Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
GNG Electronics Ltd (NSE: EBGNG) Q4 2026 Earnings Call dated May. 05, 2026
Corporate Participants:
Sharad Khandelwal — Founder and Managing Director
Raakesh Jhunjhunwala — Group CFO
Analysts:
Avinash Karumanchi — Analyst
Chandresh Malpani — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to the GNG Electronics Limited Q4 and 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Avinash Karumanshi from Motilal Oswal. Thank you. And over to you.
Avinash Karumanchi — Analyst
Thank you team. Good evening everyone. On behalf of Motilal Oswal Financial Services I welcome you to 4th quarter FY26 earnings call of GNG Electronics Limited. Joining us on the call today are Mr. Savath Khandelwal, Founder and Managing Director, Mr. Ajay Pancholi, Director Mr. Rakesh Jinwala, CFO and Mr. Rohit Agarwal MD’s office. Now I hand out the call to Saraji for his opening remarks.
Chandresh Malpani — Analyst
Over
Avinash Karumanchi — Analyst
To you sir.
Sharad Khandelwal — Founder and Managing Director
Good evening
Chandresh Malpani — Analyst
And thank you everyone. I welcome you to the Q4 and FY26 earnings call of GNG electronics. This has been a remarkable year for our company. One in which we have delivered our best ever annual performance, expanded our footprint, deepened our customer relationships and substantially over delivered on the guidance we set out at the beginning of the year. I would like to begin by thanking our shareholders, customers, channel partners, suppliers and Most importantly our 2148 colleagues across geographies for their commitment and execution that made this performance possible.
Q4FY26 has been a milestone quarter for us. Consolidated revenue grew 43% year on year to 651 crores and profit after tax nearly tripled to 42.1 crores. EBITDA margin for the quarter expanded to 9.8% and improvement of nearly 307 basis points over Q4FY25 while PAT margin expanded to 6.5% which is an improvement of over 323 basis points year on year. For the full year FY26 consolidated revenue stood at 1891 crores representing a year on year growth of 34%. EBITDA margin during the same period improved to 10.6%.
An expansion of 166 basis points over financial year 25 and profit after tax grew to 91%, grew by 91% to 132 crores which transfers to PET margin expansion by 209 basis points with a 43% increase from 4.9% to 7%. We have by far exceeded both the original guidance we shared at the start of the year as well as the revised guidance we had communicated in our Q3 earnings call both on revenue growth and on profitability. Our CFO Racking will walk you through the detailed numbers shortly, but one thing is very clear.
For the full year we have delivered healthy growth supported by a strong demand across both domestic and international markets. Our revenue growth trajectory has remained strong and more importantly, profitability has scaled faster than revenue with improved realizations and stronger margins. As we had indicated in our previous earning calls, we continue to see margin expansion driven by better procurement, tighter execution and strategic inventory positioning which has allowed us to benefit from the prevailing industry dynamics.
What is particularly encouraging is not just the growth we are delivering, but the quality of that growth. Our business continues to remain asset light but working capital driven allowing us to scale efficiently without large success investments while maintaining flexibility in a dynamic environment. Our margin expansion is also driven by greater distribution reach we have built across geographies, that is Across India and in international markets as we move closer to the user and as our products continue to gain greater acceptance.
Supported by devices that are at par with new in terms of both performance and aesthetics, backed by reliable and proven warranty resulting in combined strength of our product and service offering, making our product and value proposition even more compelling. This in turn allows us to price our products better which directly translates into a stronger margin profile. We continue to expand our global footprint as of the end of financial year 26 we now supply to 46 countries, up from 38 countries at the start of the year.
Our customer facing reach has grown to 4800, 895 touch points across enterprises, institutions, distributors and channel partners compared with 4,154 at the beginning of the year. Our supplier base has expanded meaningfully as well, providing us with deeper, more diversified sourcing across geographies. To support this growth, we have continued to strengthen our team. Total employee strength has now crossed 2100 with substantial addition to our engineering, sales and procurement functions through the year.
This investment in talent is what has enabled us to scale our refurbishment capacity, deepen customer engagement and expand our distribution reach without compromise on quality. We have also strengthened our marketing team which is now actively driving multiple campaigns and programs aimed at expanding and amplifying the electronics bazaar proposition to a wider global audience. Let me share a few specific initiatives. First, on the consumer facing financing front, we are launching a flagship affordability program making a premium refurbished laptop available to end customers through our dealers at as low as 1,000 per month through structured EMI partnerships with leading consumer finance players in India and similar tires being explored in our international markets.
This program we believe will meaningfully expand the universe of customers we can reach, particularly first time computer buyers, students and small businesses. Second, we have continued to invest in deepening our channel engagement through regular on ground channel partner meets across major cities including recent meets in Thane and Ahmedabad which we will continue to scale through financial year 27 to strengthen our distributor and ecosystem. And third, we have rolled out targeted performance, digital marketing and influencer led campaigns partnering with renowned tech influencers such as Rajiv Makini to build category awareness and elevate the electronics radar ban among consumers and enterprise decision makers.
