efforts in India. These initiatives are helping improve brand visibility, deepen customer engagement and strengthen our sales pipeline. To support this growth, we have continued to invest in our people. During the quarter.
We strengthened our senior leadership, middle management and engineering teams ensuring that the organization remains well equipped to scale sustainably. I would also like to Highlight that nearly 100% of sales are now under our own brand Electronics Bazaar. This reduced dependence on external brands strengthen customer recall, reinforces trust and supports long term value creation. I am happy to report that devices refurbished by Electronic Bazaar carries specific premium and distinct positioning in the market. Finally, given the ongoing memory shortages and rising prices of new PCs, we believe it is critical to maintain elevated inventory levels. This ensures continuity of supply for our customers and is essential for sustaining both sales growth and margin expansion during this period of structural supply constraints.
In summary, we believe we are well positioned to navigate the current environment and to continue delivering strong high quality growth in the quarters ahead. I would like to hand over now to our CFO Akeshg to speak on the performance of Quarter three. Thank you very thank you all very much.
Raakesh Jhunjhunwala — Group CFO
Thank you. Shaji Good evening everyone. Happy to inform you all. We have had a Q3 reflects another. Quarter of consistent execution and disciplined growth of GNG Electronics with a clear improvement in profitability alongside strong revenue expansion. During the quarter, consolidated revenue increased to rupees 4872.2 million representing a year on year growth of 40.3%. Growth remained broad based driven by steady demand and continued traction across both domestic and international markets, particularly Middle east, the United States and Europe. Operating performance continued to improve as EBITDA for the quarter stood at Rupees 545.7 million with EBITDA margin expansion to 11.2% from 9.2% in Q3FY25 translating into a strong 200bps increase. This improvement reflects efficient cost absorption and disciplined education.
As the business scaled. Profit after tax. Has more than doubled to rupees 386.9 million in Q3FY26 while revenues grew by 40.3% year on year supported by margin expansion and operating leverage. PAT margin for the quarter stood at 7.9% compared to 5.5% in Q3FY25. On a YTD basis we have delivered 30% year on year revenue growth along with 157bps improvement in PAT reflecting the strength and scalability of our business model. Thank you.
operator
Thank you. I now hand the conference over to Mr. Ajay Pancholi. Over to you sir.
Ajay Kumar Parasmal Pancholi — Director and Designated Partner
Hi, Good evening everyone. Thanks once again and welcome to the conference call for this quarter update. I would want to highlight a few important points for your consideration. First being that today we supply to over 44 countries which was about 38 countries at the beginning of last year and has in fact moved from 35 countries to 45 countries in the last 12 months. So that has expanded our outreach and acceptability of our products across different geographies. Second aspect worth highlighting is on the distribution front we are now supported by over 4745 customer touchpoints across enterprises, institutions, distributors and channel partners which was about 4,150 at the beginning of the year.
Just from a capacity perspective or throughput perspective, it’s important to highlight our employee strength has a great to just about 1900 which was about 1194 at the beginning of the year and which was 1500 at the beginning of the quarter. So importantly it’s worthwhile to highlight that we have added over 600 engineers and also substantial strength has been added to the sales and marketing team. So this lays the foundation for the growth that we have delivered and which we envisage to deliver over the Next couple of quarters and going forward. The third important. The fourth important point I would want to highlight is as related party transactions.
We currently have no related party transactions within the group other than the sales that happens to our 100% subsidiary. So there is no. The reason why I’m highlighting this is that this was one of the important points during the time of IPO and hence for your consideration I’m highlighting this aspect. And the fifth point which I would want to add is on the warranty cost, the treatment and provisioning norm that we are thinking the way forward. The warranty cost is accounted for as part of cost of goods sold and is therefore already factored in our reported gross margins.
As indicated earlier, the warranty cost has been in the range of 10 to 12 basis points and which we account for on a regular basis through our P and L. Warranty costs continue to remain structurally low supported by our in house refurbishment processes, quality controls and post sales service framework. Additionally, as a matter of prudence and conservative accounting approach, the company has made a cumulative provision of 1.3 crores over and above actual warranty costs incurred to date to our P and L. So this is an incremental provision that we are taking and we will continue to enhance this provision over a period of time as the sale continues to grow.
