Cement Products Q2 FY2026 Sector Insights

Computers Hardware & Equipments Sector Analysis: Navigating Digital Transformation, Supply Chain Dynamics, and AI-Driven Growth

The Computers Hardware & Equipments sector is currently undergoing a significant transformation, driven by a confluence of factors including accelerating AI adoption, evolving enterprise refresh cycles, persistent component shortages, and a strong policy push towards domestic manufacturing and digital infrastructure. This analysis synthesizes insights from GNG Electronics Limited (refurbished PCs), Rashi Peripherals Limited (IT distribution), iValue Infosolutions Limited (IT solutions and cybersecurity distribution), Control Print Limited (coding, marking, and packaging solutions), and TVS Electronics Limited (IT peripherals and customer support services) to provide a comprehensive overview of the industry's landscape, financial health, competitive dynamics, and future outlook. The sector exhibits diverse business models, from high-volume, low-margin distribution to specialized solutions and manufacturing, all navigating a dynamic environment characterized by both opportunities and challenges.

A. Industry Overview & Market Landscape

The Computers Hardware & Equipments sector encompasses a broad range of activities, from the distribution of new IT products and components to the refurbishment of used devices, the provision of specialized IT infrastructure and cybersecurity solutions, and the manufacturing of industrial coding/marking equipment and IT peripherals. The market is characterized by a strong interplay between global supply chain dynamics, technological advancements, and regional demand drivers.

**Total Addressable Market Size and Growth Rates:** While specific aggregate market sizes for the entire sector are not provided, individual company performances and management commentary offer insights into various sub-segments. The global refurbished PC segment is experiencing a favorable landscape, driven by affordability and availability issues in the new PC market. The Indian PC market, a key focus for Rashi Peripherals and TVS Electronics, delivered over 10% YoY growth in Q3 FY26, indicating robust domestic demand. India's AI market is projected to expand significantly from $1.25 billion in 2024 to $13 billion in 2025 and $17 billion by 2027, creating substantial demand for AI infrastructure. Similarly, India's data center capacity, currently at 1,253 MW operating at nearly 97% utilization, is expected to scale to about 8,000 MW by 2030, signaling massive investment opportunities in this space.

**Market Structure and Segmentation:** The sector can be broadly segmented by product, service, and customer type:

• **Refurbished PCs:** GNG Electronics operates in this segment, offering "as good as new" devices at roughly one-third the price of new ones. This segment is gaining traction due to rising new PC prices and component shortages.
• **IT Distribution:** Rashi Peripherals focuses on distributing 82 global technology brands across personal computing, enterprise solutions, lifestyle, and IT essentials. iValue Infosolutions specializes in value-added distribution of cybersecurity, data center infrastructure, information lifecycle management, and application lifecycle management solutions.
• **Industrial Coding & Marking / Packaging:** Control Print is a market leader in India for coding and marking solutions, with an installed base of over 22,000 printers. They are also expanding into track and trace, digital printing, and packaging solutions (V-Shapes).
• **IT Peripherals & Customer Support Services:** TVS Electronics manufactures and distributes IT peripherals like POS systems, thermal printers, keyboards, and mice, alongside offering comprehensive customer support services (CSS).

**Key End Markets and Applications:** The end markets are diverse: * **Enterprise & Institutional:** A significant customer base for GNG, Rashi, and iValue, driven by refresh cycles, digital transformation, and AI adoption. * **Retail, BFSI & Logistics:** Core industries for TVS Electronics' hardware solutions. * **Manufacturing & Energy:** Critical sectors for Control Print's coding and marking, and increasingly for iValue's OT cybersecurity solutions. * **Hyperscalers & Data Centers:** Major consumers of AI infrastructure and high-density compute, impacting component supply for the broader market. * **Pharmaceuticals & Agrochemicals:** Emerging markets for Control Print's track and trace solutions due to compliance needs.

**Geographic Distribution and Regional Dynamics:** * **International Focus:** GNG Electronics has a strong international presence, with approximately 60% of its revenues from overseas (40% US, 40% Europe, 20% Middle East), supplying to 44 countries. Control Print is expanding into the Middle East and has subsidiaries in the UK, Netherlands, and Italy for its V-Shapes and coding businesses. * **India-Centric with Global Linkages:** Rashi Peripherals, iValue Infosolutions, and TVS Electronics primarily serve the Indian market but are deeply integrated into global supply chains for components and brands. Rashi has established a UAE subsidiary for SAARC operations. The "Make in India" initiative is a significant driver for TVS Electronics.

**Market Maturity and Lifecycle Stage:** The sector exhibits a mix of mature and emerging segments. Traditional IT distribution and peripherals are mature but constantly evolving with new technologies (e.g., AI-ready devices). The refurbished PC market is gaining maturity and acceptance. Specialized solutions like AI infrastructure, OT cybersecurity, and advanced packaging (V-Shapes) are in earlier, high-growth stages, representing significant future opportunities.

**Industry Value Chain and Ecosystem:** The value chain involves global component manufacturers (e.g., memory, storage), brand OEMs, distributors (like Rashi and iValue), solution providers, system integrators, and end-users. Companies like GNG and TVS Electronics also engage in manufacturing/refurbishment. Customer support and managed services (TVS Electronics, iValue) are integral parts of the ecosystem. The increasing complexity of IT infrastructure and cybersecurity solutions highlights the critical role of value-added distributors and system integrators.

B. Financial & Economic Profile

The financial performance across the companies reflects their diverse business models, market positions, and the prevailing industry dynamics. While all companies demonstrate revenue growth, profitability and return profiles vary significantly.

**Industry Aggregate Revenue Scale and Growth Trajectory:** The companies analyzed show robust revenue growth, particularly in Q3 FY26.

| Company | Q3 FY26 Revenue (Mn/Cr) | Q3 FY26 YoY Growth | 9M FY26 Revenue (Mn/Cr) | 9M FY26 YoY Growth | FY25 Revenue (Cr) | 4-year CAGR (FY25) | | :---------------------- | :---------------------- | :----------------- | :---------------------- | :----------------- | :---------------- | :----------------- | | GNG Electronics | INR 4,872.2 Mn | 40.3% | INR 12,394 Mn | 29.7% | - | - | | Rashi Peripherals | INR 4,030 Cr | 43% | INR 11,338 Cr | 5% | - | 32.5% | | iValue Infosolutions | INR 670.1 Cr (Gross) | 3.1% | INR 2,164.2 Cr (Gross) | 22.4% | - | - | | Control Print (Standalone) | INR 109 Cr | 16% | INR 322 Cr | 15% | INR 395 Cr | - | | TVS Electronics | INR 1,136 Mn | 13.6% | INR 3,378 Mn | 6.9% | INR 4,305 Mn | - |

• **GNG Electronics** leads in Q3 FY26 revenue growth at 40.3% YoY, driven by strong demand for refurbished PCs and increased ASPs. Their 9M FY26 growth stands at 29.7%.
• **Rashi Peripherals** also reported exceptional Q3 FY26 growth of 43% YoY, attributed to 50% volume growth and 50% ASP/dollar appreciation. Their 9M FY26 growth is more modest at 5%, largely due to a high base in the previous year which included large project orders (INR 2,000 crores in 9M FY25). Excluding these large deals, their base business grew 24% for 9M FY26.
• **iValue Infosolutions** showed 3.1% YoY gross sales growth in Q3 FY26, but 9M FY26 gross sales growth was a healthy 22.4%. Q3 was impacted by the exceptionally strong Q2 FY26 which saw closure of a large deal (over INR 150 crores).
• **Control Print** exhibited steady growth, with Q3 FY26 operating revenue up 16% YoY and 9M FY26 revenue up 15% YoY.
• **TVS Electronics** recorded 13.6% YoY revenue growth in Q3 FY26, with 9M FY26 growth at 6.9%.