Together these initiatives are translating into greater customer reach, stronger brand recognition and ultimately healthier sales and margins. Also, our team continue to participate in international trade shows across US and Europe throughout the year to nurture and enhance our business partnerships. On the distribution side, as covered in our recent press release, we have formalized strategic partnerships with India’s leading technology distributors. While the full impact of these partnerships is yet to be seen, the early signs are encouraging and we look forward to scaling these relationships meaningfully over the coming years.
Let me now turn to the broader industry because the developments over the last six months have been fully defining for our segment. As I have been Highlighting since our Q2 call, the Global PC industry is undergoing a structural shift driven by AI led memory diversion. Since then the situation has only intensified and importantly, it is no longer a memory only story. Storage, processors and other key components are now seeing comparable price escalations. More importantly, there is supply constraint of brand new computers on account of shortage of critical components.
Let me share some specific data points to illustrate the magnitude of this shift. As I had referenced in our Q3 earnings call, an 8GB DDR5 memory module was priced at $23.35 on October 1, 2025, rising sharply to $86.61 by January 1, 2026. As of April 1, 2026, the same model is priced at approximately $120 more than five times its level just six months ago. The 16GB DDR5 model has followed a similar trajectory from $54.85 on October 1 to $189.99 on January 1 and approximately $210 as of April 1 close to four times in six months.
More importantly, again, as I had Also mentioned in Q3, this is no longer just a memory phenomena. The same pattern is now clearly visible across other key components. 1 TB SSD which was priced at around $70 on October 1, 2025, rose to $180 by January 1, 2026 and is now approximately $249 as of April 1, a 3.5 client increase in six months. A typical high end processor has risen from $165 on October 1 to approximately $240 as of April 1, up roughly 45%. With CPU lead times now stretching in many cases to as much as six months.
The impact of these component price escalations is now flowing directly into price of new laptops. To give you a sense of the magnitude, a typical entry level laptop with 8GB RAM and 512GB SSD which was selling in China in India for around 25,500 as on 1st December 2025 rose to approximately 32,500 by January 1st and is selling today at close to 40,000, an increase which is an increase of nearly 57% in just 6 months. The story is similar in international market. A comparable laptop which was priced at around $315 on October 1st rose to $375 by January and selling today at approximately $440.
This is an increase of around 40% in six months. This is the new reality of the new this of the new PC market and it makes the value proposition of Credible branded refurbished PCs supplied by electronic Bazaar stronger than ever before. Let me mention in good measure that illustrations that have been given are of entry level brand new computers. While we deal in high end refurbished computers and end user can now buy a premium high end refurbished computer by us at a better value than an entry level brand new computers.
The March 2026 IDC update conveys this opportunity more clearly. According to IDC, global new PC shipments stood at approximately 285 million units in 2025. IDC has further cut its 2026 PC shipment forecast to a decline of around 11%, a further decline from 8.9% that was projected earlier, an absolute number. This implies a reduction of roughly 32 million units in 2026 alone. But the real picture is even more starting under normal circumstances, 2026 was expected to be a growth year for PCs because of the area PCs adoption weight.
So when you compare the 11% expected fall again, the roughly 10% growth that the market would otherwise have delivered. You are looking at a cumulative gap of approximately 55 to 60 million units of computing demand that the new PC market simply will not be able to serve in 2026. I repeat, this is a gap of 55 to 60 million units of computing demand that brand new computers will not be able to fulfill. The unmet demand is logically finding its way to the refurbished segment and we continue to fully harness this opportunity.
The end demand of computing for computing isn’t disappearing. As I said in our Q2 earnings call, by the end of the year AI would change the landscape of how we do things and that is exactly what we are seeing playing out today and we are just scratching the surface of what AI is capable of. AI is making computing more, not less, central to how enterprises, governments, students and consumers operate. What is changing is where that computing demand is being met. And in this shape, refurbished pieces, particularly those backed by light new quality and extra credible warranty, represent the most viable and economical alternative.
Thank you. I would now like to hand over to our CFO Rakeshi.
Sharad Khandelwal — Founder and Managing Director
Thank you Shoji and good evening everyone. I am happy to share that we have closed FY26 with the strongest ever quarterly and annual performance capping a year of consistent execution, disciplined growth and a meaningful expansion across the board. Let me first walk you through the Q4 numbers. During the quarter, consolidated revenue grew from 43% year on year to rupees 651.7 crore driven by sustained demand momentum across both our domestic and international markets, particularly the Middle east, the United States and Europe.
Gross profit for the quarter stood at rupees 125.3 crore with gross margin expanding to 19.2% from 15.1% in Q4FY25 sharp improvement of 414 basis points reflecting better procurement, sharper inventory positioning and improved realizations. EBITDA for Q4 stood at rupees 64 crore with EBITDA margin at 9.8% versus 6.75% in Q4FY25 an improvement of 3 and 7 basis points year on year. Profit after tax for the quarter nearly tripled year on year to rupees 42.1 crore with PET margin expanding to 6.5% compared to 3.2% in FY25, an improvement of 332 basis points.
Coming to the full year FY26 consulted Revenue grew 34% year on year to rupees 1891.1 crore. Gross profit grew to rupees 380.9 crore with gross margin expanding by 225 basis points to 20.1%. EBITDA grew to rupees 200.5 crore with EBITDA margin improving by 166 basis points to 10.6% versus 8.9% in FY25. Profit after tax nearly doubled to rupees 132 crore. A growth of 91% year on year. With that margin expanding to 200 and 9 basis points to 7% from up from 4.9%. FY25 we have delivered massive revenue growth in India with consumption revenue going up from 345 crore to 622 crore in FY26 increasing by 80% overall.
