Redington (REDINGTON) Q1 26/27 earnings summary

Executive summary

• Q1 FY2027 delivered record revenue and PAT, with consolidated revenue up 34% YoY to INR 34,966 crore and PAT up 77% to INR 486 crore, outpacing revenue growth.

• India (SISA) led with top-line up 63% and PAT up 60%, while all business units posted strong double-digit growth.

• ProConnect subsidiary and all markets contributed to highest ever quarterly results despite geopolitical challenges.

• The company maintained its number 1 position in India and Middle East Africa, and remains among the top 10 global tech distributors.

• Unaudited standalone and consolidated financial results for Q1 FY2026-27 were approved and reviewed by the Board and auditors on July 29, 2026.

Financial highlights

• Consolidated revenue: INR 34,966 crore (+34% YoY); EBITDA: INR 751 crore (+67% YoY); PAT: INR 486 crore (+77% YoY).

• Excluding Arena, revenue grew 41% YoY to INR 33,794 crore and profit reached INR 517 crore.

• SISA revenue up 63%, EBITDA up 50%, PAT up 56%; ROW revenue up 6% (incl. Arena), EBITDA up 121%, PAT up 143%.

• Working capital days improved to 32 from 37 YoY; ROCE at 22%.

• Standalone revenue was INR 20,753.20 crore, with net profit at INR 321.01 crore for Q1 FY2026-27.

Outlook and guidance

• Data center deal pipeline in India is robust, with expectations of continued strong execution in upcoming quarters.

• Focus on accelerating business growth through digital platforms, subscription models, and expanding software and cloud portfolios.

• Q2 is expected to be strong due to festive season and new product introductions, but price hikes in PCs and smartphones may dampen consumer demand in later quarters.

• Arena losses likely to persist through the current year, with strategic options under evaluation.

• The company continues to monitor geopolitical risks in the Middle East but does not foresee material adverse effects as of the reporting date.