**Profitability Levels Across Companies:** Profitability metrics vary significantly, reflecting different business models. Distribution businesses typically operate on thinner margins compared to manufacturing or value-added solutions.

| Company | Q3 FY26 Gross Margin | Q3 FY26 EBITDA Margin | Q3 FY26 PAT Margin | 9M FY26 EBITDA Margin | 9M FY26 PAT Margin | | :---------------------- | :------------------- | :-------------------- | :----------------- | :-------------------- | :----------------- | | GNG Electronics | 20.8% | 11.2% | 7.9% | 11.0% | 7.3% | | Rashi Peripherals | - | 2.95% | 1.85% | 2.88% | 1.72% | | iValue Infosolutions | 8.8% (on gross sales) | 4.5% (on gross sales) | 3.0% (on gross sales) | 4.2% (on gross sales) | 2.8% (on gross sales) | | Control Print (Consolidated) | 58.1% | - | - | - | - | | TVS Electronics | - | 5.72% | 0.35% | 3.73% | (0.47)% |

• **Gross Margin:** Control Print, with its manufacturing and consumables-driven model, reports the highest gross margin at 58.1% in Q3 FY26 (consolidated). GNG Electronics follows with a strong 20.8% gross margin. iValue Infosolutions' gross margin on gross sales is 8.8%, but on net sales, it's 26.1%, reflecting its value-added distribution model.
• **EBITDA Margin:** GNG Electronics demonstrates strong EBITDA margins, reaching 11.2% in Q3 FY26, a 200 bps increase YoY. iValue Infosolutions also maintains healthy EBITDA margins at 4.5% on gross sales (13.3% on net sales). Rashi Peripherals, typical for a high-volume distributor, operates on much thinner EBITDA margins of 2.95%. TVS Electronics improved its Q3 FY26 EBITDA margin to 5.72%, a significant 262 bps YoY increase.
• **PAT Margin:** GNG Electronics reported a robust 7.9% PAT margin in Q3 FY26, with PAT growing 102.8% YoY. iValue Infosolutions achieved 3.0% PAT margin on gross sales (8.8% on net sales). Rashi Peripherals' PAT margin was 1.85%, while TVS Electronics, despite improvements, had a modest 0.35% PAT margin in Q3 FY26 and was still negative for 9M FY26. Control Print's PAT growth was 19% YoY, though lower than PBT growth due to higher tax provisions.

**Return Profiles (ROCE, ROE):** Return metrics provide insight into capital efficiency.

• **GNG Electronics:** Not explicitly stated, but management expects ROE and ROCE to remain strong, implying healthy returns.
• **Rashi Peripherals:** Reported a Net Debt to Equity of 0.50x as of FY25. ROCE is in the low teens, with an aspiration to return to pre-IPO levels in 2-3 years. PAT CAGR for FY25 was 15.4%.
• **iValue Infosolutions:** Achieved an adjusted ROCE of 21.5% in Q3 FY26 and 22.2% for 9M FY26. ROE stood at 15.2% in Q3 FY26 and 15.3% for 9M FY26, indicating strong capital efficiency.
• **TVS Electronics:** Reported negative ROCE of (0.79)% and ROE of (4.09)% for FY25, highlighting the need for sustained profitability improvements. Their Debt to Equity ratio was 0.34x in FY25.

**Working Capital Characteristics and Cash Conversion Cycles:** Working capital management is crucial, especially for distribution businesses.

• **GNG Electronics:** Working Capital Days are 120-130 days (Q3 FY26), stable QoQ and YoY. Management notes high working capital intensity as the main growth driver, given low fixed capital/capex.
• **Rashi Peripherals:** Working Capital Days were 60 days in 9M FY26, stable from 54 days in 9M FY25. Inventory days marginally increased to 56 from 51, while debtor days improved significantly to 47 from 61 a year ago. Creditor days were 43. Operating Cash Flow YTD was positive at INR 34 crores.
• **iValue Infosolutions:** Working Capital Days were 51 days as of Dec 31, 2025, predominantly flat. This indicates efficient working capital management for a value-added distributor.
• **Control Print:** Not explicitly stated, but the business model with high consumables revenue suggests good cash flow from operations.
• **TVS Electronics:** No specific working capital days mentioned, but improved EBITDA margins suggest better operational cash generation.

**Capital Intensity Requirements:** Capital intensity varies by business model. * **GNG Electronics:** Characterized by high working capital intensity but low fixed capital/capex, as growth is primarily driven by inventory and sales. * **Rashi Peripherals:** A distribution business, typically requires significant working capital for inventory and receivables but relatively lower fixed assets. * **iValue Infosolutions:** Similar to Rashi, it's a distribution model with a focus on intellectual capital (pre-sales, post-sales, services) rather than heavy fixed assets. * **Control Print:** Requires capital for manufacturing facilities (coding and marking), R&D (expensed, e.g., 800,000 Euro in Italy), and new ventures like V-Shapes. However, core coding and marking business needs only maintenance capex. * **TVS Electronics:** Investing in new SMT lines at its Tumakuru facility, indicating moderate capital expenditure for manufacturing expansion.

**Revenue Quality:** * **iValue Infosolutions:** A significant portion of its business is annuity-led, accounting for 41.9% of gross sales in 9M FY26 (up 34.1% YoY). This provides strong revenue visibility, stability, and higher margin predictability (EBITDA margins for renewal business are 1-1.5 percentage points higher). * **Control Print:** Its coding and marking business has a "sticky" nature, with 58% of Q3 FY26 revenue from consumables and 15% from services, indicating recurring revenue streams from its installed base of 22,000+ printers.

C. Competitive Structure & Dynamics

The competitive landscape within the Computers Hardware & Equipments sector is diverse, reflecting the different sub-segments. Each company operates within its specific niche, facing distinct competitors and employing unique differentiation strategies.

**Number of Players and Market Concentration:** * **Refurbished PCs:** GNG Electronics operates in a growing but likely fragmented global market. Their expansion to 44 countries and 4,745 customer touchpoints indicates a significant, albeit not necessarily dominant, position. * **IT Distribution:** Rashi Peripherals is a major player in India, distributing 82 global brands to over 10,000 partners. iValue Infosolutions is a specialized value-added distributor with 111 OEM partners and 943 unique partners, focusing on enterprise solutions. The distribution market is generally competitive, with multiple national and regional players. * **Industrial Coding & Marking:** Control Print identifies three main competitors: B2J, Domino, and Markem-Imaje. They claim an 18-20% market share among organized players in India, suggesting a moderately concentrated market with a few dominant players. * **IT Peripherals:** TVS Electronics is a market leader in Touch POS systems and Thermal printers in India, and a pioneer in Dot matrix, Keyboards, and mice. This indicates a strong position in specific peripheral categories.