On this note I would want to hand it over to Sharaji who want to make few incremental important updates for your consideration. Over to you, Sharaji.
operator
Sharad sir, your line is unmuted. You may proceed. Sharad sir, if you are speaking right. Now, you are not audible. Ladies and gentlemen, please stay with us while we determine the issue with the line. Yes, sharonji.
Sharad Khandelwal — Managing Director
Am I audible now? Hello. Hello. Am I audible now? Yeah. So I would like to make a statement. I would like to make a statement on. Am I audible? Yeah. So I would like to make a. Statement on our sales channel organization.
Raakesh Jhunjhunwala — Group CFO
Can the operator confirm please? Can the operator confirm if Saraji and I am. I am live. Can the operator confirm please?
operator
Ladies and gentlemen, we thank you for your patience. We have reconnected with Sharad sir. Sir, you may proceed.
Sharad Khandelwal — Managing Director
Yeah, thank you. I would like to make a statement on our sales channel augmentation and further furtherance. Our objective to strengthen distribution reach and make our products available across the length and breadth of India. Include including tier 2, tier 3 cities and emerging towns. We have entered into two separate strategic partners partnerships with leading technology technology distributors. We have partnered with one of the world’s largest technology distributors and the second largest distributor in India. And separately partnered the fifth largest technology distributor in India. While we continue to scale our existing channels, these partnerships significantly enhance our ability to address the growing demand for value driven and eco conscious technology solutions from large enterprises, SMBs, education institutions and other consumer segments.
Importantly, the fact that these two distributors who have traditionally been focused primarily on the distribution of brand new computers, will now also distribute our refurbished products demonstrates the increasing acceptance, scalability and long term potential of the refurbishment industry in general and Electronics bazaar GND Electronics in particular. We have consistently maintained a strategy of non dependence on any single customer or channel and these additions further strengthen the resilience of a distribution model while enabling deeper market penetration. As you can imagine, distributed of this scale and reputation partner only with the companies that have strong credibility processes and an established track record.
We believe the decision to partner with us independently is a strong validation of our product quality warranty framework and overall value proposition. We are honored to partner with both these very large distributors and look forward to scaling these relationships meaningfully over the coming years. The secondary reuse market, including refurbished market is growing rapidly across the globe and reliable good quality devices are much in demand and will continue to keep increasing. I would like to speak on the guidance As a result of the industry dynamics that I spoke in the beginning of this call and the execution momentum we are seeing, the company has strong visibility and growth.
While we had earlier guided for approximately 25% year on year revenue growth, we are revising IT upward to 28 to 30% along with an improvement in profitability of around 150 to 200 basis points compared to the earlier guidance of approximately 75 basis points for the whole year. We remain focused on disciplined execution, prudent decision making and closely monitoring market conditions as evolve. Our objective continues to be building a resilient business that can deliver consistent growth and profitability across cycles. Thank you all very much.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue you may press star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Manish Ostwal from Nirmal Bank Securities Private Limited. Please go ahead.
Manish Ostwal
Yes sir. Thank you for the opportunity and consolation. Of good set of numbers. Very strong set of numbers. So sir, can you tell us the. Total volume growth in the business in nine months versus last year nine Months.
Ajay Kumar Parasmal Pancholi
Yes, sure. So the volume for this quarter was about 186,000 units which was spread across laptops and others in the proportion of 83% and 17%. So to be precise the number was 140,000 laptops and other products being about 45,000 odd. This was for the quarter ended just. Quarter ended December 31st. The same for the nine months is a number of 4,87,500 odd units which is a breakup of about 3,58,000 laptops and others being 129,000 odd. The proportion being about 81% and 19 odd percent. In terms of the same. In terms of revenue share. The same as the breakup is in terms of revenue. So long as it pertains to number of units. The breakup is about 76% and 24% for the quarter ended. And the same being 73% and 27% for the nine month ended period and same period.
operator
Manish, sorry to interrupt but your line wasn’t clear. May I request you to please repeat your question?
Manish Ostwal
I’m thinking.
operator
Sorry sir, you’re breaking up in between. We are not able to hear anything at the moment. Please check the.
Manish Ostwal
Am I audible?
operator
Yes, this is better. Please go ahead.
Manish Ostwal
Am I audible?
operator
Yes, you are audible. Sir, please go ahead.
