Redington (REDINGTON) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 30,959 crores (₹30,921.73 crore reported in statutory filings), up 16% year-over-year, and PAT of INR 436 crores (₹413.39 crore reported), up 9% year-over-year.

• Growth was broad-based across geographies: India up 25%, UAE up 19%, GCC up 29%, Africa up 14%, with SISA revenue up 24% YoY and ROW excl. Arena up 18% YoY.

• Strong performance in Mobility (15% YoY), Endpoint Solutions Group (21% YoY), and Software Solutions Group (40% YoY); SSG vertical up 46% in ROW.

• Arena subsidiary reported a loss of INR 22 crores due to ongoing economic challenges and business exits.

• 9MFY26 global revenue rose 18% YoY, with PAT up 17%.

Financial highlights

• Q3FY26 global revenue: ₹30,959 Cr (+16% YoY), PAT: ₹436 Cr (+9% YoY); consolidated net profit at ₹413.39 crore.

• Working capital days reduced to 28; net debt/equity at 0.08x; ROCE at 22.1% for the quarter.

• Gross margin declined by 47 bps YoY, mainly due to Arena and TSG margin compression.

• Factoring costs reduced to INR 33 crores from INR 71 crores YoY; free cash flow for Q3FY26: ₹217 Cr.

• Basic and diluted EPS for Q3 FY2026 were ₹5.57 on a consolidated basis.

Outlook and guidance

• SSG expected to maintain 40%+ growth across all markets; focus on digital platforms, cloud, and software-led growth.

• ESG and Mobility in India to remain strong, but headwinds expected in Middle East and Africa.

• TSG growth to be high single digit, with focus on data center deals and ROCE.

• Arena expected to reach break-even by next year as business exits complete.

• Working capital days expected to normalize to 35-40 days; ROCE target range 18-20%.