Prolonged West Asia crisis impacting Middle East operations
The crisis disrupted March performance; management expects softness in Q1 and Q2 FY27. Insurance coverage was withdrawn, and logistics costs rose.
Redington · Material risks, their source context, and severity in the latest available quarter.
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Risk intelligence
The crisis disrupted March performance; management expects softness in Q1 and Q2 FY27. Insurance coverage was withdrawn, and logistics costs rose.
Arena reported a loss of ₹44 crore (Redington share ₹22 crore) plus impairment of ₹75 crore. Management expects losses to continue for another year.
Unlike COVID, the current shortage is not accompanied by a demand spike, so gross margin expansion may be limited. Working capital could increase.
KSA grew only 5% for the full year and declined 12% in Q4 due to government reprioritization. Recovery may take time.