Ajay Kumar Parasmal Pancholi
Yes.
Manish Ostwal
My question is what is the total Volume growth in nine months? The volume growth.
Ajay Kumar Parasmal Pancholi
Volume growth has increased from 4 lakh 1000 to 4,88,000. In terms of total units in the nine month period.
Manish Ostwal
Okay. Is there any impact of the labor code? Labor code? Because I have seen there’s no provision. So there’s no impact in our business.
Ajay Kumar Parasmal Pancholi
No, there is no impact of labor code in our business.
Manish Ostwal
Is the net debt before December 2025? Sir, that’s it. Too much. Thank you.
Ajay Kumar Parasmal Pancholi
Yeah. The net Debt number for 31st December is about average. The net debt is about 456 odd crores.
Manish Ostwal
Thank you.
operator
Thank you. Our next question is from the line of Pritesh from Lucky Investments. Please go ahead.
Pritesh Chheda
Yeah. Hello, sir. Service rising inventory and memory prices. Now is it a part of your margin or there is scope for further improvement in margin? Then in your opening comments you mentioned that there will be a continuously elevated inventory level. So what should be then the interest cost assumption that one should take while forecasting. Because you initially had a plan of repayment of debt. But I think you have continuously maintained higher inventory. So maybe some thoughts there on the. Interest cost. Should be guided for. And third is the distributor partnership that you’re referring to. My guess is the number one and the number two names we know. So what happens to your revenue or volume growth incrementally based on these partnerships? Do we see acceleration from this 30% top line growth that you have guided for this year or otherwise? You know, these are my three questions.
Sharad Khandelwal
Thank you. Pratish. Your first question was on the margin expansion. As you must have noted that we have revised upward our margin guidance for this year from 75 basis points to 150200 basis points. This is on the back of superior execution, long tail to long tail strategy. Also strategic stock position. That elevated stock position, a higher inventory is the need of the hour because we have to secure supplies in anticipation of demand. Prices are going to rise for, for an extended period of time as we have seen. And there is no clear indication that this situation will abate anytime sooner.
The AI investments are for real and there are long term. Around 7 trillion investments are going in data center and AI infrastructure across the world. We all know that we are using AI in our daily lives and multiple AIs are being used for multiple tasks. While one search engine will give in a similar IP setting, same result. The AI will give different set of queries or in the same setting for different people. So personalized queries, personalized results require a bigger processing, longer processing and this will continue to grow. So that means we will have to keep higher inventory. And this, the, this strategic position of advantage is also going to help us in increasing our margins. Apart from stock positioning, your question was around no.
Pritesh Chheda
So the first question, do you see margins further expanding from this? 11, 11 and a half. I am taking 11 and a half because I think you said 1 and a half crore was extra warranty cost provided in the quarter. My guess is. So I’m just taking eleven and a half as a reference. So do you see a case where these memory prices and you know, whatever price hikes that you are talking about takes up your margin further based on the inventory positioning that you take? So 11 and a half rises further as we move next year. That’s, that’s the assumption we should take.
Sharad Khandelwal
Yeah, we, as a prudence we have given. I would like to mention that we have again given conservative guidance and we’re in the business on the ground, we are on the job and our goal is to increase margins. If your question is around, is there a possibility and we have the environment available for the same. The answer is positive. Yes.
Pritesh Chheda
Okay. So directionally the margins can go further. That’s the conclusion.
Sharad Khandelwal
Okay, yeah, but I would like to be conservative at this point of time.
Pritesh Chheda
Okay, okay. Okay.
Sharad Khandelwal
Yeah. Then on the interest cost side things look good overall.
Pritesh Chheda
Things look good overall. On the interest cost side, do you see reduction or do you see with the growth the debt on your balance sheet continues to stay what it is.
Sharad Khandelwal
The vendor network across the world we are able to secure good quality of material that is required for refurbishment sales. But during the current situation it makes business sense to keep higher inventory which require higher investment. Hence interest cost will be there and likely to be there. But the interest cost will be more than offset by the expanded margins. So we are mindful of that, that around 10, 9, 10% in per annum interest cost, the better marginalization is more than offsetting that interest cost. And you had asked the third question was around the distribution partnerships.
Pritesh Chheda
Distributor partnership and growth. So does it mean that you grow faster than this 30% now because of this distributor partnership?