FY26 has been a year of strong all round performance with significant revenue growth, meaningful margin expansion, robust capital efficiency and a strong balance sheet. We enter FY27 with healthy momentum, strengthened team, expanded distribution and structural industry tailwind that SAVAJ has spoken about. Thank you.
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 touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take a first question from the line of Chandrash Malpani from Nivishai. Please go ahead.
Avinash Karumanchi
Hello? Am I audible?
Operator
Yes, go ahead. Yes.
Avinash Karumanchi
Yeah. Thank you so much sir for the opportunity and congratulations on this great set of numbers. My first question is basically on the, you know, volume numbers for this quarter and, and the average selling price.
Chandresh Malpani
Yeah, sure. Thanks Andres. So let me give you first the volume number for the full year. The volume number for the full year is about 7,27,000 odd in comparison to 5,90,000 odd. Okay. And broadly this is again the breakup of. This is almost 81 in laptops and 19% in other than laptops. Furthermore, to your question, in terms of the last quarter, the breakup of laptops is about take UP is about 175,000, 676,000
Avinash Karumanchi
Laptops and 65,000 others. So that basically brings the quarterly number to about 2,41,000 coming to the ASPs for the quarter just ended. For laptops the AS fees is about 30,000 odd rupees and for others it is about 19,000 odd rupees. On a blended basis this number translates to 27,000. If I were to compare this on A full year basis, my ASP on a blended basis the ASP is about 26,000 rupees. And furthermore for laptops it is about 28,800 and other it is about $18,300.
Chandresh Malpani
Okay,
Avinash Karumanchi
Got it sir. And basically if I, if I Compare with the Q3 numbers wherever, you know, where we are also keeping elevated inventory levels because of, you know, the reasons that you mentioned in your opening remarks. So why, I mean the ASP on a branded basis have gone up by thousand rupees, but you know, the gross margins have not, you know, directionally followed that. So what could that, what could be the possible reasons
Chandresh Malpani
Here?
Avinash Karumanchi
So if you look at, see basically what happens is Q4 at times we also, and we, we’ve had this earlier as well, there’s always a push of volume over margins. So at many times we need to push that element as well. That having said, if you look at our quarterly Q3 vis a week, Q4, the ASPs have increased by almost from 29,000 for laptop to 30,000 rupees and on a blended basis from 26,200 to the real life. But also be mindful of the fact that this quarter, as mentioned in his opening remarks, has been really transformational as we are building capacities, building getting ourselves prepared for the
Chandresh Malpani
Future as we roll out to the next year. So there are certain investments that, whether it’s in terms of people or processes etc. That have, that get reflected in the numbers as well. So you should not necessarily. Also more importantly, if you look at the corresponding quarter.
Avinash Karumanchi
Right.
Chandresh Malpani
The delta is significant
Avinash Karumanchi
In terms of margins as well. Yeah. But you, you’ll have to weigh in the overall dynamics on the final outcome. Okay. No, sir, the know what, what I want to bring out is here because we are, you know, again back to our debt levels of pre IPO. I mean 400 odd crores of, you know, borrowings is again at this March balance sheet. So again our strategy of keeping the higher inventory because as at this year end we are about 700 odd crores of inventory. So we are, you know, confident of that strategy, right?
Chandresh Malpani
Yes, we are confident of the strategies. And just for the benefit of the wider benefit of people on the call, I’ll just address the debt position levels as well relative to what guidance we had given at the end of the last quarter. And I’ll also share this. In comparison to the March 25th numbers, so in terms of March 25th, the net debt was about 383 odd crores. This included a shareholder loan of about 60 odd crores. Okay. If you look at the same number at the end of March 26, this number is the net debt is about 300 odd crores and this does not include any shareholder loan has also been paid off.
Now it will be pertinent to note that the same position as of 31st December the net debt number was 466 crores. That has gone down to 300 odd crores. Right. So as against. So as
Avinash Karumanchi
Relative to last year which was 383 crores, it is now 300 odd crores. But yes, you are right. We continue to maintain strategic positions on our equity. And yes, the participation of our shareholders in terms of the IPO as well as the profitability has given us that additional leverage to take that strategic position in terms of how we see the opportunity and how we can use up the opportunity in terms
Chandresh Malpani
Of our inventory levels. And the tailwinds actually are helping us to take that strategic position.
Avinash Karumanchi
Okay, thank you so much for this. This was helpful.
Operator
Thank you. Thank
Chandresh Malpani
You.
Operator
Next question.
Chandresh Malpani
Due to the price increases as I mentioned in processors and now in SSD and memories earlier in memory, now processors and ssd, the price of brand new computers are increasing like anything. We are in a situation where the prices will keep on increasing through 27 and there will be a. We can call it a stable price increase and it makes it imperative for us to keep elevated levels of inventory for us to be selling them at a better price and maintaining our margins, even increasing the margins. So we have to buy ahead of the pricing case curves and the need of the hour is to keep high levels of inventory.
It makes all the more commercial sense for us.
