Redington to hold investor meeting on May 29

0 min read     Updated on 23 May 2026, 07:35 AM
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Jubin VScanX News Team
AI Summary

Redington Limited announced an investor conference on May 29, 2026, organized by 360 One Capital in Mumbai. The 1x1 or group meeting starts at 10:00 am and will not discuss unpublished price sensitive information.

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Redington Limited has announced that its officials will attend an investor conference scheduled for May 29, 2026. The meeting is being organized by 360 One Capital (B&K) and will be held in Mumbai. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The interaction is classified as a 1x1 or group meeting and is set to commence at 10:00 am onwards. The company has clarified that the discussions will be strictly based on publicly available information. No unpublished price sensitive information (UPSI) is intended to be discussed during the interactions.

Meeting Details

The following table outlines the specific details regarding the scheduled investor meeting:

Date & Time Nature of Meeting Organized by Place
29 May 2026
10:00 am onwards
1x1 / Group Meeting 360 One Capital (B&K) Mumbai

Redington Limited noted that changes to the schedule may occur due to exigencies on the part of the host or the company. This information has also been uploaded to the company's website as required under Regulation 46(2) of the SEBI regulations.

Historical Stock Returns for Redington

1 Day5 Days1 Month6 Months1 Year5 Years
+0.56%+1.80%-2.73%-22.38%-23.74%+140.59%

What key financial metrics or strategic updates is Redington Limited likely to highlight to investors given current market conditions in the IT distribution sector?

How might Redington's participation in this investor conference influence institutional investor sentiment and potential changes in shareholding patterns?

What are the broader growth strategies Redington is pursuing in emerging markets or new technology segments that investors may seek clarity on?

Redington FY26 Revenue Rises 20%; Board Declares ₹6 Dividend

10 min read     Updated on 21 May 2026, 03:07 AM
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Ashish TScanX News Team
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Redington Limited reported a 20% year-on-year increase in consolidated revenue to ₹1,19,347 crore for FY26, driven by strong performance in India and growth across key verticals like SSG and MSG. Q4 FY26 revenue reached ₹33,269 crore, up 25%, with a net profit of ₹467 crore excluding exceptional items. The Board recommended a final dividend of ₹6 per share and fixed the record date as July 03, 2026.

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Redington Limited has announced its audited financial results for the quarter and year ended March 31, 2026, reporting record annual revenue and strong quarterly growth. The Board of Directors, at their meeting held on May 13, 2026, approved the standalone and consolidated financial results audited by Deloitte Haskins & Sells, Chartered Accountants, who issued an unmodified opinion. The company delivered global consolidated revenue of ₹33,269 crore for Q4 FY26, representing a year-on-year increase of 25%. For the full fiscal year FY26, consolidated revenue reached ₹1,19,347 crore, growing 20% year-on-year. The Board has recommended a final dividend of ₹6 per equity share of ₹2 each (300% of face value) for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting.

Q4 FY26 Consolidated Financial Performance

The company reported a consolidated net profit of ₹467 crore for Q4 FY26, excluding exceptional items, with a net profit margin of 1.40%. The quarter reflected strong performance particularly in India, where revenue grew 50% and net profit grew 41%, fueled by increased demand in the PC business, large enterprise deals, and cloud and cybersecurity offerings. The following table summarises the key consolidated financial highlights for the quarter:

Metric: Q4 FY26 Q4 FY25 Change (YoY)
Revenue ₹33,269 crore ₹26,440 crore +25%
Net Profit ₹467 crore ₹391 crore +16%
Net Profit Margin 1.40% 1.50% -10 bps

While revenue grew substantially year-on-year, the net profit margin saw a slight contraction compared to the previous year. The consolidated profit before exceptional item and tax for Q4 FY26 stood at ₹547.53 crore, compared to ₹522.37 crore in Q4 FY25. An exceptional item of ₹(152.31) crore was recognised during the quarter, representing an impairment of the trade name intangible asset of Redington Gulf FZE's subsidiary Arena Bilgisayar Sanayi Ve Ticaret A.S in Turkey, based on challenging economic conditions and revised future projections. The impact on consolidated PAT after non-controlling interests was ₹75.24 crore.

