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We met Sharad Khandelwal, Founder and MD, to understand GNG’s growth outlook. Management remains confident of a sustained growth trajectory, supported by structurally higher new-device prices (up ~80% since Nov-25, driven by an AI-led squeeze on memory, processor, and storage supply) and rising acceptance of refurbished products. It believes the ongoing pricing reset is structural rather than a temporary phenomenon, with no meaningful correction expected at least till CY29. It remains confident of strategically leveraging higher inventory levels (143 days in FY26 vs 101/126 days in FY24/FY25) to support scale, improve product availability, and enhance gross margin (GM). GNG highlighted the rising adoption of refurbished ICT products in India, while international revenue still accounts for majority of the mix (~64%/67% in 1QFY27/FY26); with scope to increase pricing from ~1/3rd currently to ~40% of new-device cost, without materially denting demand, GNG sees a favorable runway for both revenue growth and margin expansion. Management reiterated FY27 revenue guidance of 30% growth and expects PAT margin expansion by 75-100bps. We expect robust growth in FY27 and beyond, aided by industryleading warranty-backed products (up to 3Y), strong pricing power, and a favorable industry backdrop. We retain FY26-29E revenue/EBITDA/EPS CAGR of ~24%/30%/37%; maintain BUY (Moat in ESG-aligned refurbished market; initiate with BUY) and DCF-based TP of Rs725 (implying 27x Sep-28E PER).

Rising adoption of refurbished devices in India; GNG a key beneficiary

Management highlighted the rising acceptance of refurbished ICT products in India, particularly among enterprises, supporting both volume growth and pricing power. It reiterated GNG’s strong competitive positioning, aided by its 750+ procurement partner network, which provides sourcing security, an in-house repair over replacement refurbishment model, and a broad 5k+ customer touchpoint base (including 3 large national distributors). Together, these capabilities provide GNG with an edge across sourcing, refurbishment, and distribution, supporting its ability to scale with the market.

Higher pricing power; India emerging as a more premium market

New device prices have risen 80% since Nov-25, widening the price gap vs refurbished devices and pulling corporate demand forward as buyers pre-empt further increases. With refurbished devices currently priced at 1/3rd of new, GNG sees price headroom to 40% without materially denting demand. The widening absolute price gap, now at >Rs126 (Rs180 for new device vs <Rs54 for refurbished – 30% of new), up from ~Rs70 earlier (Rs100 vs Rs30), further supports demand for refurbished PCs. Management believes India will become a more premium-oriented market, led by rising AI adoption, student demand, and improving economic prosperity.

Higher WC strategy working in GNG’s favor

Management remains confident of leveraging elevated inventory levels (143 days in FY26 vs 101/126 days in FY24/FY25) as a strategic lever to support scale, ensure better product availability, and improve GM. The elevated inventory position also provides an advantage amid the continued rise in input/new-device prices. Management remains confident of proactively anticipating price corrections and adjusting inventory positions accordingly, given that any impact is expected to be gradual rather than sudden; management does not expect any sharp correction in prices in the near term at least until CY29.

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