Operator
Thank you. Next question is from the line of Sunil Jain from Nirmal Bank Securities. Please go ahead.
Avinash Karumanchi
Yeah, thank you very much for the opportunity and and congratulation on good number. Sir. My question again relate to inventory which you are maintaining high even after having a peak quarter of sales of almost around 600 crore plus, 650 crore plus you still have inventory, very high inventory of over 700 crores. So is this likely to continue as you said to the end and you will keep on keeping the inventory of almost around four and a half five month.
Chandresh Malpani
So I would. Thanks. Thanks for your question. Let me address this in a couple of ways. If you look at our inventory levels at the end of last year that number was about 490 occurs. If you look at the same number at the end of the 31st of December which is the end of Q3, that number of 683 odd cross and the same number is 743 crores. Now. Right now as I think it’s very important for you to relay upon the market dynamics as to how we
Avinash Karumanchi
Are seeing the market dynamics playing out which is in terms of component prices, memory prices and so on and so forth. So that helps strategically this inventory level strategy helps in the overall strategy going forward. Because the way we see this is this actually adds substantially to our capability to add on to profitability. So inventory levels at about 740 odd crores as of March end. While you may say that is this number is almost three, four months
Chandresh Malpani
Of quantum. But we
Avinash Karumanchi
See this as the real opportunity and we see this to
Chandresh Malpani
Really add on to our profitability going forward. So this is a strategic thought. I think we’ve. You’ve seen the enhancement in inventory levels at the end of last quarter and this quarter as well. And we’ve given the rational even then as to why we have strategically brought up this position and all the data points mentioned by Shirji earlier in terms of how entry level machines have moved in terms of pricing, how the component pricing has moved. And that really gives us the confidence that these inventory levels will be fruitful from an overall perspective for our business.
Avinash Karumanchi
Apart from this, even the debtors level which was at around 0.6 in last year has moved up to over one month, means 1.3 per month. So what is the reason?
Chandresh Malpani
So at the end of December the data were at average receivables were about 285 crores. That’s gone down to 406 crores at the end of March. Okay. And this is again as we’ve emphasized, this is this business. If you understand the key mode of this business or the key dynamics of this business, this will be asset light but working capital consuming. And furthermore to say as we have added more partners in our distribution strategy, we will need to support our partner even for new machines. When the partner sells new machines they are given credit by the OEMs and that credit is ranging from about 30 to 45 days.
And our level of credit is no different than this. So we have to be competitive and place the proposition such that the distribution channel also equally
Avinash Karumanchi
Does not see this as a different mechanism and they promote our product also with the same rigor. Yeah. So the one,
Chandresh Malpani
If I may add that we have gained a level of institutional trust and now there is a successful validation from global distributors who previously handled only new equipments. So in this segment the credit will be very, very Important for us to be able to push an entire distribution channel for refurbished products to be sold in the segment where heretofore new computers were being sold. As refurbished computers are becoming now a real alternative, they service by us with 1 year, 2, 3 year warranty, equal to new features and equal to new feature with credible warranties became an alternative.
So we have to funnel this channel for us to reach the end customer and credit is paramount for that to happen.
Avinash Karumanchi
So the conclusion is that the working capital cycle which is elevated in the current year will continue to remain elevated for at least near term.
Chandresh Malpani
Yes, that’s correct. With the reason being that we are in a situation of extreme shortages because of hyperscalers and shortage of ssd, RAM and processors. Even the. I may add, the brand new computer shipments are reducing because of supply crunch. So mixed modes and the prices are increasing. So we have to take strategic stock positioning also to sell the material to the global tech distributors for us to reach the right customer. Right business customer.
Avinash Karumanchi
Sir, if you can share guidance for next year, if possible,
Chandresh Malpani
Next year guidance we can give at around 25% revenue growth and on pack level growth around 0.5%.
Avinash Karumanchi
And you should look at this on the. Sorry, the pack level growth, an increment of at least 50 basis
Chandresh Malpani
Points from the current level. So this is on the back of almost 200 basis points. Yes, margin expansion about at least 50 basis points on the back of the substantial growth that we have delivered this year.
Avinash Karumanchi
Okay, great. Thank you very much. We’ll come back in a time.
Operator
Thank you. Next question is from the line of Nishant Sharma from Nuama Wealth BCG Research. Please go ahead.
Avinash Karumanchi
Thank you for the opportunity and congratulations for great set of numbers. My first question is around on the margin side, we have seen a sequential decline on the margin. Partly you alluded that this is because of the investment on capacity builder people and processes. Just wanted to understand what kind of impact could be because of these parameters on the margin on a sequential basis. Hello. Am I audible?
Chandresh Malpani
Yeah. So. Yeah, yeah. So the way we should look at it, as the guidance has given broadly, we are seeing that there will be an improvement. You should look at it from a trajectory perspective. There’ll be an improvement quarter over quarter going forward. Typically you have seen that at least in the last Q4
Avinash Karumanchi
Of this year. Q4 of the previous year and earlier periods as well. We’ve always seen the Q4 margin to be a bit subdued because it runs on the. On the back of substantial volume growth. Right. Because that is the period as we had alluded earlier as well year end period, strategic purchases or large bulk purchases etc. And hence we have to give that push to
Chandresh Malpani
The overall ecosystem. So in terms of quarter over quarter we see you should look at the trend from as how we have grown historically we’ll add up on top of that over quarters.