**Competitive Intensity Assessment:** * **Pricing Pressure:** High in commodity-driven distribution segments (like some of Rashi's products). However, component shortages and rising prices for new PCs are creating a favorable environment for refurbished PCs (GNG) and allowing distributors (Rashi) to pass on price increases. * **Differentiation:** Key to success across all segments. * **Entry Barriers:** Moderate to high. For distributors, it's about network, brand relationships, and working capital. For manufacturers, it's R&D, technology, and installed base. For specialized solutions, it's expertise and service capabilities.

**Entry Barriers and Competitive Moats:** * **GNG Electronics:** Moats include its own brand "Electronics Bazaar," pioneering extended warranties (3 years in India, 1 year internationally), global supply chain, and increasing customer touchpoints (4,745). * **Rashi Peripherals:** Moats are its pan-India network (10,000+ partners, 55 branches, 70 warehouses), 36+ years of experience, and strong relationships with 82 global technology brands. Their focus on demand creation and integrated solutions also differentiates them. * **iValue Infosolutions:** Moats include its specialized focus on cybersecurity, DCI, ILM, and ALM, its large OEM partner base (111), annuity-led business model (41.9% of gross sales), and investment in Centers of Excellence and pre-sales/post-sales capabilities. * **Control Print:** Moats are its "sticky" business model (difficult for competitors to take customers), market leadership in specific segments (cement, plywood, sugar, dairy), an installed base of 22,000+ printers, and patented technologies like V-Shapes (till 2036). They claim to have the "best product stack." * **TVS Electronics:** Moats include 3+ decades of presence, market leadership in specific product categories (Touch POS, Thermal printers), extensive distribution and service network (700+ authorized distribution partners, 740+ authorized service partners, 19,250+ pin codes served), and "Make in India" manufacturing capabilities.

**Pricing Power Dynamics and Pricing Trends:** * **New PCs/Components:** Rising memory and storage prices (DDR5 8GB RAM up ~270%, 16GB RAM up ~3.4x from Oct 2025 to Jan 2026) have led to new PC prices increasing by roughly 20%, with further increases expected. This gives distributors like Rashi Peripherals the ability to pass on price hikes, contributing to revenue growth even with flattish unit demand. * **Refurbished PCs:** GNG Electronics benefits from the rising prices of new PCs, making refurbished devices more attractive due to their affordability (one-third the price of new) and availability. Their ASPs for laptops and non-laptops increased in Q3 FY26. * **Coding & Marking:** Control Print has already implemented price increases in its core coding and marking business, indicating some pricing power due to the "sticky" nature of its products and services. * **Distribution Margins:** Rashi Peripherals notes that distribution margins are normally a fixed percentage, but economies of scale and efficiency can lead to better margins.

**Differentiation Strategies Employed:** * **GNG Electronics:** Focus on brand building ("Electronics Bazaar"), extended warranties, and global market penetration with a strong supply chain for refurbished products. * **Rashi Peripherals:** Evolving from traditional distribution to a "technology adoption enabler" by focusing on demand creation, integrated AI-ready and energy-efficient solutions, and expanding into underpenetrated geographies. * **iValue Infosolutions:** Specialization in high-growth, complex IT domains (cybersecurity, DCI, AI/OT convergence), annuity-led business, and strong pre-sales/post-sales support. * **Control Print:** Technological superiority ("best product stack"), patented innovations (V-Shapes, Track and Trace), and a comprehensive solution approach beyond compliance (e.g., business intelligence for Track and Trace). * **TVS Electronics:** "Make in India" manufacturing, bundling hardware with software solutions for specific sectors (retail, parking), expanding contract manufacturing, and robust customer support services (CSS) leveraging an AI/ML-enabled platform.

**Consolidation Trends and M&A Activity:** * **iValue Infosolutions** is actively looking for suitable M&A opportunities, particularly to enhance its capabilities in emerging areas like AI and OT convergence. * **Control Print** mentioned that cash flow beyond dividends could be used for acquisitions, though it's early to say.

D. Operational Characteristics

Operational efficiency, capacity management, and technological adoption are critical for success in the Computers Hardware & Equipments sector. Companies are investing in expanding their physical footprint, enhancing manufacturing capabilities, and strengthening their human capital.

**Capacity and Utilization Trends Across Companies:** * **GNG Electronics:** Significantly increased its facilities to 8 in UAE (from 3), taken a bigger facility in Navi Mumbai, and is increasing space in the US market, indicating aggressive capacity expansion to meet growing demand for refurbished PCs. * **Control Print:** Its core coding and marking business operates at about 65% to 70% capacity utilization, suggesting room for growth within existing infrastructure. They are also setting up a pilot line for V-Shapes recyclable material in Nalagarh. * **TVS Electronics:** Investing in new Surface Mount Technology (SMT) lines at its Tumakuru facility, enhancing its manufacturing capabilities for IT peripherals. Its factory is 70,000 Sq. ft of ESD compliant space.

**Production Economics and Cost Structures:** * **Control Print:** COGS as a percentage of operating revenue was around 41% in Q3 FY26, showing slight improvement from earlier periods (42-43%). Manufacturing costs are low at ~2% of operating revenue. Employee costs were 19% in Q3 FY26, impacted by gratuity provisions and staff incentives. R&D costs (e.g., 800,000 Euro in Italy) are expensed, not capitalized. * **GNG Electronics:** Warranty costs are low, ranging from 10 to 12 basis points, accounted for in COGS, with a cumulative provision of INR 1.3 crores over actual costs. This indicates efficient quality control in their refurbishment process. * **TVS Electronics:** Improved EBITDA margins in Q3 FY26 were attributed to a reduction in other expenses and material costs, suggesting better procurement and operational efficiencies.

**Supply Chain Structure and Dependencies:** * **Global Dependencies:** All companies are, to varying degrees, dependent on global supply chains for components (RAM, storage, processors) and finished goods. The current environment highlights the vulnerability to component shortages and price volatility. * **Rashi Peripherals:** Leverages a vast pan-India network of 70 warehouses and 55 branches, ensuring broad reach and efficient logistics. Their UAE subsidiary facilitates material pickup from Hong Kong or Dubai for SAARC countries. * **GNG Electronics:** Benefits from the global technology landscape, sourcing and supplying refurbished PCs across 44 countries, with UAE being its largest international facility. * **TVS Electronics:** Strengthening its supply ecosystem and enhancing manufacturing capabilities through SKD (Semi-Knocked Down) and CKD (Completely Knocked Down) at its Tumakuru factory, aligning with the "Make in India" initiative. * **iValue Infosolutions:** Works with 111 OEM partners, implying a diverse supply base for its specialized IT solutions.

**Technology Landscape and Innovation Pace:** * **AI Adoption:** A major theme across the sector. * **Rashi Peripherals:** Increasing focus on integrated AI-ready solutions. * **iValue Infosolutions:** Building capabilities in AI and OT (Operational Technology) convergence, recognizing AI workloads are fundamentally reshaping infrastructure requirements (high-density compute, security). They see AI as an opportunity, opening new market segments. * **Control Print:** Investing in digital printing and track and trace solutions, which often leverage advanced data analytics and potentially AI for business intelligence. * **TVS Electronics:** Developing an in-house CRM AI/ML-enabled platform for customer support services. * **Refurbishment Technology:** GNG Electronics' ability to deliver "as good as new" experience at one-third the price suggests sophisticated refurbishment processes. * **Patented Technologies:** Control Print holds patents for V-Shapes (till 2036) and track and trace solutions, indicating a commitment to innovation.