Sharad Khandelwal
Well, let me tell you this 30% growth is not on the back of the new relationships that we are. We have just announced this will be on top of that.
Pritesh Chheda
Ah, that’s what my question.
Sharad Khandelwal
Which means, which means it can go up further. But as you know us, we always try to give conservative items.
Pritesh Chheda
Correct. Ajay was trying to answer on interest. So absolute interest is what it is when you grow or absolute interest rises from this number.
Ajay Kumar Parasmal Pancholi
Yeah, sure. Hi Pritesh. I’ll address that question in detail. Right. So last year our total interest cost of finance cost was about 38.35 watt crores. In our Q2 guidance quarterly we had indicated a total interest cost saving of about 10 to 12 crores for this year on account of the repayment as the opportunity has unfolded. In Q3 our finance cost is about 9 crores as against what we had estimated it is higher by about 4.4.5 crores in this quarter. How has this played out? This has played out is basically we have had an EBITDA increase of about 22.57 odd crores.
Right. And in the three months, so I’ll rather focus on three months as against the six month period. So as against the four to four and a half years of incremental interest that we have paid, we’ve seen a significant enhancement in our EBITDA contribution. So we should look at it from that perspective from an overall the full year perspective as well. As we mentioned that our inventories and working capital has being elevated on account of the overall opportunity that has been provided by the market. We anticipate that in the current quarter as well interest levels are going to be. Will not there won’t be A reduction. But that having said from where we stand, we anticipate that the full year finance cost will remain more or less same as was in the last financial year.
Pritesh Chheda
But when you grow on this particular. No, my question was when you grow on this base next year and maybe year after, so what happens to your debt and the interest cost?
Ajay Kumar Parasmal Pancholi
So I think it would be important to highlight that. See this, the industry is dynamic. The underground dynamics are quite positive at this point of time. For us. I think we would want to be guarded in terms of how we take this forward, in terms of our inventory levels, in terms of our overall working capital, in terms of how our partnerships have scaled up, what they provide as an opportunity going forward. So we’ll be guided. So the guidance also which Sharadji has given is for the current year, right. We would want to actually come back to the wider audience, including you, at the end of next quarter or at the end of the full year and give you a guidance for the full year as well.
Please bear in mind that the markets have been increasingly dynamic and the opportunity is continuing to unfold and that that is a very live situation. So while Shalaji mentioned the aspect of memory crisis, prices going up by almost 250 to 300 basis 350%. This is actually a week over week. There’s been a transformational change in terms of how memory prices have changed. And the way we would want to guide you on the growth going forward, we would want to restrain ourselves on giving guidance for the next year at this point of time. We would want to address that at the end of next quarter.
We want to see what has happened to the memory prices over the last. We have actually seen what has happened in the last three months. You actually see the results which have turned out to be very positive than what we ourselves have estimated. We would want to actually continue to perform and give you incremental guidance at the end of next quarter and full year.
Pritesh Chheda
Okay, thank you very much and all the best. Thank you very much. Thank you sir.
Ajay Kumar Parasmal Pancholi
Thank you Pratish. Thank you.
operator
Thank you. Ladies and gentlemen, to ask a question you may Press Star and 1. Our next question is from the line of Sunil Jain from Nirmal Bank Securities. Please go ahead.
Sunil Jain
Yeah. Am I audible? Congratulations sir on good set of numbers. Sir. My question is more related to one data question that is how much is your gross debt? And second question relate to more of a memory prices. You had seen lot many years when the memory prices may be going up. You said that this time it is more Sustainable and higher. So any what could be the factor which can influence these memory prices coming. Back to a normal level?
Ajay Kumar Parasmal Pancholi
Sure. Thanks. I’ll address the first part of the question. I’ll request to address the second part of the question. The gross debt is 557 crores and the net debt is the quarter. NET debt is 480, 466 odd cross. That’s the first part of your answer to the first part of your question shall be OT.
Sharad Khandelwal
Yeah, this is a question around memory prices I have seen in the past but they were more event based. Like in 1999 when earthquake happened in Taiwan, the memory prices went up. But when the inflation is stabilized and the production the factories came back to shape the memory prices came back to the normal levels. This time across it is more fundamental. It is driven by heavy AI investments. And that is not a bubble, that is AI we all are using. It is being used across the spectrum. It is being used in organizations and in our day to day lives.