Avinash Karumanchi
Okay. And just want to understand basically even in previous quarters we have broadly very confident in achieving 25% revenue growth trajectory for next. Am I audible now? Sorry,
Operator
So you’re able to hear him?
Avinash Karumanchi
Yes. Am I audible now?
Operator
Yes, you are.
Avinash Karumanchi
Yeah. So I was highlighting asking that historically or last couple of quarters we have been very confident in achieving 25% kind of a revenue growth going forward for next couple of years given the huge industry tailwind that we are seeing. Apart from that we have also added new distributors in our kitty. So don’t you think that 25% seems to be on a conservative side and given the new distributors coming in, we can easily outpace this number.
Chandresh Malpani
You are right. We like to give conservative estimates.
Avinash Karumanchi
Okay. And a last question on around distributor side when we have added new distributor what kind of Currently they are holding the inventory of refurbished laptop at their distributor distribution kitty or warehouses and vis a vis what is their thought process in terms of taking it as a overall inventory at their levels?
Chandresh Malpani
The students are very very excited on this business. Their team, their channel partners are accepting this proposition in a very very excited way. Right way. And in terms of advantage, what they are keeping is between 30 to 45 days of inventory that they usually keep is very much required for doing the right improvement distribution the right way. And it is in line with the brand new inventories that they usually keep. In fact it may be lower than that.
Avinash Karumanchi
Broadly my question was around in terms of percentage of shares. So suppose they are keeping 100 new laptops to what is the kind of number that they are keeping it for refurbished laptop and going forward?
Chandresh Malpani
That is difficult for me to answer the question. It will be a small percentage but. Right. Definitely we intend to grow with them and our our proportion their overall KT or Pioneer will increase
Avinash Karumanchi
And any new distributor partnership that is in line up.
Chandresh Malpani
Yeah. We are in talks with various distribution partners around the world and as and when the materializes we will give the right press release.
Avinash Karumanchi
Sure, I’ll. Sure. I’ll call back and tell
Chandresh Malpani
You the part. The descriptions are in advanced stages in Europe and the United States.
Avinash Karumanchi
Okay, that’s great sir, that’s great. Once again, many congratulations and it’s all back in queue. Thank you.
Operator
Thank you. Next question is from the line of Asta Jain from PKT Advisors. Please go ahead.
Raakesh Jhunjhunwala
Hello. Thank you for the opportunity. Sir, my question is with respect to other expenses. So for this year it has increased by 40% on yoy basis. So can you tell us that what is the reason for increase in other expenses? Yes,
Operator
Yes,
Chandresh Malpani
Yes, yes. So the other expenses substantially are on account of great marketing and insurance. Right. If you look at when you say that yes, it has increased by almost 40% but 1/3 by 37%. One should also look at this number on the back of the revenue line as well. Is there an increment of about 5, 7 to 10 basis points more than what we had anticipated? Possibly yes. Especially in the last quarter. On account of the increased state rate. On account of the situation that we are all dealing with. But it is pretty much in line.
I don’t think it is out of out of bat at all.
Raakesh Jhunjhunwala
Understood. So my second question is with respect to revenue breakup I wanted to know can you give us revenue breaker by geography?
Chandresh Malpani
Yes. So the revenue take off by one second I’ll just allude to it. So for the full year India revenue is about 50 odd percent. UAE is about 12%, US is 21%. Europe about 20% and the rest of the world is about 14%. So in a sense US and Europe put together at about 41%. India at 33%.
Raakesh Jhunjhunwala
Thank you.
Operator
Thank you. Next question is from the line of Paras Chida from Purple One Vertex Venture llp. Please go ahead.
Avinash Karumanchi
Yeah, thank you sir for this opportunity and congratulations for the wonderful set of results. Just two queries. Iran war. Was there any impact on our operations at sergeant or. Or either sales etc, you know in terms of the supply chain or logistics.
Chandresh Malpani
Yeah, thanks for this question. I was expecting it because I was really
Avinash Karumanchi
Worried about this actually.
Chandresh Malpani
But. No, no but let me assure you that the situation is. It is quite normal. The government of UAE has handled situation pretty well. Very high rate of interceptions. And our facilities have been up and running every. Every single day. Our shipments happen by air so that are also uninterrupted. The blockage that you hear in state of hormones we are not impacted by that. And pretty much the life in UAE is as normal as it could be given the circumstances. It is not ideal. We. We. I am speaking to you from Sharjah as we speak.
So you can imagine situation is pretty normal concern. Our facilities are working and shipments are happening.
Avinash Karumanchi
So basically you know the shipments by air has been normally as it is since the time it has been Operating or was it normal for the containers? Yeah,
Chandresh Malpani
No, no, no. We are making the shipment by air. So that is a part from minor delays of restaurant is okay. And we also. Let’s understand, we keep very good inventory position in Europe and America too.
Avinash Karumanchi
Right? Inventory
Chandresh Malpani
Only in the, in. In Middle East. So what we. We ship to our US office bulk of the inventory. We keep it there and form it is sold to American and European markets also.
