Redington Limited reported a 20% increase in consolidated revenue for FY26 to ₹1,19,347 crore, driven by growth across its key verticals. Profit after tax (PAT) for the financial year rose 17% to ₹1,565 crore, while EBITDA grew 7% to ₹2,414 crore. The company released its Investor Data Book for the period from Q1 FY23 to Q4 FY26, detailing these performance metrics.

For the quarter ended Q4FY26, revenue stood at ₹33,269 crore, a 25% increase year-on-year. PAT for the quarter was ₹467 crore, up 16% from the corresponding period in the previous year. EBITDA for Q4FY26 was reported at ₹670 crore. The company's gross profit for FY26 reached ₹6,042 crore, an 11% increase compared to the prior year.

Segment Performance

Revenue growth was recorded across the company's primary business verticals. The Enterprise and SMB Group (ESG) vertical generated revenue of ₹36,828 crore in FY26. The Mobility and Storage Group (MSG) contributed ₹42,285 crore, while the Technology Solutions Group (TSG) reported revenue of ₹19,295 crore. The newly reported Systems and Solutions Group (SSG) vertical recorded revenue of ₹19,834 crore for the fiscal year.

Financial Metrics

Working capital days for FY26 stood at 34 days, compared to 36 days in FY25. The return on capital employed (ROCE) for FY26 was 19.8%, while the return on equity (ROE) was 16.8%. Free cash flow for the year was negative at ₹199 crore.

Redington Limited hosted a virtual investor event on June 17, 2026, detailing the strategic progress of its Software & Services Group (SSG). Management outlined a path to scale SSG revenue to $5 Bn within the next three years, targeting a gross margin range of 5.5% to 6%. The business, which grew 29% in FY25 to reach $2.2 Bn, now constitutes 17% of the company's overall top line, up from 12% two years prior.

The company is shifting from a transaction-led model to a lifecycle-led orchestration model, focusing on platform-led distribution and recurring revenue. SSG's recurring revenue mix stands at 74%, with a renewal rate of 85%. Management expects these metrics to improve to 85% and 90% respectively over the next three years. The segment is split across software (40%), cloud (33%), security products (27%), and services (sub-1%).

Financial Snapshot and Future Targets

Redington disclosed key performance metrics for SSG and set specific targets for the next three years. The company expects operating leverage to drive profitability as margins outpace the cost base of investments.

Strategic Framework and Investments

The company's strategy rests on the "5 P's" framework: Platform, Portfolio, Professional Services, Process, and People. Key initiatives include the release of CloudQuarks (CQ) 2.0, with subsequent versions scheduled for September and December 2026. Redington is also investing in an AI Center of Excellence (COE) and building a data practice to enhance its service offerings.

Investments in SSG are predominantly opex-based (80-90%), with a targeted payback period of 3 to 5 years. The company is also exploring inorganic acquisitions to fill capability gaps, specifically smaller, strategic bolt-ons rather than large-scale mergers.

Market Opportunity and Partnerships

Management highlighted significant market opportunities, projecting the SaaS market to exceed $700 Bn by 2028. Redington is leveraging its partnerships with major vendors like Microsoft, AWS, and Palo Alto Networks. The company recently received the "Frontier" designation from Microsoft, recognizing it as a future-ready partner for AI adoption.

AWS representative Kalyan Pola highlighted the decade-long partnership, noting that Redington is one of fewer than 1% of AWS partners globally to enter a Strategic Collaboration Agreement. The partnership includes joint initiatives for cloud adoption in Tier 2 and Tier 3 cities and the establishment of a partner university for skill building.