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.

Redington has appointed Ajay Rotti Jayathirtha as an Additional Director (Non-Executive Independent Director) for a term of five years effective June 22, 2026. The appointment, subject to the approval of the company's members, extends until June 21, 2031. The Board of Directors approved the appointment pursuant to the recommendation of the Nomination and Remuneration Committee.

Mr. Ajay Rotti brings over 23 years of experience in tax and regulatory matters, including international tax, transfer pricing, and corporate tax. He is the founder of Tax Compaas, a boutique tax consulting firm, and previously served as a founding Partner at Dhruva Advisors LLP and Partner – International Taxation at KPMG. His professional background also includes tenures at BMR Advisors and Ernst & Young.

Director Profile and Expertise

Mr. Ajay Rotti is a member of the Institute of Chartered Accountants of India and holds an Advanced Diploma in Management Accounting from the Chartered Institute of Management Accountants, United Kingdom. He is a law graduate with an LLB from Karnataka State Law University and a Gold medalist in B. Com. Currently, he serves as a Director at Taxcompaas Advisors Private Limited, Two43 Solutions Private Limited, Jana Small Finance Bank Limited, and Capitalmind Trustee Private Limited. He is also a Designated Partner at Tax Compaas Global LLP.

Appointment Details

The appointment complies with the disclosure requirements specified in SEBI Circular No. SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023. The company confirmed that Mr. Ajay Rotti is not debarred from holding the office of Director by any SEBI order or other authority.