Avinash Karumanchi
But, but procuring or supply parts etc was that challenge or that has also been mandatory. I mean you can obviously see that
Chandresh Malpani
We have not shown operation challenges on account of this this far. There is a ceasefire in place for last 30 days. Some minus conditions did happen yesterday. Right. But apart from that situation is pretty normal. No operation challenges to us at all whatsoever.
Avinash Karumanchi
Oh, that’s nice to hear. And secondly that I mean I just heard about this, you know, price rises in the new laptops and the component parts etc, I mean just. I was offended and you know, I may be a little bit underrating this but in terms of margin expansion for ourselves, the benefit out of this huge tailwind, you know, the price rise so far for us has been quite nominal. So is there a scope for a significant margin expansion now for this year or. This is where, you know, things stabilize in terms of margins now.
Chandresh Malpani
No, see we have given you guidance of 0.5% in terms of that expansion. This will be obviously on the back of margin expansion. And we are also making more inroads and trying to establish ourselves as a structural giant in circular economy. And the idea is to gain more acceptance across wider audience of business customers in overall market. But the margin expansion is also part of our strategy will find the right balance and the margin expansion definitely will also be there apart from top line expansion.
Avinash Karumanchi
Right. And so this last bit of. In terms of. I mean inventories have understood to some extent with only one thing, you know, I mean we have strategically positioned high inventory given the situation that is revealing currently. But at at some point of time know. And we’ll also be rising on the debt curve etc and if there is a, you know, cycle disruption, you know, some Blackstone event, is there an inventory sort of risk that we are sitting on or we will be able to manage it?
Chandresh Malpani
No, not quite. Because if we have kept strategic position of inventory, they are bought at comfortable prices, we have not bought them at higher price. Let me show you that and. Right, yeah. So we are in a situation where we have bought inventory at lower prices.
Avinash Karumanchi
Okay, thank you
Chandresh Malpani
So
Avinash Karumanchi
Much.
Operator
Thank you. Next question is from the Line of Hiten Borisha from Sequent Investments. Please go ahead.
Avinash Karumanchi
Yeah, thank you for the opportunity, sir. So my question is again on the margin. So you mentioned our top line will grow at roughly around 25 or more than 25%. So question I want to understand is what kind of EBITDA margin we are looking. Because I, because I think the cost will not move parallel with the top line. Right. Employee cost and other expense will remain low. So are we looking at like 11, 12% EBITDA margin for this year?
Chandresh Malpani
Yes. So if you look at. Yeah, so if you look at last year our EBITDA margin was still below 9% as we speak we have drawn this to about 10.6% for the full year. The guidance that we have given is enhancement of at least 50 basis points at the ACT level. So it would be fair to assume that at the EBITDA level it will be achieved higher. So from 10.6 will it be about 11.5 or thereabouts? In order to achieve the guidance we’ll have to deliver that number. Sorry sir, you mentioned
Avinash Karumanchi
From 10.3, 10.52. You were not audible in between. Sorry,
Chandresh Malpani
11, 10.6 to 11.5.
Avinash Karumanchi
Okay. Or
Chandresh Malpani
Thereabouts in order to, in order to, for us to deliver at least a 50. 50 basis points that expansion.
Avinash Karumanchi
Understood. And so my second question is on the finance cost. It has gone up From I think 9 crores to 14 and a half crores, quarter and quarter, which is largely because of the working capital. But you mentioned the prices of the vans and inventory. It is eventually gradually going to go up in this year also by end of Q4. So are we expecting this rendered 14, 15 crores kind of cost, quarterly run rate to go up or is it going to sustain you?
Chandresh Malpani
It’s likely to sustain. The way we should look at this, it’s likely to sustain. As I guided at the end of last quarter we had indicated a debt position of about 450 orders. It was 466, which was at the end of December. Up to that level we are pretty comfortable that having said as of March end we’ve got that number down to about 300. So it should be in that trajectory is what. Understood, Understood. Okay,
Avinash Karumanchi
Thank you.
Operator
Thank you. We’ll take our next question from the line of Raj Sara from Finvestors. Please go ahead.
Sharad Khandelwal
Yeah, so conversation from the gate to Farmer. So I missed your initial commentary. Sorry for, sorry for that. I just wanted to ask her, like the margin compression is the last quarter and I can see even the previous Year the margin was compressed for Q4. So you mentioned the reason. So can I assume that the margin is going to be slightly above the last the concluded quarter starting from the Q1 only?
Chandresh Malpani
Yes, that’s right.
Sharad Khandelwal
Okay, sir. And sir, what is the count for our companies and reformation capacity and utilization level?
Chandresh Malpani
Sorry, I missed the question. Can you repeat,
Sharad Khandelwal
Sir, imply count as of now or if you can see IT as of 31st March 2026 and the refurbishment capacity and the utilization numbers. Utilization percentage.
Chandresh Malpani
Okay. Yeah, sure. So the way we should look at it from our employee count, our number is about 2148odd percentage, sorry, 2148 of which about 1800 is production technicians. And also we should look at this, that as compared to last year which this number was at about 1200 odd employees, this is going to more 2150. And there’s a significant addition that has happened in the last four to three to four months. So the way we see this is that the productivity will enhance forward going forward in the coming quarters on account of the capacities that we have put in place in terms of the people as well as the infrastructure that is required to have also been enhanced so that we can grow at a much faster place, capacity wise.
