Redington (REDINGTON) Q1 26/27 earnings summary

Executive summary

• Q1 FY2027 delivered record revenue and PAT growth, with consolidated revenue at INR 34,966 crore (up 34% YoY) and PAT at INR 486 crore (up 77% YoY), outpacing revenue growth and reflecting strong operating leverage and disciplined execution despite geopolitical and supply chain challenges.

• India (SISA) led with 63% top-line and 60% PAT growth, while Middle East & Africa (ROW) grew 15% overall, with standout performance in GCC-Levant (95%) and Africa (39%).

• All business units posted double-digit growth, with professional services, digital platform adoption, and ProConnect subsidiary supporting overall group performance.

• Unaudited standalone and consolidated financial results for Q1 FY2026-27 were approved and reviewed by the Board and auditors on July 29, 2026.

Financial highlights

• Consolidated revenue: INR 34,966 crore, up 34% YoY; excluding Arena, revenue grew 41% YoY to INR 33,794 crore; consolidated profit for the quarter was INR 486 crore.

• EBITDA: INR 751 crore, up 67% YoY; PAT: INR 486 crore, up 77% YoY; basic and diluted EPS (consolidated) at ₹6.22, up from ₹3.52 YoY.

• Arena posted a loss of INR 64 crore (Redington share: INR 31 crore) due to lower revenue and margin compression.

• Working capital days improved to 32 from 37 YoY; ROCE at 22%.

• Debt-to-equity at 0.39x; free cash flow remained negative at ₹(995) Cr due to increased working capital requirements.

Outlook and guidance

• Data center deal pipeline in India is robust, with expectations of continued strong execution in upcoming quarters.

• Focus on accelerating business growth through digital platforms, subscription models, and expanding software and cloud portfolios.

• Q2 and Q3 are expected to be strong due to festive season and new product introductions, but price hikes in PCs and smartphones may dampen consumer demand in later quarters.

• The company continues to monitor geopolitical risks in the Middle East but does not foresee material adverse effects on its financial position as of the reporting date.