| Management target | Revenue 127.0% 3 years |
|---|
| Revenue growth | 29% USD growth YoY. |
|---|---|
| Margins | Targeting 5.5% to 6% gross margins for SSG segment. |
| Demand visibility | Strong; 74% of revenue is recurring annuity business. |
| Management confidence | High; seeking to double revenue in 3 years. |
Growth
SSG grew 29% in USD (37% in INR) and now contributes 17% of total revenue.
Outlook
Targeting $5B revenue in 3 years with 5.5-6% gross margins and 2% PAT. 90% renewals expected by FY28.
Risks
Non-physical revenue recognition complexities (IFRS), withholding tax issues, and longer AR days in SSG vs hardware.
Last quarter's promises, checked
Delivered
- Guided Q4 deal movement → Delivered large deal execution in Q4 (= BEAT)
- Guided SSG expansion → Delivered 17% revenue share vs 15% in FY25 (= BEAT)
- Guided Opex control → Delivered 17 bps decline on full year basis (= BEAT)
Partly delivered
- Guided SSG margin → Delivered tracking 5.5% vs 5.5-6% target (= PARTIAL)
Missed
- Guided Middle East recovery → Delivered March softening due to conflict (= MISS)
- Guided Arena profitability → Delivered INR 44cr loss in Q4 (= MISS)
Earnings Call filed with NSE, NSE: REDINGTON. Summary written with AI assistance from the document.
Redington Ltd: key numbers
- Share price
- ₹407.25
- Market cap
- ₹31,838 Cr
- Revenue (annual)
- ₹1,19,162 Cr
- Net profit (annual)
- ₹1,490 Cr
- P/E (TTM)
- 18.7×Sector 41.4×
- Promoter holding
- 0.00%+0.00% QoQ
- FII holding
- 61.96%Current quarter
Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.
More from Redington Ltd
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Redington Debt & Borrowing: ₹100 Cr
Redington Limited has completed the redemption of Commercial Paper worth ₹100 Crore. This repayment reduces the company's outstanding debt obligations.
- Value
- ₹100.0 Cr
Redington Earnings Call Transcript: Key Takeaways
Redington delivered record Q1 results with 34% revenue growth, though profits outpaced sales via significant operating leverage. Management remains cautious on West Asia geopolitical risks despite strong India momentum.
Redington Q1 FY27 Results: Net Profit ₹453.5 Cr, Up 94.6% YoY
Redington Ltd reported revenue from operations of ₹34,922 Cr (+34.6% YoY) and net profit of ₹453.5 Cr (+94.6% YoY) for Q1 FY27.
- Key figure
- Net profit ₹453.5 Cr · +94.6% YoY
Redington Earnings Call Transcript: Key Takeaways
Redington is pivoting from a hardware-centric transactional distributor to a high-margin software and services orchestrator. Management targets doubling the Software Services Group (SSG) revenue over the next three years.
- Call
- Guides 100% growth
Redington Earnings Call: Key Takeaways
Transcript of Virtual Investors Event for Software Solutions Group (SSG), detailing transformation from transactional distribution to high-margin platform-driven orchestration.
- Call
- Guides 127% growth