Investments are going continuously there. And we have just spoken about memory. But the processing speed is not just function of memory. It is a function of storage. And also the processors that those are also likely to rise going forward. Secondly, when these prices will stabilize, obviously the enhanced demand will lead to enhanced production capacities. But this do not as you now know don’t happen overnight. We see the memory prices coming back to shape by end of 2027. Yeah, but in this current situation, as we have seen the brand new prices have already gone up by from the 8th of December to 7th of January.
We have done the plotting. The brand new computer prices have gone up by 20 percentage 20% across across the board across the district. This is creating a bigger space for refurbished industry. Now in case of meaningful computer I core 33 sometime will not be available less than 35, 37,000 or 40,000 maybe international market around $375. So anything less than 40,000 or 37,000 will be available in refurbished segment only. And in international, anything less than 375will only come in refurbished. And we want to deliver a product which is like new and with a warranty. So we remain in a very very good space to give our alternative solution to all kinds of customers. And we have seen that we are getting large orders of desktops and laptops from very large institution customers across India and international markets.
Sunil Jain
Yeah, one more question relates to us experiencing very good growth at current point of time and maybe continuing in the coming period. But how about the capacity to meet this demand? What Are all your plan, you had. Not mentioned anything in your opening remark. About the capacity expansion.
Sharad Khandelwal
No, we have sufficient capacity. We made public announcements sometime back. We have taken more space in India and UAE everywhere and we are continuing to hire skilled mansight, skilled people and we are working in advance for our the goal, the business goals that we have. So capacity expansion is happening. We have now around eight facilities in the UAE from three what we had earlier. And we have now taken one bigger facility adjacent to our existing facility in Mumbai, in Navi Mumbai. And we are increasing our space in the US market as well.
Ajay Kumar Parasmal Pancholi
And I’ve already highlighted, Ajay, I’ve already highlighted the aspect around the manpower growth and the build out which was about 1194 at the beginning of the year which has gone to about 1900 all and a substantial part of this is in terms of engineers which essentially leads to the operating performance being the capacity being put in place for the growth that we have already achieved as well as the future growth that we envisage.
Sunil Jain
Great sir, thank you very much.
operator
Thank you. Our next question comes from the line of Atul Mehra from Motilal Oswal Asset Management. Please go ahead.
Atul Mehra
Good evening and congratulations on the result. Sir, my question is on working capital. Can you confirm the number of days of working capital that we have as of the quarter end and how does it compare versus the same time last year and the previous quarter?
Ajay Kumar Parasmal Pancholi
Sure. So hi Atul, thanks for your question. So the working capitals has been in line with. Sorry, there’s a lot of background noise. Yeah, thank you. So Atul, to your question on working capital days, the working capital days are in the 120 to 130 day odd range on an overall basis. This is there’s actually been sequential quarter wise. There’s actually been an improvement of a couple of days in the working capital cycle and in terms of comparable quarter it’s been identical. Right. So there’s no, no out of whack this in terms of the number of days in terms of working capital on an overall basis, whether it be inventory or the overall working capital, it’s in the 120 to 130 day odd range.
Atul Mehra
That’s helpful. Secondly, in terms of given the potential. And obviously we are tapping global markets. So in terms of like given the new distribution tie ups etc that we have done, what is the, what is the potential to grow business in the. Next 12 to 24 months time from. The perspective of the balance sheet and also if you can talk about any initiatives we are taking to reduce the working capital because as the proportion of. Global business grows maybe there is an. Opportunity to reduce working capital days. So maybe if you can talk about both these elements. Thank you.
Sharad Khandelwal
Structurally, in terms of growth, meaning that remains robust, our goals are very robust and proposition and product and warranty has become even more relevant than it was six months ago. And in good from our execution standpoint we have seen that even in the car market, the refurbished used car segment has grown significantly during this period and continues to grow. So our goal will be to continue to grow at similar or higher levels in coming years, coming quarters and coming years. With respect to our working capital question in international India market, the intensity of working capital is high at this point of time because of the situation and it is.
