Q1 2026 Redington Ltd Earnings Call Transcript
Key Points
- Redington Ltd (BOM:532805) reported a 22% year-on-year revenue growth and a 12% increase in profits, excluding its subsidiary Arena in Turkey.
- The company experienced strong geographical revenue growth, with India at 24%, UAE at 35%, and Saudi Arabia at 32%.
- The Mobility Solutions group led with a 44% growth, driven by demand in the premium segment across India and the Middle East.
- Cloud Solutions continued its momentum with a 41% top-line growth, benefiting from the cloud transition and digital transformation.
- Efficient management of working capital resulted in a reduction of closing working capital days to 37, two days lower than the previous year.
- Arena, the subsidiary in Turkey, faced challenges due to market conditions, leading to provisions that impacted overall performance.
- Gross margins were below expectations due to a mix shift towards mobility and market pressures in the Technology Solutions Group (TSG).
- The company experienced a 60 basis point drop in gross margins, attributed to large deals with lower margins and increased competition.
- Interest costs, particularly in Turkey, remained high due to increased working capital requirements and high TRY loan rates.
- The company is facing geopolitical tensions in India and the Middle East, which could impact future operations.
Ladies and gentlemen, good day and welcome to the Reddington Limited Q1 and FY26 earnings conference calls. (Operator Instructions)
This conference may contain certain forward-looking statements about the company which are based on the beliefs, opinions, and the expectations of the company as on the date of this call. These statements are not the guarantees of the future performance and involve risk and uncertainties that are difficult to predict.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. B Hariharan, Managing Director and Group CEO. Thank you and over to you, sir.
Thank you. Good afternoon, everyone. This is, Hariharan. I'm pleased to share with all of you our Q1 '26 results. This has been our best Q1 so far from a top line perspective. It's strong growth in both top and bottom line compared to the pre, the quarter one of '25.
Our revenues for
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