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Earnings Call Transcript

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.

Highlights
Revenue growth34% YoY growth to ₹34,966 Cr, driven by India market.
MarginsGross margin compression in Turkey; offset by India services growth.
Order bookIndia data center deal funnel exceeds ₹1,000 Cr.
Demand visibilityStrong for Cloud and Data Centers; softening in consumer PCs.
Management confidenceConfident on India; cautious but resilient regarding West Asia instability.

Growth

Revenue grew 34% YoY to ₹34,966 Cr; PAT surged 77% showing high operating efficiency.

Outlook

₹1,000 Cr large-deal pipeline in India data center category for the year.

Risks

West Asia crisis continues to depress UAE/Saudi volumes and inflate logistics costs.

Last quarter's promises, checked

Delivered

  • Clean up dollar business/exit Arena mobility → Business exited, Turkey debt cut $130M to $90M (= BEAT)
  • Drive Software/SSG momentum → 53% growth to 17% revenue share (= BEAT)
  • Improve working capital → 37 days in Q1'26 to 32 days in Q1'27 (= BEAT)

Partly delivered

  • Manage geopolitical logistics costs → $3M cost increase partially recovered from customers (= PARTIAL)

Missed

  • West Asia volume stability → UAE/Saudi flat to small degrowth (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: REDINGTON. Summary written with AI assistance from the document.

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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.

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Value
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Financial Results

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