Q4 2026 Redington Ltd Earnings Call Transcript
Key Points
- Redington Ltd (BOM:532805) reported its best quarter with a 25% year-on-year revenue growth, reaching INR33,269 crore.
- The company achieved a quarterly profit of INR467 crore, marking its best profit performance to date.
- India's market showed exceptional growth with a 50% increase in top-line revenue and a 41% rise in profit after tax.
- The Software Solutions Group (SSG) grew by 31%, contributing to 17% of the top line, indicating strong momentum and higher quality earnings.
- Efficient management of working capital and a higher mix towards mobility solutions reduced working capital days to 30 days, with a return on capital employed (ROCE) at 22%.
- Geopolitical tensions in the Middle East negatively impacted performance in March, affecting revenue and operations.
- The company's subsidiary, Arena, reported a loss of INR44 crore due to exit costs, with Redington's portion being INR22 crore.
- An impairment loss of INR75.2 crore was recognized due to challenging economic conditions in Turkey, impacting group PAT.
- Operational expenses increased due to war-related premiums on insurance and freight, as well as one-off AR provisions.
- The dividend declared was INR6 per share, which is lower than expected, as the company conserves cash for growth opportunities and geopolitical uncertainties.
Ladies and gentlemen, good day, and welcome to Redington Limited Q4 FY26 Earnings Conference Call.
(Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. VS Hariharan, MD and Group CEO. Thank you, and over to you, sir.
Thank you. A very good morning, everyone. I am pleased to share with you our results for Q4 '26 and full year FY26. This has been our best quarter so far from both revenue and profit perspective. We recorded INR33,269 crore of revenue, a growth of 25% year on year.
Quarterly profit at consol level, excluding exceptional items, was INR467 crore at 1.4%, our best profit performance so far. We closed the year at INR119,347 crore, nearly $13.5 billion, marking a Y-o-Y growth of 20% on revenue, a full year PAT growth excluding exceptional items, was 17% and PAT margin at 1.3%.
This has been a strong year for Redington, reflecting sustained momentum
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