Standalone Financial Performance

On a standalone basis, Redington reported revenue from operations of ₹19,587.44 crore for Q4 FY26, compared to ₹13,121.36 crore in Q4 FY25. The standalone profit before tax for Q4 FY26 was ₹388.67 crore, and profit for the quarter was ₹288.55 crore. For the full year, standalone revenue from operations was ₹63,801.19 crore versus ₹48,902.50 crore in FY25. The key standalone financial metrics are presented below (₹ in crore):

Metric: Q4 FY26 Q4 FY25 FY26 FY25
Revenue from Operations 19,587.44 13,121.36 63,801.19 48,902.50
Profit Before Tax 388.67 276.08 1,571.06 1,698.21
Profit for the Period 288.55 209.45 1,243.90 1,443.76
Basic EPS (₹) 3.69 2.68 15.91 18.47
Diluted EPS (₹) 3.69 2.68 15.91 18.47

The standalone net worth as at March 31, 2026, stood at ₹5,302.89 crore, with equity share capital of ₹156.35 crore and other equity of ₹5,146.54 crore. Key standalone financial ratios for the year include a debt equity ratio of 0.29 times, current ratio of 1.34 times, operating margin of 2.16%, and net profit margin of 1.47%.

Q4 FY26 Vertical Performance — SISA vs ROW

The investor presentation provided a detailed breakdown of Q4 FY26 revenue across business verticals for the SISA (South Asia including India and South Asia) and ROW (Rest of World, primarily MEA) geographies. The table below presents the segment-wise performance (₹ in crore):

Vertical: SISA Q4 FY25 SISA Q4 FY26 SISA YoY ROW Q4 FY25 ROW Q4 FY26 ROW YoY Global Q4 FY25 Global Q4 FY26 Global YoY
ESG 3,991 5,839 +46% 3,854 4,175 +8% 7,845 10,014 +28%
TSG 2,957 4,267 +44% 1,709 1,981 +16% 4,666 6,248 +34%
SSG 1,943 2,513 +29% 2,345 3,084 +32% 4,289 5,597 +31%
MSG 4,411 7,184 +63% 4,933 3,930 -20% 9,345 11,115 +19%
Renewable Energy 43 29 -32% 2 3 +19% 45 32 -29%
Logistics 156 192 +23% 91 107 +19% 247 300 +22%
Other Services 21 21 0% 140 48 -65% 161 69 -57%

The SISA region was the primary growth engine in Q4 FY26, with the Mobility Solutions Group (MSG) surging 63% and the End Point Solutions Group (ESG) rising 46% year-on-year. The Technology Solutions Group (TSG) also delivered strong SISA growth of 44%. In the ROW segment, MSG declined 20% year-on-year, while SSG grew 32%, reflecting divergent trends across geographies.

Full Year FY26 Vertical Performance

For the full fiscal year FY26, all major verticals reported growth at the global level. The annual segment-wise breakdown (₹ in crore) is presented below:

Vertical: SISA FY25 SISA FY26 SISA YoY ROW FY25 ROW FY26 ROW YoY Global FY25 Global FY26 Global YoY
ESG 15,613 19,825 +27% 16,183 17,003 +5% 31,796 36,828 +16%
TSG 11,061 12,625 +14% 6,022 6,670 +11% 17,084 19,295 +13%
SSG 6,283 8,737 +39% 8,145 11,096 +36% 14,428 19,834 +37%
MSG 16,543 23,267 +41% 17,864 19,018 +6% 34,407 42,285 +23%
Renewable Energy 126 96 -24% 28 7 -73% 154 103 -33%
Logistics 584 689 +18% 382 410 +7% 967 1,098 +14%
Other Services 83 83 -1% 997 212 -79% 1,080 295 -73%

The Software Solutions Group (SSG) was the standout performer for the full year, growing 37% globally, driven by cloud, cybersecurity, and software licensing adoption across both SISA and ROW. MSG recorded the highest absolute revenue at the global level, reaching ₹42,285 crore for FY26, up 23% year-on-year.

Consolidated Balance Sheet Highlights

As at March 31, 2026, consolidated total assets stood at ₹33,838.94 crore, compared to ₹27,584.17 crore as at March 31, 2025. Total equity (including non-controlling interests) was ₹10,423.98 crore. The key balance sheet metrics are summarised below (₹ in crore):

Particulars: March 31, 2026 March 31, 2025
Total Non-Current Assets 1,310.40 1,358.66
Total Current Assets 32,528.54 26,225.51
Total Assets 33,838.94 27,584.17
Equity (Shareholders of Company) 10,160.73 8,721.04
Non-Controlling Interests 263.25 476.16
Total Equity 10,423.98 9,197.20
Total Non-Current Liabilities 398.37 365.36
Total Current Liabilities 23,016.59 18,021.61
Total Liabilities 23,414.96 18,386.97

Consolidated trade receivables stood at ₹21,569.46 crore as at March 31, 2026, while inventories were ₹8,170.70 crore. Cash and cash equivalents on the consolidated balance sheet were ₹1,109.76 crore. The consolidated basic and diluted EPS for FY26 was ₹19.06, compared to ₹20.53 in FY25.