**Operational Efficiency Benchmarks:** * **Working Capital Days:** Rashi Peripherals (60 days) and iValue Infosolutions (51 days) demonstrate efficient working capital management, which is crucial for distribution businesses. GNG Electronics has higher working capital days (120-130 days), reflecting its inventory-heavy refurbishment model. * **Doubtful Debt Provisions:** Rashi Peripherals' provision for doubtful debt was very low at 0.006% in 9M FY26 (down from 0.020%), indicating strong credit risk management.

**Key Performance Indicators (Company-Specific and Industry Averages):** * **GNG Electronics:** Volume (units sold), ASP, international sales proportion (60%), customer touchpoints (4,745). * **Rashi Peripherals:** Volume growth (50% of Q3 FY26 revenue growth), SKU count (18,110), partner network (10,000+). * **iValue Infosolutions:** Annuity-led business percentage (41.9%), OEM partners (111), funnel pipeline (over INR 4,500 crores). * **Control Print:** Installed printer base (22,000+), revenue breakup (consumables 58%, services 15%), capacity utilization (65-70%). * **TVS Electronics:** Revenue by segment (PSG 71%, CSS 29%), logistics coverage (>90% of districts), service partner network (740+).

**Asset Efficiency Metrics:** * **ROCE/ROE:** iValue Infosolutions shows strong ROCE (22.2%) and ROE (15.3%) for 9M FY26. Rashi Peripherals aims to improve its low teens ROCE. TVS Electronics has negative ROCE/ROE for FY25, indicating a need for better asset utilization and profitability.

E. Growth Dynamics & Drivers

The sector is experiencing robust growth, propelled by a combination of macro-economic trends, technological advancements, and strategic company-specific initiatives. Both volume and price increases are contributing to revenue expansion, while geographic and product diversification unlock new opportunities.

**Historical Growth Trajectory:** * **Rashi Peripherals:** Achieved a 4-year revenue CAGR of 32.5% and a PAT CAGR of 15.4% by FY25, demonstrating strong historical growth. * **Control Print:** Showed consistent revenue growth from FY23 (INR 295 crores) to FY25 (INR 395 crores), with 9M FY26 revenue at INR 322 crores.

**Current Growth Rates and Acceleration/Deceleration:** * **GNG Electronics:** Exhibiting accelerated growth with Q3 FY26 revenue up 40.3% YoY and 9M FY26 up 29.7% YoY. PAT growth is even higher at 102.8% YoY for Q3 FY26. * **Rashi Peripherals:** Q3 FY26 revenue grew 43% YoY, a significant acceleration. However, 9M FY26 growth was 5% YoY due to a high base from large project orders in the prior year. Excluding these, base business growth for 9M FY26 was 24%. * **iValue Infosolutions:** 9M FY26 gross sales grew 22.4% YoY, with PAT growing 26.9% YoY, indicating healthy underlying momentum despite a softer Q3 FY26 (3.1% gross sales growth) due to large deal timing. * **Control Print:** Q3 FY26 operating revenue grew 16% YoY, and 9M FY26 revenue grew 15% YoY, showing consistent double-digit growth. * **TVS Electronics:** Q3 FY26 revenue grew 13.6% YoY, with 9M FY26 growth at 6.9% YoY. PSG segment drove Q3 growth with 19.7% YoY increase.

**Volume vs Price Contribution to Growth:** * **Rashi Peripherals:** Q3 FY26 revenue growth of 43% was driven approximately 50% by volume growth and 50% by ASP/dollar appreciation. This highlights the significant impact of rising component prices. * **GNG Electronics:** Q3 FY26 volume grew to 186,000 units (from 143,000 units in Q3 FY25), a 30% increase. ASPs also increased across laptops (INR 28,800, up ~INR 1,000 QoQ) and non-laptops (INR 18,200, up from INR 17,900), indicating both volume and price contributions.

**Organic vs Inorganic Growth Components:** * **Rashi Peripherals:** Current growth is organic, as 9M FY26 had no large project orders (unlike the previous year). * **iValue Infosolutions:** Primarily organic, but actively looking for M&A opportunities to fuel future growth. * **Control Print:** Organic growth in core business, with new divisions (Track and Trace, Packaging, Safety) contributing to diversification.

**Geographic Expansion Opportunities and Progress:** * **GNG Electronics:** Expanded supply to 44 countries (from 38) and increased facilities in UAE (8 from 3) and the US, demonstrating active international expansion. * **Control Print:** Established a small setup in the Middle East (4-5 people) to service existing customers and replicate technological advantages across the Middle East and Africa. * **Rashi Peripherals:** UAE subsidiary established for SAARC countries, with medium-term plans for broader business expansion. Launched a new branch in Solapur, expanding its pan-India network.

**Product/Service Innovation Pipeline:** * **GNG Electronics:** Focus on strengthening brand visibility and customer engagement through targeted digital outreach programs. * **Rashi Peripherals:** Expanding product portfolio and market reach by introducing new products and SKUs, with a significant new partnership with Dell expected to contribute substantially from FY27. * **iValue Infosolutions:** Building capabilities in AI and OT convergence, focusing on four converging domains: data center and edge infrastructure, cybersecurity for cyber-physical systems, ALM cloud and AI platforms, and information and model life cycle management. * **Control Print:** Developing new solutions in Track and Trace (pilot projects with pharma companies), V-Shapes (single polymer recyclable material), and expanding its Safety Division. Also bringing Codeology products (label applicators, barcode scanners) to India. * **TVS Electronics:** Bundling hardware products with inbuilt software solutions for retail and parking, enhancing manufacturing capabilities (SKD, CKD), and expanding contract manufacturing services.

**Adjacent Market Opportunities:** * **AI Infrastructure:** A major driver for iValue Infosolutions (data center, edge infrastructure, ALM, ILM) and Rashi Peripherals (AI-ready solutions). * **OT Cybersecurity:** iValue Infosolutions sees a significant opportunity in securing operational technology systems, especially with AI convergence. * **Track and Trace:** Control Print is targeting pharmaceutical and potentially agrochemical sectors for compliance and business intelligence solutions. * **Packaging:** Control Print's V-Shapes technology and co-packing activities represent a new growth vertical. * **Electronics Manufacturing Services (EMS):** TVS Electronics is integrating EMS with its product groups and expanding contract manufacturing services.

**Customer Acquisition and Penetration Trends:** * **GNG Electronics:** Increased customer touchpoints to 4,745 (from 4,150), indicating successful customer acquisition. * **Rashi Peripherals:** Serves 10,000+ partners/B2B customers, with a focus on penetrating underpenetrated geographies. * **iValue Infosolutions:** Did business with 500+ unique partners in Q3 FY26 and 943 unique partners in 9M FY26, demonstrating a broad customer base for its specialized solutions.

F. Risk Landscape

The sector faces a range of risks, from global supply chain disruptions and technological shifts to economic sensitivities and regulatory changes. Companies are actively managing these risks through diversification, strategic partnerships, and operational efficiencies.

**Industry-Wide Systematic Risks:** * **Component Shortages and Price Volatility:** A major current risk. Rising memory and storage prices (DDR5 RAM up 270-340% in three months) are materially impacting new PCs, leading to price increases (20% so far, with more expected) and potential shipment declines (IDC estimates 8.9% decline for new PCs in 2026). This affects distributors like Rashi Peripherals and manufacturers like TVS Electronics. While it benefits GNG Electronics by making refurbished PCs more attractive, it still impacts the overall market dynamics. * **Global Economic Slowdown:** Can impact enterprise IT spending and consumer demand for PCs and peripherals. Corporate refresh cycles can be extended (2 to 3 years to 3 to 4 years) due to budget constraints, though some preponing purchases to avoid future price hikes. * **Technological Obsolescence:** Rapid advancements in technology, particularly AI, can quickly render older hardware or solutions less competitive. However, companies like iValue Infosolutions are actively building capabilities in AI to turn this into an opportunity.