It makes a lot of business sense to keep higher elevated levels of inventory for our margin expansion and servicing our customers. Another point to note is that we are converting people who are here to for selling new computers and there’s a large amount of credit that is available in that that segment. The people who provide the solution providers, value added resellers, system integrators and corporate incentives enjoy large credits on the brand new segment. Now when we have to sell refurbished devices and they have to give it to further their corporates in India and international markets, obviously we cannot be less competitive because we are pushing and this will have long term advantages. It has to be seen more in terms of roe and roce that will remain strong. Working capital intensity is very high in this business because there is no fixed capital or capital expenditure that working capital or stock and AR is the main growth driver and business driver.
Atul Mehra
Absolutely. Thank you sir. And then one final question is as. We approach Q4 in terms of dividend and capital returns, is there any thought. Process or dividend policy that we have. Framed so far or any thinking towards that?
Sharad Khandelwal
We’ll come back to you on this atal and dividend policy and something at this point of time business requires fuel. We remain fluid in this and we will keep sharing our thoughts on this.
Atul Mehra
Thank you very much and we should do very best. Thank you.
Sharad Khandelwal
Thank you very much.
operator
Thank you ladies and gentlemen. In order that the management is able to address questions from all participants in the queue, you are requested to please limit yourself to two questions only. You may rejoin the queue for follow up questions. Our next question comes from the line of Nikhil Purohit from Fident Asset Management company. Please go ahead.
Nikhil Purohit
Hi sir. Am I audible?
Ajay Kumar Parasmal Pancholi
Yes, you are.
Nikhil Purohit
Yes. Thanks for the opportunity and congrats on a great great set of numbers. So firstly thanks so Our average prices in laptops were around 26, 27,000 and non laptops were ranging from 18 to 22,000 based on the volumes and sales breakup of the past three quarters. So considering the steep price that has happened in SSDs and RAMs, could you tell us any revised average prices for the two segments?
Ajay Kumar Parasmal Pancholi
Yeah, sure. So for this quarter our average selling price for ASP for laptops is almost 28,800 odd rupees. Now the same in the previous quarter was about a thousand rupees lower. So there’s been an enhancement of almost a thousand odd rupees. The same thing. If you look at others other than laptops, that enhancement has moved from about 17,900 to about 18,200. The same number if you were to compare on a nine month basis also there’s been almost a thousand odd rupee jump. In terms of the realization it’s important to look at, I would want to highlight that this number should be looked at in terms of what’s the underlying configuration.
Right. But I’m giving a sense on an overall basis. So the on an or an overall basis including laptops and other average realizations, about 26,200 for the quarter which was about 25,200 in the corresponding quarter. So we have, we have actually seen the richness of goodness realized as well. I think that’s. That may be worth highlighting.
Nikhil Purohit
Got it. But Ajay, what I’m trying to understand is if our prices ramp, they’re up. I’m not about the number but are. We completely passing on the prices to the mass or how is it working? What I. I realized. I think Sharaji mentioned that by FY27 end we are expecting the prices to like the. The increase in cost to sustain. So how are we going to pass on these prices to the customers and how will. How do you see volume getting impacted because of this these elevated prices?
Sharad Khandelwal
In terms of pricing being passed on to the customer, Obviously our pricing is on the old prices and we are getting advantage of the climate where the prices have gone up in case of brand new and the current used inventory is coming at a higher prices. So our margin has increased. That’s number one. Second, your question was around how do we see the growth coming in due to the elevated prices? If I understood correctly, I think it’s a very positive development for us because the brand new computer prices have increased. Also I mentioned before that around 25% market. 2025% is unorganized market not covered by top five brands. We have even availability. Not only the price, even availability of memory is an issue. So overall supply is going down and the prices are going up. That creates a huge scope and space for us to sell the product.
So people will be buying more refurbished devices. Anything less than 370 or 400 will not be available in brand new segment in India. A meaningful computer will not be available less than 37,40,000 rupees. And we are seeing that happening playing out in last 45 days. We are keeping a very close track on these brand new prices. This is giving us much bigger space. Even the institutions in India and across India have started buying refurbished devices which they were not buying it earlier. So it’s a net, net very, very positive development for us.
Sharad Khandelwal
Understood? Understood, sir. Thanks.
operator
And so sorry to interrupt. Nikhil, we request you to please rejoin the queue if you have any further questions. Thank you. Our next question comes from the line of Nitin Shah, an individual investor. Please go ahead.
