Redington Limited – Investor Presentation Summary

Key Operational Highlights

  • Global (including Arena) YoY Revenue grew by 34%, EBITDA grew by 67%, and PAT grew by 77% in Q1FY27.
  • Global (excluding Arena) YoY Revenue grew by 41%, EBITDA grew by 54%, and PAT grew by 64% in Q1FY27.
  • SISA (Singapore, India & South Asia) region YoY Revenue grew by 63%, EBITDA grew by 50%, and PAT grew by 56%.
  • ROW (Rest of the World including Arena) Revenue grew by 6%, EBITDA grew by 121%, and PAT grew by 143%.
  • ROW (Rest of the World excluding Arena) Revenue grew by 16%, EBITDA grew by 64%, and PAT grew by 81%.
  • Working Capital days were 32 days, reduced by 5 days on a YoY basis.
  • SSG (Software Solutions Group) grew by 53%, TSG (Technology Solutions Group) grew by 49%, and ESG (End Point Solutions Group) grew by 35% on a YoY basis.
  • Key drivers: Exceptional growth in India, strong performance across all business units, and efficient working capital management.

Segment-wise Performance

SISA BUSINESS:

  • YoY Revenue grew by 63%, EBITDA grew by 50%, and PAT grew by 56%.
  • ROCE was at 28.3% and ROE at 26.6%.
  • WC days stood at 31 days, reduced by 5 days on a YoY basis.
  • YoY Strong growth across all BUs: MSG (Mobility Solutions Group) grew by 88%, TSG grew by 57%, ESG grew by 49%, and SSG grew by 42%.
  • India Distribution: YoY Revenue grew by 63%, EBITDA grew by 54%, and PAT grew by 60%.

ROW BUSINESS Incl. Arena:

  • Revenue grew by 6%, EBITDA grew by 121%, and PAT grew by 143%.
  • WC days stood at 32 days, decreased by 8 days on a YoY basis.
  • YoY Strong growth in SSG by 63% and in TSG by 36%.

ROW BUSINESS Excl. Arena:

  • Revenue grew by 16%, EBITDA grew by 64%, and PAT grew by 81%.
  • YoY Strong growth in SSG by 64%, TSG by 34%, and ESG by 31%.

PROCONNECT GLOBAL:

  • Q1FY27 YoY Revenue grew at 38%, EBITDA grew at 15%, and PAT grew at 24%.
  • Q1FY27 EBITDA margin at 9% and PAT margin at 3%.
  • Captive business was at 28% for the quarter.

Financial Highlights

Revenue: ₹34,966 Cr (Q1FY27) vs. ₹26,002 Cr (Q1FY26)

EBITDA: ₹751 Cr (Q1FY27) vs. ₹450 Cr (Q1FY26)

PAT: Not specified as a single consolidated figure, but growth rates are provided for segments.

EPS: Not specified for Q1FY27.

Margins: Global EBITDA and PAT margins not specified as a single figure; ProConnect had a 9% EBITDA margin and 3% PAT margin.

YoY/QoQ comparison: Provided as YoY growth percentages.

Drivers of financial performance: Higher revenue growth across segments, operational efficiencies reflected in reduced working capital days, and strong performance in the SISA region.

Key Risks: General market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties, legislative developments (from disclaimer).

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

Performance is split into SISA (Singapore, India & South Asia) and ROW (Rest of the World) regions.

  • SISA: Revenue grew 63% YoY (specific value not provided).
  • ROW incl. Arena: Revenue grew 6% YoY.
  • ROW excl. Arena: Revenue grew 16% YoY.

A precise domestic vs. export split in value terms is not provided.

Balance Sheet Snapshot

Net Debt/Equity: 0.39x (Q1FY27) vs. 0.36x (Q1FY26)

Reserves: Not specified for Q1FY27.

Current Assets/Liabilities: Not specified.

Working Capital/Leverage Metrics: Working Capital days were 32, reduced by 5 days YoY. Debt-to-Equity was 0.39x.

Financial Health Insights: Strong profitability growth, improved working capital efficiency, and healthy ROCE/ROE.

Capex & Cash Flow Health

Capital Expenditure: ₹36 Cr (Q1FY27) vs. ₹31 Cr (Q1FY26) and ₹48 Cr (Q4FY26)

Free Cash Flow: ₹(995) Cr (Q1FY27) vs. ₹(940) Cr (Q1FY26) and ₹(999) Cr (Q4FY26)

Operating Cash Flow: ₹(885) Cr (Q1FY27) vs. ₹(863) Cr (Q1FY26) and ₹(883) Cr (Q4FY26)

Net Debt Movement: Not specified.

Investment Rationale: Not explicitly stated for future capex, but historical focus on building efficient tech platforms and adapting to evolving business models.

Strategic & R&D Initiatives

Investments in Innovation: Focus on key technology trends including Sustainability Tech, Software, Cyber Security, Artificial Intelligence, and Hybrid Cloud. Building AI Experience Centers and specialized teams.

Expected impact on growth: Ambition to grow the software segment to 20% of Redington's business. Re-aligning organization and operations model for software-led business growth.

Strategic Rationale: Expanding into high-growth and high-margin areas like software, cloud, security, and AI services. Leveraging technology to embrace recurring revenue models and ecosystem orchestration.

Industry Trends & Business Environment

Macro/Industry Trends: Cited global IT spend growth of 10.8% ($6 Tn) in 2026, with India at 10.6% ($176 Bn) and MEA at 8.9% ($253 Bn). Key growth areas include Sustainability Tech, Software, Cyber Security, AI, and Hybrid Cloud.

Impact on Company: Redington is aligning its portfolio and strategy to capitalize on these growth trends, forging alliances with technology providers and building specialized capabilities.

Management Commentary & Growth Outlook

Strategic Outlook: The company's strategy is based on three pillars: 1) Sustainable Profitable Core, 2) Accelerate Business Growth (faster adoption of subscription/consumption business), and 3) Route to market Transformation.

FY Guidance: Not provided for FY27.

Market Share Targets: Not specified.

Risks and Opportunities: General risks are noted in the disclaimer, including market, macroeconomic, regulatory, currency, and competitive factors.

ESG & CSR Updates

  • 100 MW Solar Capacity created in India.
  • 30 MT E-waste successfully diverted from landfills.
  • 3% Renewable energy mix.
  • 25% Women representation on Board; 25.08% in workforce.
  • 38% Independent Directors on the Board.
  • 100% Oversight of ESG risks through ESG Committee.
  • ISO 27001:2022 certification for Redington, ProConnect, and Redington Gulf FZE.
  • ISO 27701 certification for Redington India.
  • LEED Platinum certification for the Corporate Office and LEED Gold for the Gurgaon facility.
  • ISO 45001 and ISO 14001 certifications for ProConnect.
  • 81% Global Employee Engagement Score.
  • Ranked 61st among 200 Most Sustainable Companies.
  • CSR focus areas: Skill to Employ, Educate to Empower, and Community Development.