**Cyclicality and Economic Sensitivity:** * The PC market has historically been cyclical, influenced by enterprise refresh cycles and consumer spending. The current cycle is influenced by Windows 10 end-of-support and the emergence of AI-ready devices. * Large deals can significantly influence quarter-on-quarter and year-on-year numbers for companies like iValue Infosolutions, making their revenue streams somewhat lumpy.

**Regulatory and Policy Risks by Geography:** * **New Labor Code:** All companies (Rashi, iValue, Control Print, TVS Electronics) have recognized incremental provisions for gratuity obligations, leave liabilities, and enhanced employee benefits, indicating a direct financial impact. * **India-EU FTA:** Control Print expects "absolutely no consequence" for its core business, as main competitors manufacture in China. It might make exports cheaper. * **Track and Trace Regulations:** Control Print's Track and Trace division is primarily a compliance-based business (e.g., L1-L5 for pharmaceutical), making it susceptible to changes in regulatory mandates. However, this also creates a captive market.

**Technology Disruption Threats:** * **Laser Printers:** Control Print views laser printers as having fundamental limitations (material compatibility, contrast, safety, print quality on recycled materials) and not a major threat to its core coding and marking business, expecting only gradual increase. * **AI Impact on SIs:** iValue Infosolutions believes the role of System Integrators (SIs) remains relevant for application development and human interface for AI logic, mitigating the risk of AI completely displacing their services.

**ESG and Sustainability Challenges:** * **Refurbished Market:** GNG Electronics' business model inherently contributes to sustainability by extending the life of electronic devices, reducing e-waste. * **Recyclable Materials:** Control Print is working on developing single polymer recyclable material for its V-Shapes packaging, addressing environmental concerns.

**Supply Chain Vulnerabilities:** * **Concentration Risk:** The reliance on a few global memory and storage manufacturers (e.g., Micron) creates vulnerability. Rashi Peripherals noted Micron (Crucial consumer brands) stopping, which is expected to be a "dent" in the next financial year, though enterprise business continues with backup plans. * **Geopolitical Tensions:** Can disrupt global shipping and component availability.

**Competitive Threats:** * **New Entrants/Substitutes:** Constant threat across all segments. GNG Electronics faces competition from other refurbished providers, while Control Print competes with established global players. * **Market Share Erosion:** Intense competition can lead to pressure on pricing and market share.

**Customer Concentration Risks:** * **TVS Electronics:** Top 10 customer concentration was 36% in FY25, indicating some reliance on a few large clients. * **iValue Infosolutions:** Large deals can significantly impact quarterly results, implying some concentration risk in specific periods. However, their broad base of 943 unique partners mitigates overall risk. * **GNG Electronics:** Strategy of non-dependence on any single customer or channel.

G. Capital Allocation & Investor Returns

Capital allocation strategies vary across the companies, reflecting their growth stages, business models, and profitability levels. Investments are primarily directed towards growth initiatives, R&D, and working capital, with some companies also focusing on shareholder returns.

**Capex Trends and Requirements:** * **GNG Electronics:** Characterized by low fixed capital/capex, with growth primarily driven by working capital (inventory). * **Rashi Peripherals:** As a distributor, fixed capex requirements are relatively low, focusing on expanding its branch and warehouse network. * **iValue Infosolutions:** Investing in Centers of Excellence and pre-sales/post-sales capabilities, which are more intellectual capital than heavy fixed assets. * **Control Print:** The core coding and marking business requires only maintenance CapEx, which is approximately equal to depreciation. Major capital investment is in R&D for new technologies like V-Shapes and Track and Trace. They are also investing in establishing co-packaging and marketing setups for V-Shapes in the UK. * **TVS Electronics:** Investing in new Surface Mount Technology (SMT) lines at its Tumakuru facility to enhance manufacturing capabilities.

**R&D Investment Levels as % of Revenue:** * **Control Print:** Expensed 800,000 Euro in R&D costs in Italy, indicating a significant investment in innovation, particularly for its packaging division. This is expensed, not capitalized, impacting current period profitability.

**Dividend Policies and Payout Ratios:** * **GNG Electronics:** Management remains fluid on dividend and capital returns, stating the business requires fuel for growth. * **Control Print:** Pays about INR 15 crores a year in dividends, indicating a consistent return to shareholders while balancing growth investments. * **iValue Infosolutions:** Board will discuss dividend/buybacks after full FY26 performance in the listed space.

**Share Buyback Programs:** * No specific share buyback programs were mentioned by any of the companies in the provided data.

**M&A Activity and Strategy:** * **iValue Infosolutions:** Actively looking for suitable M&A opportunities, particularly to build capabilities in AI and OT convergence. * **Control Print:** Mentioned that balance cash flow after dividends could be used for acquisitions, but it's early to comment.

**Cash Generation and Free Cash Flow Profiles:** * **Rashi Peripherals:** Reported positive Operating Cash Flow (YTD) of INR 34 crores, indicating healthy cash generation from operations. * **iValue Infosolutions:** Efficient working capital management (51 days) contributes to strong cash conversion. * **Control Print:** The sticky nature of its consumables and services business, combined with low maintenance capex, suggests strong free cash flow generation from its core business.

**Capital Efficiency Improvements:** * **Rashi Peripherals:** Aiming to get ROCE back to pre-IPO levels in 2-3 years, indicating a focus on improving capital efficiency. They are open to factoring trade receivables if it adds value to ROCE/ROE. * **iValue Infosolutions:** Expects sustained operating leverage, aiming for 15 basis points improvement annually, which will enhance capital efficiency and returns.

H. Future Outlook & Projections

The future outlook for the Computers Hardware & Equipments sector is largely positive, driven by structural tailwinds like digital transformation, AI adoption, and government initiatives. However, companies must navigate ongoing supply chain challenges and competitive pressures.

**Industry Growth Projections:** * **Refurbished PCs:** Expected to play an increasingly important role due to affordability and availability issues in the new PC market, driven by memory shortages and rising new PC prices. * **New PC Shipments:** IDC estimates 2026 global new PC shipments could decline by up to 8.9% due to memory shortages and rising prices, which indirectly benefits the refurbished segment. * **AI Market:** India's AI market is projected to grow from $1.25 billion (2024) to $13 billion (2025) and $17 billion (2027), indicating massive growth potential for AI-related hardware and solutions. * **Data Center Capacity:** India's data center capacity is expected to scale to about 8,000 MW by 2030 (from 1,253 MW), creating significant demand for infrastructure solutions. * **Memory Prices:** Expected to stabilize by the end of 2027, suggesting that the current component shortage and price hike situation is a medium-term challenge. * **Domestic PC Market:** Rashi Peripherals anticipates 8-10% unit-wise growth long-term due to GDP growth, economy, digital implementation, and low PC penetration.

