Q3 2026 Redington Ltd Earnings Call Transcript
Key Points
- Redington Ltd (BOM:532805) reported a strong revenue growth of 16% and a profit after tax growth of 9% for Q3 FY26.
- The company's geographical revenue growth was robust, with India growing at 25%, UAE at 19%, GCCL at 29%, and Africa at 14%.
- The Software Solutions Group (SSG) showed impressive growth of 40%, contributing to 18% of the top line, driven by cloud, software, and cybersecurity businesses.
- Efficient management of working capital reduced working capital days to 28, and operating expenses were well-controlled at 9%, slower than revenue growth.
- The company is investing in AI capabilities, creating a capability center in Chennai and an AI go-to-market team in India and the Middle East.
- The Technology Solutions Group (TSG) experienced a decline of 7%, attributed to the timing of large deals and market conditions.
- Arena, a subsidiary, continues to face economic challenges, with a reported loss and high interest costs due to local currency exposure.
- Gross margins were slightly down, with a 47 basis points decline year-on-year, primarily due to Arena's performance and market competition in TSG.
- There was a goodwill impairment charge of INR9.2 crore in the quarter, impacting profitability.
- The chip shortage and rising prices are causing uncertainty in demand, potentially affecting future sales and margins.
Ladies and gentlemen, good day and welcome to Redington Limited's Q3 FY26 earnings conference call.
This conference may contain forward-looking statements about the company, which are based on the beliefs, opinion, and expectations of the company, as on the date of this call. These statements are not guarantees of future performance; and involves risk and uncertainties that are difficult to [project].
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. VS Hariharan, Managing Director and Group CEO. Thank you. Over to you, sir.
Thank you. A very good morning, everyone. It's a pleasure to be here. I'm delighted to share with you our results for Q3 '26.
This has been our results, so far, both from a revenue perspective and a profit perspective. We recorded nearly INR31,000 crore to exercise [INR30,959]; and a quarterly profit of INR436 crore.
Our revenues grew at 16%. Profit
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
