India Revenue Growth
50%
+50% YoY
India business grew 50% YoY in Q4, driven by PC pre-buying, large deals, and strong mobility demand.
REDINGTON
Other
23 Apr 2026
Redington Ltd — Q4 FY26
Redington delivered its best quarter ever with revenue of ₹33,269 crore (+25% YoY) and PAT (ex-exceptionals) of ₹467 crore (1.4% margin).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Redington delivered its best quarter ever with revenue of ₹33,269 crore (+25% YoY) and PAT (ex-exceptionals) of ₹467 crore (1.4% margin). India led with 50% revenue growth and 41% PAT growth, driven by PC pre-buying ahead of component shortages, large deals (~₹1,500 crore in endpoint solutions, ~₹1,100 crore in PSG), and strong mobility/SSG momentum. Middle East was impacted by the West Asia crisis (March disruption), but Africa and GCCL continued strong. SSG now contributes 17% of revenue (up from 15% in FY25). Management expects India momentum to continue, Middle East softness in H1 FY27, and sustained SSG growth. Key risk: prolonged West Asia crisis could further pressure Middle East operations and margins.
Key Numbers
SSG Revenue Share
17%
+2pp YoY
SSG now contributes 17% of full-year revenue, up from 15% in FY25, reflecting higher-margin mix shift.
Large Deal Pipeline
₹2,500 crore
+60% YoY
Full-year large deals totaled ~₹2,500 crore, with Q4 alone at ₹1,600+ crore; pipeline expected to grow.
AIPC Penetration in India
41%
+41% of PC revenue
AI PCs (>40 TOPS) accounted for 41% of India PC revenue, indicating premiumization and AI adoption.
Management Guidance
India growth to continue; Middle East soft in H1 FY27
Management expects India momentum to sustain, while Middle East will be soft in Q1 and possibly Q2 due to the West Asia crisis.
Management guidance growthSSG to sustain 30%+ growth trajectory
SSG (cloud, software, security) expected to maintain or accelerate growth above 30%, driven by cloud, AI exchange, and security catch-up.
Management guidance growthOpex investment to continue for 1-2 years
Elevated opex due to capability building in SSG and technology will persist for 1-2 years, but AR provisions and war-related costs should normalize.
Management guidance marginsTargeting 2.2-2.4% EBITDA margin (ex-Arena)
Excluding Arena, management expects EBITDA margin of 2.2-2.4% and RoCE above 18% (currently ~20%).
Management guidance marginsKey Risks
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.
high · management_commentaryArena business continues to drag profitability
Arena reported a loss of ₹44 crore (Redington share ₹22 crore) plus impairment of ₹75 crore. Management expects losses to continue for another year.
high · analyst_questionComponent shortage may not boost margins like COVID
Unlike COVID, the current shortage is not accompanied by a demand spike, so gross margin expansion may be limited. Working capital could increase.
medium · management_commentarySaudi Arabia demand slowdown
KSA grew only 5% for the full year and declined 12% in Q4 due to government reprioritization. Recovery may take time.
medium · analyst_questionNotable Quotes
This has been our best quarter so far from both revenue and profit perspective.
India had a fantastic quarter. The business grew topline by 50% and the profit after tax by 41% during the quarter.
We are very sensitive to our shareholder needs. We have additional capital needs for growth opportunities and are cautious about the evolving geopolitical uncertainty.
Frequently Asked Questions
What was Redington's revenue in Q4 FY26?
Redington reported revenue of ₹33,213 Cr in Q4 FY26, representing a +25% change compared to the same quarter last year.
What guidance did Redington management give for FY27?
India growth to continue; Middle East soft in H1 FY27: Management expects India momentum to sustain, while Middle East will be soft in Q1 and possibly Q2 due to the West Asia crisis. SSG to sustain 30%+ growth trajectory: SSG (cloud, software, security) expected to maintain or accelerate growth above 30%, driven by cloud, AI exchange, and security catch-up. Opex investment to continue for 1-2 years: Elevated opex due to capability building in SSG and technology will persist for 1-2 years, but AR provisions and war-related costs should normalize. Targeting 2.2-2.4% EBITDA margin (ex-Arena): Excluding Arena, management expects EBITDA margin of 2.2-2.4% and RoCE above 18% (currently ~20%).
What are the key risks for Redington in FY27?
Key risks include 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.; Arena business continues to drag profitability — Arena reported a loss of ₹44 crore (Redington share ₹22 crore) plus impairment of ₹75 crore. Management expects losses to continue for another year.; Component shortage may not boost margins like COVID — Unlike COVID, the current shortage is not accompanied by a demand spike, so gross margin expansion may be limited. Working capital could increase.; Saudi Arabia demand slowdown — KSA grew only 5% for the full year and declined 12% in Q4 due to government reprioritization. Recovery may take time..
Did Redington meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Redington Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.