Nitin Shah
Yeah, thank you. Am I audible?
operator
You are audible. So you may proceed.
Nitin Shah
Yeah, so thank you for giving opportunity. So I would like to know like percentage wise, you know, what will be the volumes geography wise. Like we have, we have facility in India, we have three facilities in Sharjah. And so what would the percentage of products from each of this geography? From international market. Our major markets are from our UA. Major markets are US and Europe. They totally contribute around 40% US, 40% Europe and 20% is Middle East. The primary product segments are obviously laptops and desktops. And who would be highlight.
Ajay Kumar Parasmal Pancholi
Yeah, sorry, just to highlight, just to highlight the proportion that Shiraji mentioned is of our international business. And to your subsequent question, which I believe was in terms of. Sorry, I don’t want to get that.
Nitin Shah
Yeah, yeah. Overall product wise, I mean from when does it contribute but which territory? I mean India, US or UAE?
Ajay Kumar Parasmal Pancholi
As Shatterji mentioned, 40% of our sales of international sales is in the US 40% in the European region and 20% in the Middle Eastern region.
Nitin Shah
Which facility caters? I mean which is the largest facility?
Ajay Kumar Parasmal Pancholi
Okay, so. Okay, okay, so the largest facility. The largest facility, as Sharadji mentioned, we have enhanced our facilities is the uae. Everything that happens internationally gets processed in the uae. Right. So all the international operations, you should look at it, that’s almost a substantial part of it is in the UAE followed by India.
Nitin Shah
How much would that contribute in terms of percentage?
Ajay Kumar Parasmal Pancholi
So if you look at our international proportion is about almost 60% of our total revenues. So broadly, that should give you guidance.
Nitin Shah
Okay, UAE would contribute 60% of the total sales is it?
Ajay Kumar Parasmal Pancholi
International would contribute 60%. Okay. India is about 48%. India is about 41%.
Nitin Shah
I understood. In terms of sales and I’m talking in terms of geography wise, which is contributing the most? Is it this UE facility? Is it the U. S facility?
Ajay Kumar Parasmal Pancholi
Yes, yes, yes. Yes, you are right. Yes, it is English.
Nitin Shah
Yeah.
Nitin Shah
And who would be a comparable.
operator
Sorry to interrupt. We request you to please rejoin the queue if you have further questions.
Nitin Shah
Sure. It was the first question itself only which was repeated. Fine. Not an issue.
operator
All right, thank you sir. Our next question comes from the line of Ajay Nandalwal, an individual investor. Please go ahead.
Ajay Nandalwal
Thank you for the opportunity and congress on a great. I have a couple of questions. You know, in this environment with higher memory prices and higher new laptop prices, how is the availability and cost of what we procure? How is that changing.
Sharad Khandelwal
The availability? Because of our relationships, we are able to procure material because we buy from plethora of customers which are like leasing companies, corporates, IT, asset disposition partners, recyclers. So we continue to get good supplies and we are taking steps proactively to secure large supplies and that is leading to elevated stock positions. At this point of time we are still enjoying pricing advantages but the broad trend is on the rising side. But we are step ahead of the same. So we are buying stock ahead of price increases at every level.
Ajay Nandalwal
Understood. So second question on the realizations. Right. So you said the end market laptop price increase are higher by around 20%. How does that translate into like what’s the sensitivity of, you know, new laptop prices versus your ability to price? And how do you think of the trade off between a price versus volume?
Sharad Khandelwal
No, good question. See, because IDC has also estimated if the prices increase on the brand new side, there is an expectation that companies and people will defer their purchases. That will lead to the demand shift coming in favor of refurbished devices. So for our case, we remain even more competitive when compared to brand new computers. And since we are an organized player, we give an experience which is like equal to new and with warranty, reliable warranty. And that is why large distributors in India, internationally have joined with us is because on the back of credibility, they will not join with anybody else because they also have their reputation to protect. So it’s a very, very good upside, good tailwinds available for us. The refurbishment segment per se will grow and we intend to grow faster than the refer b segment growth.
Ajay Nandalwal
Understood. So sir, am I correct if I hear you right, are you saying that you want to drive Higher volumes and not necessarily use the opportunity to get higher margins. Like you’re much more driven by volumes or margins.