**Management Guidance Across Companies:** * **GNG Electronics:** * Revised FY26 revenue growth guidance: Upward to 28-30% (from ~25%). * Revised FY26 profitability improvement guidance: 150-200 basis points (from ~75 basis points). * Expects new distributor partnerships to accelerate growth *on top* of the 30% top-line guidance. * No margin compression expected in Q4 FY26 (unlike Q4 FY25). * Objective to grow faster than the refurbished segment. * **Rashi Peripherals:** * Expects similar trends in Q4 FY26: continued unit-wise consistency, with revenue growing positively due to further price hikes. * Unit-wise demand expected to be flattish for at least the next 2 quarters due to price hikes and unaffordability. * Optimistic about the enterprise vertical. * Base business (excluding large deals) growth expected to be similar to 9M FY26 (24%) for Q4, above previous guidance of 15-20%. * Dell business expected to be decent in Q4 FY26 and substantial in FY27. * ROC aspiration: To get back to pre-IPO level in 2-3 years. * **iValue Infosolutions:** * Reiterates FY26 guidance: Around 18% gross sales growth and 20%-22% PAT growth YoY. * Confident of hitting Q4 targets due to orders in hand and high confidence in upcoming orders. * Q4 FY26 expected to be the bulkiest quarter, contributing ~60% of total PAT for the full year (target INR 43-45 crores PAT). * Expects sustained operating leverage: Aiming for 15 basis points improvement annually. * Long-term outlook: Continued strength, sustained double-digit growth, further scale of annuity business, increasing contributions from AI-led infrastructure and cybersecurity, expansion in services and managed offerings. * **Control Print:** * Core Coding and Marking Business: Expected to grow at 10-12% (1.5 times GDP growth), with anticipation of growing faster (around 15%) for the next 1-2 years due to product portfolio advantages. * Foreign Subsidiaries: Expected lower loss in Q3 FY26, almost breakeven in Q4 (Italian one). Overall packaging business (India, Italy, UK) expected to be breakeven next year (FY27). * Track and Trace, Digital Printing, Packaging: Growth is difficult to predict ("hockey stick type" or "not take off") as these are "technology platform plays." * Standalone and consolidated profits expected to start merging in FY27. * **TVS Electronics:** * Focus remains on sustainable growth, deeper value addition, and consistent long-term returns. * Strategic priorities include enhancing manufacturing capabilities, bundling hardware with software solutions, expanding contract manufacturing, and strengthening customer support services.

**Emerging Opportunities and Whitespace:** * **AI + OT Inflection Point:** iValue Infosolutions identifies this as a significant opportunity, with AI moving into physical systems (factories, power grids), demanding high availability, low latency, and resilient power at the edge. This expands the cybersecurity attack surface, driving demand for AI-driven threat detection and OT-aware SOCs. * **AI-assisted Development:** Reduces coding and testing time by 25-30%, creating opportunities in Application Lifecycle Management (ALM). * **AI-ready ILM Solutions:** Accelerating demand across regulated sectors. * **Refurbished Market Growth:** The increasing cost and scarcity of new PCs position refurbished devices as a crucial, affordable alternative. * **"Make in India" & EMS:** Government push for electronics manufacturing and semiconductor self-reliance creates opportunities for local manufacturers and contract manufacturing services (TVS Electronics).

**Transformation Themes and Inflection Points:** * **Digital Transformation:** Continues to drive demand for IT infrastructure, cybersecurity, and peripherals across all sectors. * **Hybrid Cloud + Edge Architectures:** Enterprises adopting these architectures, especially with AI workloads moving closer to the edge. * **Sustainability:** Growing importance of circular economy models (refurbished PCs) and eco-friendly packaging solutions (V-Shapes recyclable material).

**Long-Term Structural Trends:** * **Low PC Penetration:** In India, combined with GDP growth and digital implementation, is expected to drive long-term unit-wise PC growth (8-10%). * **Increasing Digital Capacity Creation:** Government outlay and private investments in AI infrastructure and data centers will be a sustained growth driver. * **Evolving Threat Landscape:** Continuous need for advanced cybersecurity solutions as attack surfaces expand.

**Potential Disruptions on the Horizon:** * **Prolonged Component Shortages:** If memory and storage prices remain elevated or supply constraints worsen beyond 2027, it could significantly impact the new PC market and potentially the refurbished market's sourcing costs. * **Rapid Technological Shifts:** While AI is an opportunity, unforeseen technological disruptions could alter market dynamics.

**Expected Margin Evolution:** * **GNG Electronics:** Guided for 150-200 bps profitability improvement for FY26, with potential for further margin expansion. * **Rashi Peripherals:** Distribution margins are typically fixed, but economies of scale and efficiency could lead to better margins. No softening of prices is expected in the pipeline, hoping for stable prices. * **iValue Infosolutions:** Expects sustained operating leverage, aiming for 15 basis points improvement annually, driven by annuity-led business and fixed cost absorption. * **Control Print:** Focus on optimizing procurement costs and improving operational efficiency to reduce operating costs and increase gross margin. Expects standalone and consolidated profits to start merging in FY27 as foreign subsidiaries breakeven.

I. Company-by-Company Profiles

GNG Electronics Limited

**Company Name and Brief Description:** GNG Electronics Limited is a player in the refurbished PC segment, offering "as good as new" devices at a significantly lower price point than new ones. They operate under their own brand "Electronics Bazaar" and have a strong international presence.

**Scale Metrics:** * Q3 FY26 Revenue: INR 4,872.2 million * 9M FY26 Revenue: INR 12,394 million * Q3 FY26 Volume: 186,000 units (140,000 laptops, 46,000 other products) * 9M FY26 Volume: 487,500 units (358,000 laptops, 129,000 other products) * International Sales: ~60% of total revenues (40% US, 40% Europe, 20% Middle East) * Global Reach: Supply to 44 countries (up from 38) * Customer Touchpoints: 4,745 (up from 4,150) * Employee Strength: 1,900 (up from 1,194 at beginning of year)

**Financial Performance Summary:** * **Revenue Growth:** Q3 FY26: 40.3% YoY; 9M FY26: 29.7% YoY. * **EBITDA:** Q3 FY26: INR 545.7 million (11.2% margin, +200 bps YoY); 9M FY26: INR 1,365 million (11.0% margin, +103 bps YoY). * **PAT:** Q3 FY26: INR 386.9 million (102.8% YoY growth, 7.9% margin); 9M FY26: INR 899 million (65.5% YoY growth, 7.3% margin, +157 bps YoY). * **Gross Profit Margin:** Q3 FY26: 20.8%; 9M FY26: 20.6%. * **Net Debt (Dec 31, 2025):** INR 466 crores. * **Working Capital Days (Q3 FY26):** 120-130 days.

**Strategic Priorities and Focus Areas:** * **Brand Building:** 100% sales under "Electronics Bazaar" brand. * **Customer Engagement:** Targeted digital outreach in US and India to improve brand visibility and strengthen sales pipeline. * **Market Expansion:** Increasing facilities in UAE (8 from 3), Navi Mumbai, and US. Expanding to new countries. * **Talent Strengthening:** Investing in senior leadership, middle management, and engineering teams (added over 600 engineers). * **Strategic Partnerships:** Entered two partnerships with leading technology distributors in India. * **Differentiation:** Pioneered extended warranty concept (3 years in India, 1 year internationally). * **Focus:** Remains on refurbishment, not ITAD.

**Competitive Advantages and Positioning:** * Strong positioning in the growing refurbished PC market, benefiting from rising new PC prices and component shortages. * Global reach and diversified customer base across 44 countries. * Own brand and extended warranty offerings differentiate their products. * Agile supply chain to manage inventory and meet demand.

