Redington (REDINGTON) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 revenue and profit growth, with global revenue (excluding Arena) up 24% and profit up 15% year-over-year; consolidated revenue reached ₹25,951.99 crore and profit ₹231.20 crore.

• Strong performance in India, UAE, and KSA, with SISA region revenue up 23% and PAT up 29% year-over-year.

• Mobility Solutions Group and Cloud Solutions led with 44% and 41% growth respectively; Technology Solutions Group up 21% but faced margin pressure.

• Arena (Turkey) faced economic stress and Concordat filings, resulting in an $8M one-time provision.

• Appointment of Mr. V S Hariharan as Managing Director and Group CEO for five years was approved.

Financial highlights

• Q1FY26 global revenue (excluding Arena) was ₹23,934 Cr, up from ₹19,328 Cr; consolidated profit for the quarter was ₹231.20 crore, up from ₹186.44 crore year-over-year.

• PAT margin (excluding Arena) at 1.32% for the quarter; operating margin was 2.37%, and net profit margin was 1.57%.

• Gross margin declined 60 bps year-over-year to 5.1%, mainly due to PayNet divestment, Arena stress, and large TSG deals.

• Working capital days improved to 37, down 2 days year-over-year.

• Factoring cost for the quarter was INR 31 crores, down from INR 68 crores year-over-year.

Outlook and guidance

• Optimistic on growth in Cloud, AI-driven digital transformation, and Software Solutions; targeting operating profit margin of 2.3%-2.5% and PAT above 1.3% for the year.

• Forward-looking statements highlight risks from macroeconomic trends, currency fluctuations, regulatory changes, and competitive pressures.

• No capital infusion planned for Arena; strategy in Turkey under review.

• Financial statements prepared in compliance with Ind AS 34 and SEBI regulations.