It’s not a challenge. We are well guessed.
Sharad Khandelwal
So right now, sir, if you can just give a number on how much units per month we can refurbish.
Chandresh Malpani
So if you look at the number for the full year, we have done about 7 lakh 26,000 nodes. So that will give you a number of about 60,61,000 nodes. Right. And can, can, can. From the capacity standpoint from the people that we have and from the space that we have, we have taken strategic space positions in the, in the UAE as well as in India. In Mumbai we have. We had one facility which we expanded to and in UAE we had earlier three, now we have eight. So from the capacity we are under the employee cost, the productivity is also going to increase.
We should, we have, we can say that we have capacity of doing around 150k units a month.
Sharad Khandelwal
150kms per month. Okay. Yeah. And the effect of the waste ratio which you just concluded, there is no effect as such because we are shipping through air route. So are
Avinash Karumanchi
We 100% the old laptops or all the laptops are, which are we are taking for refurbishment? Are taking from air routes only?
Sharad Khandelwal
No, no. Water routes. Zero percent water route.
Chandresh Malpani
No, no. And outward, both are by air.
Sharad Khandelwal
Okay. And there is a new effect of West Asia just, just right now. We have heard some, some hostility in one last one two days like. So there is no effect on our production sites
Chandresh Malpani
Yesterday? No, no, no, no. Okay, obviously not. I am sitting in the UAE only yesterday there were I think some seven or eight missile strikes and there is a very good interception rate up to the point of 99.5. So they’re intercepting all the incoming missiles and couple of missiles that are coming, they’re falling, falling the sea or on the scale end where if you come, if you see the main road in Dubai road, Dubai Mall, they are all proudly standing tall. There’s no impact, we don’t see any impact of destruction whatsoever on the road, on the surface at all.
But yes, when we read that immediately see a different picture.
Sharad Khandelwal
So why am I
Chandresh Malpani
Operated, sorry, on the back. We have operated at normal, in a very normal manner even in the peak of the situation. Right. So. And we are reasonably certain that if we continue to operate the way we are, we don’t see, we have not seen the impact of the logistics, we’ve not seen the impact of the production facilities, we’ve not seen any impact or on the people availability etc. So I think things should, should be looked at in that context.
Sharad Khandelwal
Why I’m asking this because our, our huge facilities lies in there. So are we planning further to. To augment our facilities out of UAE anywhere for. For taking
Avinash Karumanchi
Future end user?
Chandresh Malpani
See, it’s a very early situation around 2 months 5 days old I believe. It’s my informed belief that situation should get normalized very soon and we don’t see need for moving to any other location or any other place. I think we will remain as, as safe as ever.
Sharad Khandelwal
Thank you very much. Very much sir. And just best of luck for, for next financial year and beyond. Further. Thank you.
Operator
Thank you. We’ll take our next question from the line of Anuj Hariya from Interglope Services. Please go ahead.
Chandresh Malpani
Hi. Thank you for the opportunity. My question was around the average selling price, right? Since you mentioned that there’s been a continuous increase in the price of storage processes and memories quarter on quarter can we see an increase in the average selling price like this quarter the average
Avinash Karumanchi
Selling price per laptops you mentioned was approximately 30,000. So. So let’s say in quarter one of this year and quarter two, can we see an increase in the agit selling price?
Chandresh Malpani
You’ve seen this trajectory over the last three quarters in terms of the betterment of the realization, right? So if you were to ask me that will this trajectory continue, will we hope it will Continue. But we have to be at the same point of time very dynamic in the pricing and strategy so that we continue to deliver the numbers and not necessarily hold on for the margin itself. But we anticipate that with the outlook that is that is there on the key components, the probability of a better realization is reasonably high.
Avinash Karumanchi
Got it. And just a follow up question. So in the current financial year, do we plan on adding any additional manufacturing facilities? And by the end of the year, what is the approximate head count that you see.
Chandresh Malpani
At this point of time? From the point we have taken already sufficient space for our facility so we don’t the need for any further facility at this point of time. In terms of the manpower count at the end of the year, it is not possible for us to predict, to say that at the point of the time. But obviously it will be much more than what we have now. And to supplement that, we continue to add to the marketing team and the marketing force so that we can penetrate further. As we mentioned that we have significantly built up our capacity in terms of people or technicians.
So that will provide the collect to the growth for the immediate year. That having said, we will be very, we’ll be very mindful as to how much we grow depending on the need. And as we said earlier as well we have, whether it’s the operating capacity, the shapes, the people, we have all of that in place significantly for the year. The focus will be significantly on enhanced marketing and the marketing role will be a higher focus then while there’s focus required on every element. But marketing will be on a higher thing.
Avinash Karumanchi
Got it. And just a follow up question. So in the month of February we
Chandresh Malpani
Partnered with Ingram and Supertron. So from February till March and let’s say till April end right now, can you just share the amount of revenues that we
Avinash Karumanchi
Have generated from these two partners?
Chandresh Malpani
We are just scratching the surface with these two partners. The number that we aim to achieve will be much more than what we have done on an average basis. Yes,
Avinash Karumanchi
Okay, okay.
Chandresh Malpani
It’s a very, very small percentage percent. It’s a minuscule percent. I can tell you this. Okay.
