Technology solutions provider Redington Ltd delivered exceptional first-quarter results, reporting its highest-ever quarterly revenue of ₹34,966 crore compared with ₹25,952 crore in the year-ago period, marking a 34% year-on-year increase. According to the latest financial results, the company's consolidated profit after tax (PAT) surged 77% to ₹486 crore from ₹275 crore in the corresponding quarter last year, with PAT margin improving to 1.4%. Excluding exceptional items, profit after tax (PAT) grew more than twice as fast as revenue, highlighting significant operating leverage. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to ₹708 crore from ₹401 crore, representing a 76.9% growth, while EBITDA margin expanded to 2.03% from 1.54% in the previous year. The strong performance was driven by robust growth across both its Singapore, India & South Asia (SISA) and Rest of the World (ROW) segments, alongside improved operational efficiency that expanded the EBITDA margin.
Redington shares gained nearly 4% during Friday's session to an intraday high of ₹322, extending gains after the technology solutions provider reported a 77% year-on-year jump in net profit for the June quarter. The stock had surged nearly 15% during Thursday's session following the earnings announcement and touched a fresh 52-week high of ₹338.50. This marks one of the strongest sustained rallies in recent years, with the stock having surged from ₹53.85 per share to ₹338 per share over the last seven years, translating into a massive gain of 528%. The stock has also delivered cumulative returns of 71% over the last three years and 91% over the past five years. According to The Economic Times, the impressive rally demonstrates the market's positive reception to Redington's exceptional Q1 performance, with the stock significantly outperforming the broader market and highlighting strong investor appetite for technology distribution companies with strong growth fundamentals.
The company's global business excluding Arena reported impressive metrics with revenue growth of 41%, EBITDA growth of 54% and PAT growth of 64% year-on-year. As reported by the latest financial results, global business including Arena recorded revenue growth of 34%, EBITDA growth of 67% and PAT growth of 77%. The South India and South Asia (SISA) business demonstrated strong performance with revenue growing 63% year-on-year, while EBITDA increased 50% and PAT rose 56%. The SISA business reported return on capital employed (ROCE) of 28.3% and return on equity (ROE) of 26.6%. Within the SISA segment, the Mobility Solutions Group grew 21%, Technology Solutions Group expanded 50%, Software Solutions Group increased 52%, while End Point Solutions Group grew 35%. The Rest of World (ROW) segment saw revenue rise to ₹13,810.08 crore from ₹12,970.60 crore, with its segment result jumping significantly to ₹215.48 crore from ₹77.47 crore. India led the surge with revenue up 63% and profit after tax up 60%, driven by large enterprise and data-centre deals, premiumisation in mobility, and sustained cloud and cybersecurity demand. Meanwhile, revenue from the Middle East and Africa business grew 15% YoY, supported by cloud and cybersecurity offerings despite geopolitical uncertainties during the quarter.
According to the latest results, Redington recorded strong momentum across its technology portfolio during the quarter. The Software Solutions Group (SSG) grew 52% year-on-year, supported by increased adoption of cloud, cybersecurity, software-led engagements, AI-enabled solutions and subscription-based models. The Endpoint Solutions Group (ESG) grew 35% year-on-year, supported by higher PC realisations amid ongoing industry-wide memory supply constraints and steady demand. The Mobility Solutions Group (MSG) reported 21% year-on-year growth, led by strong demand for premium smartphones and the continued expansion of retail-led distribution models. The Technology Solutions Group (TSG) registered 50% year-on-year growth, driven by the execution of large enterprise and data-centre deals, along with healthy growth in the underlying business. Growth was broad-based across geographies and segments, underpinned by strong demand for cloud and cybersecurity solutions, higher PC realisations amid memory supply constraints, and premium smartphone sales. The company's logistics arm, ProConnect, posted its highest-ever quarterly revenue, up 38% year-on-year.
The company demonstrated improved capital efficiency with global working capital days declining to 32 days from 37 days a year ago, reflecting enhanced cash conversion efficiency. Redington's vendor mix continued to diversify, with Apple's contribution to revenue declining to 31% from 34% a year earlier, reducing concentration risk. Despite the strong earnings, free cash flow remained negative at ₹995 crore, compared with ₹940 crore a year ago, primarily due to higher working capital investments to support growth. The company's debt-to-equity ratio stood at 0.39 times, while return on capital employed (ROCE) was at 22.2% and return on equity (ROE) stood at 18.8%. The consolidated earnings per share (EPS) were ₹6.22, compared to ₹3.52 in Q1FY26. According to V.S. Hariharan, Managing Director & Group CEO, "We have started FY27 on a strong note, delivering our highest-ever quarterly revenue and profit. This performance reflects the strength of our diversified business model, disciplined execution and broad-based momentum across businesses and geographies. Profit growth significantly outpaced revenue growth, reinforcing our continued focus on profitable and sustainable growth."