**Key Metrics and KPIs:** * ASP for Laptops (Q3 FY26): INR 28,800 (up ~INR 1,000 QoQ). * ASP for Non-laptops (Q3 FY26): INR 18,200 (up from INR 17,900). * Warranty Cost: 10-12 basis points (accounted in COGS).

**Management Outlook and Guidance:** * Revised FY26 revenue growth guidance: Upward to 28-30% (from ~25%). * Revised FY26 profitability improvement guidance: 150-200 basis points (from ~75 basis points). * New distributor partnerships expected to accelerate growth *on top* of 30% top-line guidance. * No margin compression expected in Q4 FY26. * ROE and ROCE expected to remain strong. * Dividend policy remains fluid, prioritizing growth.

**Recent Developments and Initiatives:** * Significant increase in employee strength and engineering talent. * Strategic partnerships with two major Indian technology distributors. * Capacity expansion in UAE, Navi Mumbai, and US.

Rashi Peripherals Limited

**Company Name and Brief Description:** Rashi Peripherals Limited is a leading Indian IT distributor with over 36 years of experience, distributing 82 global technology brands across personal computing, enterprise solutions, lifestyle, and IT essentials through an extensive pan-India network.

**Scale Metrics:** * Q3 FY26 Revenue from Operations: INR 4,030 crores * 9M FY26 Revenue from Operations: INR 11,338 crores * 4-year Revenue CAGR (FY25): 32.5% * Global Brands: 82 * Partners/B2B Customers: 10,000+ * Pan-India Network: 55 branches (new in Solapur), 70 warehouses, 50 service centers, 700+ locations. * Employee Strength: 1,582 (as of 9M FY26).

**Financial Performance Summary:** * **Revenue Growth:** Q3 FY26: 43% YoY; 9M FY26: 5% YoY (base business 24% for 9M FY26). * **PAT:** Q3 FY26: INR 75 crores (132% YoY growth, 1.85% margin); 9M FY26: INR 196 crores (25% YoY growth, 1.72% margin). * **EBITDA Margin:** Q3 FY26: 2.95%; 9M FY26: 2.88%. * **Operating Cash Flow (YTD):** INR 34 crores (positive). * **Working Capital Days (9M FY26):** 60 days (stable). * **Net Debt (Dec 31, 2025):** INR 466 crores. * **Net Debt to Equity (FY25):** 0.50x. * **Blended Cost of Borrowing:** 7.5% to 8%. * **ROCE:** Low teens (aspiration to return to pre-IPO level).

**Strategic Priorities and Focus Areas:** * **Evolution:** Beyond traditional ITC distribution to "technology adoption enabler." * **Demand Creation:** Increasing focus on integrated AI-ready and energy-efficient solutions in underpenetrated geographies. * **Portfolio Expansion:** Introducing new products and SKUs. * **Geographic Expansion:** New branch in Solapur, UAE subsidiary for SAARC. * **Partnerships:** Significant partnership with Dell. * **Credit Rating:** Upgrade to AA-/Stable (CRISIL) to reduce cost of borrowing.

**Competitive Advantages and Positioning:** * Extensive pan-India distribution network and strong relationships with global brands. * Long operating history and experience. * Focus on value-added services and demand creation. * Efficient working capital management.

**Key Metrics and KPIs:** * PES (Personal Computing & Enterprise Solutions) division: 58% of 9M FY26 revenues. * LIT (Lifestyle and IT Essentials) division: 42% of 9M FY26 revenues. * Q3 FY26 Revenue growth: ~50% volume growth, ~50% ASP/dollar appreciation. * Doubtful Debt Provision (9M FY26): 0.006% (down from 0.020%).

**Management Outlook and Guidance:** * Expects similar trend in Q4 FY26: continued unit-wise consistency, with revenue growing positively due to further price hikes. * Unit-wise demand expected to be flattish for at least next 2 quarters. * Optimistic about the enterprise vertical. * Base business growth for Q4 expected to be above 15-20% guidance (similar to 24% in 9M FY26). * Dell business expected to be substantial in FY27. * Long-term CAGR: 8-10% unit-wise growth anticipated.

**Recent Developments and Initiatives:** * New branch in Solapur. * UAE subsidiary established. * Significant Dell partnership. * Credit rating upgrade to AA-/Stable.

iValue Infosolutions Limited

**Company Name and Brief Description:** iValue Infosolutions Limited is a value-added distributor specializing in digital asset protection, data center infrastructure, information lifecycle management, and application lifecycle management solutions, with a strong focus on cybersecurity and emerging technologies like AI and OT convergence.

**Scale Metrics:** * Q3 FY26 Gross Sales: INR 670.1 crores * 9M FY26 Gross Sales: INR 2,164.2 crores * OEM Partners: 111 (9M FY26) * Unique Partners: 943 (9M FY26) * Annuity-led Business: 41.9% of 9M FY26 gross sales. * Revenue Mix (9M FY26 Gross Sales): Cybersecurity 50.6%, DCI 12.0%, ILM 25.5%, ALM/Cloud/Others 11.9%. * Employee Strength: Not specified, but investing in pre-sales, post-sales, and service capabilities.

**Financial Performance Summary:** * **Gross Sales Growth:** Q3 FY26: 3.1% YoY; 9M FY26: 22.4% YoY. * **Net Sales Growth:** Q3 FY26: -9.6% YoY; 9M FY26: 18.3% YoY. * **Operating EBITDA:** Q3 FY26: INR 30.1 crores (4.5% on gross sales, 13.3% on net sales); 9M FY26: INR 90.5 crores (4.2% on gross sales, 11.6% on net sales). * **PAT:** Q3 FY26: INR 19.9 crores (11.8% YoY growth, 3.0% on gross sales, 8.8% on net sales); 9M FY26: INR 60.0 crores (26.9% YoY growth, 2.8% on gross sales, 7.7% on net sales). * **Working Capital Days (Dec 31, 2025):** 51 days. * **ROCE (Adj.):** Q3 FY26: 21.5%; 9M FY26: 22.2%. * **ROE:** Q3 FY26: 15.2%; 9M FY26: 15.3%. * **Labor Code Impact:** Incremental provision of INR 5.7 crores.

**Strategic Priorities and Focus Areas:** * **Capability Building:** Expanding Center of Excellence, investing in pre-sales, post-sales, and service capabilities. * **Emerging Technologies:** Building capabilities in AI and OT convergence. * **Market Focus:** Four converging domains: Data center and edge infrastructure, cybersecurity for cyber-physical systems, ALM cloud and AI platforms, information and model life cycle management. * **M&A:** Actively looking for suitable opportunities.

**Competitive Advantages and Positioning:** * Specialized value-added distribution model with a focus on high-growth, complex IT solutions. * Strong annuity-led business provides revenue visibility and higher margins. * Extensive OEM partner network and broad customer base. * Efficient working capital management. * Proactive investment in emerging technologies like AI and OT.

**Key Metrics and KPIs:** * Current Funnel Pipeline: Over INR 4,500 crores (qualified, pruned CRM funnel). * Win Rate for Pipeline: Traditionally 30-35%. * EBITDA margins for renewal business: 1 to 1.5 percentage points higher than normal business.