Cash Flow Performance

The investor presentation disclosed cash flow details for Q4 FY26 and the full fiscal year. For Q4 FY26, net cash flow from operations stood at ₹(883) crore, compared to ₹463 crore in Q3 FY26 and ₹202 crore in Q4 FY25, reflecting a significant increase in working capital requirements. Free cash flow for Q4 FY26 was ₹(999) crore. The quarterly cash flow details are presented below (₹ in crore):

Particulars: Q4 FY25 Q3 FY26 Q4 FY26
Profit Before Taxation 1,148 538 395
Non-cash Items (525) 129 257
Finance Cost 82 79 72
Changes in Working Capital (361) (117) (1,465)
Direct Tax Paid (141) (165) (142)
Net Cash Flow from Operations 202 463 (883)
Capex (82) (112) (48)
Outflow of Finance Cost (87) (134) (69)
Free Cash Flow 34 217 (999)

For the full fiscal year, consolidated net cash generated from operating activities was ₹231.35 crore in FY26, compared to ₹292.62 crore in FY25. The annual consolidated cash flow summary is as follows (₹ in crore):

Particulars: FY26 FY25
Profit Before Tax 1,697.09 2,334.81
Cash Generated from Operating Activities 745.73 817.15
Income Taxes Paid (net) (514.38) (524.53)
Net Cash from Operating Activities 231.35 292.62
Net Cash from / (used in) Investing Activities (10.40) 559.86
Net Cash used in Financing Activities (999.48) (1,171.10)

Board Decisions and Corporate Governance

The Board of Directors at their meeting held on May 13, 2026, recommended a final dividend of ₹6 per equity share of ₹2 each (300% of face value) for the financial year 2025-26, subject to the approval of members at the ensuing Annual General Meeting. The company has fixed Friday, July 03, 2026, as the Record Date for determining eligibility for the dividend. The thirty-third AGM of the company will be held on Wednesday, July 29, 2026, through Video Conferencing/Other Audio-Visual Means. Additionally, the Board approved the re-appointment of Mr. S V Krishnan as Whole-time Director and Finance Director for a period of five years effective from May 13, 2026, to May 12, 2031, subject to shareholder approval. Mr. S V Krishnan is a Chartered Accountant, Cost Accountant, and Company Secretary who has been with Redington since 1998 and was adjudged as "the Great Indian CFO Leader of the Year – IT Sector" award for the year 2024 by Transformance Group.

Corporate Developments

During the quarter ended March 31, 2026, several notable corporate developments took place. Redington International Mauritius Ltd, a wholly owned subsidiary, completed its re-domiciliation from Mauritius to the United Arab Emirates in line with the Group's strategic objectives, with no change in ultimate ownership or control. Arena Mobile İletişim Hizmetleri ve Tüketici Elektroniği Sanayi ve Ticaret A.Ş was merged with Arena Connect Teknoloji Sanayi ve Ticaret A.Ş, the subsisting entity, effective February 09, 2026, as part of an internal restructuring of the Turkey-based step-down subsidiary Arena Bilgisayar. Additionally, Redington Kenya (EPZ) Limited was dissolved with effect from January 28, 2026. The company continues to assess the evolving situation in the Middle East to mitigate any prospective risks to its global footprint and does not foresee any material adverse effects on its financial position resulting from the geo-political conflict.

Business Segment Overview

Redington's portfolio spans six key business verticals, each serving distinct technology distribution needs:

  • ESG (End Point Solutions Group): Consumer and commercial PCs, print and supplies
  • TSG (Technology Solutions Group): Networking, server and storage, power and collaboration
  • MSG (Mobility Solutions Group): Smartphones and feature phones
  • SSG (Software Solutions Group): Cloud and professional services, software licensing and subscription, enterprise security solutions
  • Renewable Energy: Solar panels and inverters
  • Logistics (ProConnect Supply Chain Solutions): Logistics, warehousing, transportation and value-added services

Outlook

Management attributed the growth to the company's evolution from a traditional distributor to a technology solutions orchestrator. Redington remains focused on expanding market reach, deepening partner engagement, and building capabilities in AI-led infrastructure and digital services. The company continues to monitor geopolitical developments to maintain operational resilience.

Historical Stock Returns for Redington

1 Day5 Days1 Month6 Months1 Year5 Years
+0.56%+1.80%-2.73%-22.38%-23.74%+140.59%

How will Redington's strategic shift toward AI-led infrastructure and digital services impact its margin profile over the next 2-3 years, given the current net profit margin compression despite strong revenue growth?

What are the potential long-term consequences of the Arena Bilgisayar impairment in Turkey, and could deteriorating economic conditions in emerging markets trigger further write-downs across Redington's ROW portfolio?

Given the significant negative free cash flow of ₹999 crore in Q4 FY26 driven by working capital expansion, how sustainable is Redington's current growth trajectory without straining its balance sheet or increasing leverage beyond the current 0.29x debt-equity ratio?

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1 Year Returns:-23.74%