Avinash Karumanchi
Okay. So. So we are yet to see the growth from these partnerships, let’s say in the coming years. The current year. Sorry. Yes. Yes, that’s
Chandresh Malpani
Correct.
Avinash Karumanchi
Thank you. That will be also my end.
Operator
Thank you. Next question is from the line of PR Jain from Single Financial. Please go ahead.
Avinash Karumanchi
Hello, good evening. Am I audible?
Operator
Yes, please go ahead.
Avinash Karumanchi
I wanted to ask Director, before this financial year your inventory cost was lower but now your structure which you are procuring now that cost will be higher. So going forward can we assume that margins can decrease? Also there are chances if prices fall.
Chandresh Malpani
No, not quite because we are buying the chances of prices falling are not there because of the component prices increasing. Memory is just not using computer, it is used in evs, it is used in watches, smart watches, smart rings, lot of other places to use SSD shortage is there. So hyperscaler expansion are happening. The hyperscalers are companies like Amazon, Alphabet Meta and the likes who are sitting on huge cash file. So this is not going down and we don’t see any situation and I have a good authority the information, knowledge and market insight.
The prices are not going to go down to 2720 before 20 January. Any in any case it is not coming back to what it used to be. Even if the prices will go down we are seeing a situation price increase. Only thing it might see a correction but that is not happening before 28. But it is not going to come back to what it what it was say in November of 25.
Avinash Karumanchi
Currently prices are almost up for 5 to 6 times. So even if they fall 20 to 30% will there be any contrast, any margin?
Chandresh Malpani
Now that said, you should be mindful that while our realizations are better even if there’s a correction, our ability to the input cost has not risen that significantly. So we have been strategic in terms of adding inventory but our input costs have not increased significantly. To your concern on the risks associated with what are the prices go down, would it be impacted on the inventory the anchorage? No, we are reasonably insulated because of because of our input cost being reasonably controlled.
Okay, understood. Thank you.
Operator
Thank you. We’ll take our next question from the line of Parikshit Kabra from PK Day. Please go ahead.
Avinash Karumanchi
Hi. Thank you and congratulations. I want to follow up from the previous question itself. My understanding of of why how. I’m assuming the reason we are building our inventory is because we see that one of course the demand is coming. But also I’m guessing that we expect our input inventory, the raw material, the old laptops will also increase in price over time. If we don’t think that’s going to happen then why would we build up our inventory so aggressively? At this point
Chandresh Malpani
We are also building up inventory because our input cost will also go up. And hence in this situation we are building in anticipation before any cycle of ice increase. We are taking inventory position before that. And that is the reason we are able to sell at a price. Yeah,
Avinash Karumanchi
Got it. Perfect. And we are planning on using this ability, you know the strength of a balance sheet to build up this inventory to expand volumes rather than necessarily expand margin. That’s our strategy for this year. Is that, is that a fair understanding?
Chandresh Malpani
Well I will say right balance of both. But if this is the line this is the time when we can really expand and expand our proposition exponentially. So I think if you are able to do that we should be. We should do that.
Avinash Karumanchi
Demand isn’t
Chandresh Malpani
The bottom and trust is exactly what we said
Avinash Karumanchi
Makes sense. So let’s play this out for another year. Saraji. But assuming that this cycle goes on let’s say not only till January 28 but even till January 29 and if the growth continues at this speed and as intensive working capital intensive our business is do you foresee needing to raise capital again this year?
Chandresh Malpani
No, we don’t see that situation and we obviously the inventory will not go to meaning at very. We’ll continue to monitor our inventory also we say by 2829 we, we do not see any need for any capital inclusion in the company and we will be able to manage on the basis of this and on the business of cash approvals.
Avinash Karumanchi
Perfect.
Chandresh Malpani
Also be mindful of the fact that the equity base is reasonably comfortable. Right. That having said and on the back of that our net level is at about 300 odd crores. So there’s reasonable headroom available for there being more real visibility in terms of need for equity as we stand.
Avinash Karumanchi
Got it. So thank you. Last question I had was the debtor days as someone had raised earlier has risen to about 40 days. And you explained that there are new distributors who require certain level of credit. But should we assume that it will now remain stable at 40, 45 days or is there a chance that this can get more?
Chandresh Malpani
No, we intend to maintain them at these levels. We do not want to increase that any further. And the reason the bad data because we are going in a territory which was heretofore only in the domain of brand new guys.
Avinash Karumanchi
Perfect. Thank you so much
Operator
Ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Sharat Khandelwal for closing comments over to you.
Chandresh Malpani
Thank you. Thank you all for joining this call. So we are very excited. The journey that we started last year continues to grow and the tailwinds are now available. These changes are permanent, structural and fundamental. These are with a new category creation that with all audacity we started not only in India but entire international market including us from countries is channel risk and other risk defining greater acceptance. The proposition of our equal to new computers with warranty is an unbeatable proposition.
And day by day we intend to capitalize on this Demand is in the bottleneck. Trust is and we are solving the trust. And trust premium is the high margin lever. That’s all I can say. So GND sits in a category where the direction is unambiguous here. And the winners are the ones who solve trust. And we intend to solve the trust. Thank you all for joining this call.
Operator
Thank you, members of the management team on behalf of G and G Electronics Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.