Sharad Khandelwal
No, no, no, I am. We are saying we are going to try both higher volumes and higher margins. We are not used to controlling margin. We are not going to encounter a situation where we have to compress our margin to deliver numbers.
Ajay Nandalwal
See you not have a compressive margin but right now you’re making like 5,400 rupees per device.
Sharad Khandelwal
I can hear you sir.
Ajay Nandalwal
Right now your gross margins, Right now your gross margins are on 5,400 rupees per device. Coming up. Obviously the end laptop prices are new laptop increasing by probably ten thousand rupees, a hundred dollars or more. So how is, you know, so that opens up more. Is the market competitive? Are there like competitive pricing where there’s pricing limit or. I’m trying to understand that part. You know, like there is clearly a demand pull because of what’s happening. Does that give you slightly higher pricing power or your shoestring exercises just you know, give some color on that.
Sharad Khandelwal
So we will have to choose the right mix between growth and margin both and we intend to drive both volume and margin growth.
Ajay Nandalwal
Understood. So just one last question. ITAD, any updates on the ITAD’s business?
Sharad Khandelwal
See, we are mostly in the repurposition segment where we procure and give product. Well, it’s just not a product. It’s a warranty and a service and a commitment that the product is reliable and works for good. Three years. So that’s a promise that we gave it. ID is just one portion of recycling business, refurbishment business. But we want to remain on the refurbishment piece where we think we have a very clear advantage and distinct positioning.
operator
Thank you. Participants are requested to please limit yourselves to one question only. Our next question is from the line of Pratik Chowdhury from Samarathia Capital. Please go ahead.
Prateek Chaudhary
Sir. In this scenario where. No. Sales for new laptops will, you know, some of the customers will defer in terms of us having, I mean do we see. A scenario where we would see something. Similar playing out in our suppliers and. Our sourcing as well where you know. There may be a situation that reduced supply is available to us in terms of procurement.
Sharad Khandelwal
See, we buy from very large range of suppliers and across the world. So we are hedging ourselves against a situation where the deferment of new computer sales can lead to lower disposition. But we are protecting us from buying more and from long list of suppliers. That’s number one and that is why we are keeping Elevated stock.
Prateek Chaudhary
Okay, so last, what was your. You said one in Q3FY26 your volume was 1-86,000. What was the same number in Q3FY25.
Ajay Kumar Parasmal Pancholi
Sorry in Q3FY25 it was 1 lakh 43 thousand.
Prateek Chaudhary
Okay. And why were over your margins so low in Q4FY25? Almost 6.8%. Was there any one off in that?
Ajay Kumar Parasmal Pancholi
The last quarter is always. There’s always a trade off between revenue, sorry margin and volume. Right. So it’s a function. So we need to. A lot of purchases happen in the last quarter. There are pricing dynamics etc that play. So we also are in the growth business. Right. So we at times want to. There’s always a compromise between volume and growth. Right. So we take a call on that basis. But that having said I think this time I would just want to limit myself to say that hopefully this time we should have a better proposition given the specific backdrop which we’ve discussed at length especially.
Prateek Chaudhary
Okay, thanks a lot sir. Thank you.
operator
Thank you ladies and gentlemen. We will take that as a last question for today. I would now like to hand the conference over to Mr. Sharad Khandelwal for closing comments. Over to you sir.
Sharad Khandelwal
So thank you all very much for joining this call. This has been very exciting time. After our IPO and the situation we have had good execution across the world. We have enhanced our team, we have enhanced our customers and as you can see for yourself the large distributors are joining hands with us and we are honored by that. The situation is very, very positive for us. This is a good tailwind that is available with us and we are on our toes and want to take full advantage of the same. We do not see any compression of margin like last year in the Q4 this year because of better execution and better environment.
And this business is very exciting business going to grow. It has a both product element as well as service element and long very strong credibility. So that presents a very high barriers of entry. We are not channel dependent, we are not country or geography dependent and our company, we are quite humbled by the fact that we started in India and we thought this proposition is valid across the world and we had the audacity to go to the US and European market which not many people did and we are thankful to God that it has got good validation and we continue to build more upon the same.
Thank you all very much. Thank you for joining this call. Really appreciate it.
operator
Thank you on behalf of GNG Electronics limited that concludes this conference. Thank you all for joining us. You may now disconnect your lines.