**Management Outlook and Guidance:** * Reiterates FY26 guidance: Around 18% gross sales growth and 20%-22% PAT growth YoY. * Confident of hitting Q4 targets. * Q4 FY26 expected to be the bulkiest quarter, contributing ~60% of total PAT for the full year (target INR 43-45 crores PAT). * Expects sustained operating leverage: Aiming for 15 basis points improvement annually. * Long-term outlook: Continued strength, sustained double-digit growth, further scale of annuity business, increasing contributions from AI-led infrastructure and cybersecurity opportunities.

**Recent Developments and Initiatives:** * Building capabilities in AI and OT convergence. * Increased funnel pipeline significantly.

Control Print Limited

**Company Name and Brief Description:** Control Print Limited is a market leader in India for coding and marking solutions, providing printers, consumables, spares, and services. They are also expanding into new divisions like Track and Trace, Packaging (V-Shapes), and Safety.

**Scale Metrics:** * 9M FY26 Total Revenue (Standalone): Approximately INR 322 crores. * FY25 Total Revenue (Standalone): INR 395 crores. * Installed Base: 22,000+ printers. * Market Share (India, organized coding/marking): 18-20%. * Revenue Breakup (Q3 FY26 Coding and Marking): Printers 18%, Consumables 58%, Spares 7%, Services 15%. * Employee Cost Increase (Consolidated): 28% YoY, 22% QoQ.

**Financial Performance Summary:** * **Operating Revenue (Standalone):** Q3 FY26: INR 109 crores (16% YoY growth). * **EBITDA Growth:** 21% YoY. * **PBT (excl. exceptional items) Growth:** 35% YoY. * **PAT Growth:** 19% YoY (lower due to higher tax provision). * **COGS as % of Operating Revenue (Q3 FY26):** ~41% (improving). * **Gross Margin (Consolidated Q3 FY26):** 58.1%. * **Codeology Group (UK) 9M FY26 Loss:** 147,000 pounds. * **CP Italy SRL (Italy):** Major loss-making entity (R&D cost 800,000 Euro expensed).

**Strategic Priorities and Focus Areas:** * **Core Business Consolidation:** Increase install base, provide robust solutions, implement price increases in coding and marking. * **New Solutions Development:** Capitalize on market opportunities in Track and Trace. * **Packaging Business:** Closely monitor and grow machine sales, co-packing, and laminates (India and overseas). * **Overseas Subsidiaries:** Focused growth targets and execution to achieve profitability. * **Diversification:** Expanding into Track and Trace, Packaging (V-Shapes), and Safety divisions. * **International Expansion:** Small setup in the Middle East.

**Competitive Advantages and Positioning:** * Market leadership in key segments (cement, plywood, sugar, dairy). * "Sticky" business model with high recurring revenue from consumables and services. * Strong technology stack and patented innovations (V-Shapes, Track and Trace). * Extensive installed base of printers.

**Key Metrics and KPIs:** * Printer Sales (9M FY26): A little over 2,100 printers. * Capacity Utilization (coding and marking): 65% to 70%. * V-Shapes Technology: Patented till 2036.

**Management Outlook and Guidance:** * Core Coding and Marking Business: Expected to grow at 10-12% (1.5 times GDP growth), with anticipation of growing faster (around 15%) for the next 1-2 years. * Foreign Subsidiaries: Expected lower loss in Q3 FY26, almost breakeven in Q4 (Italian one). Overall packaging business (India, Italy, UK) expected to be breakeven next year (FY27). * Track and Trace, Digital Printing, Packaging: Growth is difficult to predict (can be "hockey stick type"). * Q4 FY26: Expects "better results in terms of the overheads." * Standalone and consolidated profits expected to start merging in FY27. * Dividend: Pays about INR 15 crores a year.

**Recent Developments and Initiatives:** * Developed new solutions and acquired new customers in Track and Trace. * Good traction in co-packing activities for Packaging Division. * Re-established Mask lab into a Safety Division. * Working on single polymer recyclable material for V-Shapes. * Training and setup for Codeology products in India.

TVS Electronics Limited

**Company Name and Brief Description:** TVS Electronics Limited is an Indian electronics manufacturer with over three decades of presence, providing state-of-the-art hardware solutions for retail, BFSI, and logistics industries. They are market leaders in Touch POS systems and Thermal printers, and also offer comprehensive Customer Support Services (CSS).

**Scale Metrics:** * Q3 FY26 Revenue from Operations: INR 1,136 Mn * 9M FY26 Revenue from Operations: INR 3,378 Mn * FY25 Revenue: INR 4,305 Mn * Employees: 970+ * Distribution Network: 700+ Authorized Distribution Partners, 100+ Channel Distribution Partners. * Service Network: 740+ Authorized Service Partners, 57 Drop Points, 19,250+ pin codes served. * Manufacturing Facility: 70,000 Sq. ft ESD compliant factory in Tumakuru.

**Financial Performance Summary:** * **Revenue Growth:** Q3 FY26: 13.6% YoY; 9M FY26: 6.9% YoY. * **EBITDA:** Q3 FY26: INR 65 Mn (35.4% QoQ); 9M FY26: INR 126 Mn (41.6% YoY growth). * **EBITDA Margin:** Q3 FY26: 5.72% (+262 Bps YoY); 9M FY26: 3.73% (+91 Bps YoY). * **PAT:** Q3 FY26: INR 4 Mn (-75.0% QoQ); 9M FY26: INR (16) Mn (-50.0% YoY). * **PAT Margin:** Q3 FY26: 0.35%; 9M FY26: (0.47)%. * **ROCE (FY25):** (0.79)%. * **ROE (FY25):** (4.09)%. * **Debt to Equity Ratio (FY25):** 0.34x. * **Exceptional Items (Q3/9M FY26):** INR 7 Mn (new labor code impact).

**Strategic Priorities and Focus Areas:** * **Integrated Solutions:** Seamlessly integrate EMS with Product and Solution Groups (PSG), Customer Support Services (CSS), and Go-To-Market (GTM). * **Product Development:** Develop products that enhance quality of life and build strong customer partnerships. * **"Make in India":** Enhance manufacturing capabilities through SKD, CKD at Tumakuru factory. * **Hardware + Software Bundling:** Bundling hardware products with inbuilt solutions for retail and parking sectors. * **Contract Manufacturing:** Collaborate with technology partners to leverage manufacturing capabilities. * **Customer Support Services:** One-stop solution offering field support, infra-managed services, repair services, and e-auction services, supported by AI/ML-enabled platform.

**Competitive Advantages and Positioning:** * Established market leadership in specific IT peripheral categories. * Strong "Make in India" manufacturing capabilities. * Extensive distribution and service network across India. * Focus on bundling hardware with software solutions for specific industry verticals. * Integrated customer support services leveraging technology.

**Key Metrics and KPIs:** * PSG Revenue (Q3 FY26): INR 826 Mn (19.7% YoY increase). * CSS Revenue (Q3 FY26): INR 310 Mn (0.0% YoY). * Business Mix (9M FY26): PSG 71%, CSS 29%. * Top 10 Customer Concentration (FY25): 36%.

**Management Outlook and Guidance:** * Focus remains on sustainable growth, deeper value addition, and consistent long-term returns. * Strategic priorities include enhancing manufacturing, bundling hardware with software, expanding contract manufacturing, and strengthening CSS.

**Recent Developments and Initiatives:** * New Surface Mount Technology (SMT) lines at Tumakuru facility. * Development of in-house CRM AI/ML-enabled platform. * Increased volumes in IMS service offerings.