Redington Limited declared a dividend of ₹6.00 per equity share and approved its audited financial results for the fiscal year ended March 31, 2026, during its 33rd Annual General Meeting (AGM) held on July 29, 2026. The meeting, conducted via video conferencing or other audio-visual means in compliance with Ministry of Corporate Affairs circulars, also facilitated the reappointment of key board members and the appointment of a new independent director.

The proceedings were governed by Regulation 30 read with Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Prof. J. Ramachandran, Chairman, presided over the meeting, which commenced at 11:00 a.m. IST. The statutory auditor, M/s Deloitte Haskins & Sells, and the secretarial auditor, M/s B Chandra and Associates, were represented at the event. All requisite registers and documents were made available for electronic inspection as mandated by law.

Key Resolutions Passed

Shareholders transacted both ordinary and special business items. The primary focus was on the approval of financial statements and the declaration of dividends. The following resolutions were passed:

Board Composition Changes

The Board approved the reappointment of S. V. Krishnan, who retires by rotation, as a Director. Additionally, he was reappointed as the Whole Time Director with the designation of "Finance Director." The shareholders also passed a special resolution to appoint Mr. Ajay Rotti Jayathirtha (DIN: 07065697) as a Non-Executive Independent Director, strengthening the company's independent oversight structure.

Engagement and Voting

The Chairman introduced the Directors and Key Managerial Personnel, including Managing Director & Group CEO V S Hariharan and CFO V Ravishankar. Members were afforded the opportunity to raise queries via email and by registering as speaker shareholders. The Chairman addressed all questions raised during the session. Following the conclusion of the formal proceedings, a 30-minute window was opened for e-voting on the National Securities Depository Limited platform. The results of the e-voting are to be announced within two working days and posted on the company’s website.

Redington Limited reported its highest-ever quarterly revenue and profit for Q1FY27, with consolidated net profit after tax (PAT) surging to ₹4.86 billion (₹486 crore), a 77% increase year-on-year when including the Arena investment. Consolidated revenue from operations reached ₹349.22 billion, up 34% from ₹269 billion in Q1FY26. 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 to 2.03% from 1.54%. This broad-based growth underscores the company’s expanding market share and effective cost management across its global footprint.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 29, 2026, pursuant to Regulation 33 and Regulation 52(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee on July 28, 2026, and subjected to a limited review by Deloitte Haskins & Sells Chartered Accountants LLP, the statutory auditors. Management highlighted that working capital days improved significantly, dropping by five days year-on-year to 32 days globally, reflecting enhanced cash conversion efficiency.

Financial Performance Overview

On a standalone basis, Redington Limited reported a net profit of ₹321.01 crore for the quarter ended June 30, 2026, up from ₹200.21 crore in the corresponding period last year. Revenue from operations on a standalone basis stood at ₹20,753.20 crore. The consolidated earnings per share (EPS) were ₹6.22, compared to ₹3.52 in Q1FY26. The company achieved a return on capital employed (ROCE) of 22.2% and a return on equity (ROE) of 18.8%, indicating strong capital efficiency. The debt-to-equity ratio remained conservative at 0.39 times.

Segment-wise Analysis

The growth was broad-based across both reportable segments. The SISA segment contributed ₹21,126.29 crore to revenue, up 63% from ₹12,994.89 crore in Q1FY26. Its segment result improved to ₹484.73 crore from ₹318.48 crore. Within SISA, India Distribution saw revenue grow by 63%, with EBITDA rising 54% and PAT increasing 60%. The 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. Excluding Arena, ROW revenue grew by 16%, while EBITDA grew by 64% and PAT by 81%.

Business Segment Momentum

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 sustained market demand. The Mobility Solutions Group (MSG) grew 21% year-on-year, led by demand for premium smartphones and the continued expansion of retail-led distribution models. The Technology Solutions Group (TSG) grew 50% year-on-year, driven by the execution of large enterprise and data-centre deals, along with healthy growth in the underlying business.

What the Numbers Show

A key analytical observation is the disproportionate rise in consolidated net profit relative to revenue growth, driven by margin expansion and improved working capital management. The EBITDA margin expansion to 2.03% reflects improved operating leverage. The absence of exceptional items in Q1FY27, compared to a ₹152.31 crore charge in Q4FY26, and a decline in finance costs as a percentage of revenue likely contributed to this margin improvement. Additionally, the reduction in working capital days by five days year-on-year to 32 days indicates stronger cash flow dynamics, despite free cash flow remaining negative at ₹995 crore due to significant changes in working capital.

Operational Updates

The company continues to expand its global presence, having incorporated PT Redington Technology Indonesia and Redington (Thailand) Limited during the quarter. Post-quarter, it added Aladeem Al Ahmar for Computer and Mobile phone Trading and Services LLC in Iraq. ProConnect, the logistics arm, achieved all-time high quarterly revenues with a 38% YoY growth, maintaining an EBITDA margin of 9%. Management noted that while operations are adapting to geo-political situations in the Middle East, no material adverse effects on the financial position are foreseen. Ind AS 29 was applied for subsidiaries using Turkish Lira, with no significant impact on consolidated results.