Redington Limited – Investor Presentation Summary

Key Operational Highlights

  • Global revenue excluding Arena grew by 54% YoY in Q2FY27
  • Working Capital days stood at 35 days, increased by 4 days YoY
  • Technology Solutions Group (TSG) grew by 91% YoY, Mobility Solutions Group (MSG) grew by 40% YoY, Software Solutions Group (SSG) grew by 39% YoY, and End Point Solutions Group (ESG) grew by 38% YoY
  • SISA region (Singapore, India & South Asia) demonstrated exceptional performance with 66% revenue growth and 66% PAT growth
  • India Distribution specifically showed YoY Revenue growth of 67%, EBITDA growth of 74% and PAT growth of 77%

Segment-wise Performance

Q2FY27 Vertical Performance (₹ in Crores):

| Vertical | SISA Q2FY26 | SISA Q2FY27 | SISA YoY | ROW Q2FY26 | ROW Q2FY27 | ROW YoY | Global Q2FY26 | Global Q2FY27 | Global YoY |

| ESG | 4,892 | 6,945 | 42% | 4,502 | 6,056 | 34% | 9,394 | 13,000 | 38% |

| TSG | 3,041 | 6,553 | 115% | 1,507 | 2,139 | 42% | 4,548 | 8,691 | 91% |

| SSG | 2,126 | 2,906 | 37% | 2,478 | 3,504 | 41% | 4,603 | 6,409 | 39% |

| MSG | 5,283 | 8,998 | 70% | 5,019 | 5,462 | 9% | 10,302 | 14,461 | 40% |

| Renewable energy | 15 | 104 | 578% | 2 | 6 | 240% | 17 | 111 | 541% |

| Logistics | 170 | 211 | 25% | 103 | 161 | 57% | 272 | 372 | 37% |

| Other Services | 21 | 22 | 2% | 51 | 56 | 11% | 72 | 78 | 8% |

Financial Highlights

Q2FY27 Performance:

  • Revenue: ₹43,002 Crores (48% YoY growth)
  • EBITDA: ₹894 Crores (41% YoY growth)
  • PAT: ₹581 Crores (50% YoY growth, excluding exceptional impairment)
  • Reported PAT including exceptional impairment: ₹541 Crores
  • EBITDA Margin: Not explicitly specified
  • PAT Margin: Not explicitly specified

H1FY27 Performance:

  • Revenue growth: 41% YoY (Global including Arena)
  • EBITDA growth: 52% YoY (Global including Arena)
  • PAT growth: 61% YoY (Global including Arena)

Key Metrics:

  • Debt to Equity: 0.55x
  • ROCE: 22.7%
  • ROE: 21.6%

Geographical Revenue Split

SISA Region (Singapore, India & South Asia):

  • Q2FY27 Revenue growth: 66% YoY
  • Q2FY27 PAT growth: 66% YoY
  • ROCE: 28.8%
  • ROE: 29.5%
  • WC days: 31 days (increased by 5 days YoY)

ROW Region (Rest of World) Including Arena:

  • Q2FY27 Revenue growth: 27% YoY
  • Q2FY27 EBITDA growth: 9% YoY
  • Q2FY27 PAT growth: 25% YoY
  • WC days: 39 days (increased by 5 days YoY)

ROW Region Excluding Arena:

  • Q2FY27 Revenue growth: 38% YoY
  • Q2FY27 EBITDA growth: 49% YoY
  • Q2FY27 PAT growth: 41% YoY

Balance Sheet Snapshot

  • Debt to Equity: 0.55x (increased from 0.26x in Q2FY26)
  • Working Capital days: 35 days (increased by 4 days YoY)

Capex & Cash Flow Health

Q2FY27 Free Cash Flow (₹ in Crores):

  • Profit Before Taxation: ₹624
  • Non-cash items: ₹361
  • Finance Cost: ₹128
  • Changes in Working Capital: -₹2,568
  • Direct Tax Paid: -₹231
  • Net Cash Flow from Operations: -₹1,686
  • Capex: -₹72
  • Outflow of Finance Cost: -₹113
  • Free Cash Flow: -₹1,871

H1FY27 Free Cash Flow (₹ in Crores):

  • Net Cash Flow from Operations: ₹737
  • Capex: -₹33
  • Outflow of Finance Cost: -₹121
  • Free Cash Flow: ₹583

Strategic & R&D Initiatives

  • Launched first AI COE in Singapore
  • Expanding sustainable tech solutions portfolio
  • Building AI Experience Centers and specialized teams
  • Investing in outcome-based customer approach for hybrid cloud utilization
  • Implementing reverse logistics for efficient product return and recycling
  • Promoting reuse and refurbishment to minimize environmental footprint

Industry Trends & Business Environment

  • Global IT spend growth projected at 10.8% reaching $6 Tn in 2026
  • India IT spend growth projected at 10.6% reaching $176 Bn in 2026
  • MEA IT spend growth projected at 8.9% reaching $253 Bn in 2026
  • Key technology trends: Sustainability Tech (India 21%, MEA 19%), Software (India 18%, MEA 13%), Cyber Security (India 12%, MEA 10%), Artificial Intelligence (India 27%, MEA 28%), Hybrid Cloud (India 28%, MEA 19%)

Management Commentary & Growth Outlook

  • Achieved highest ever revenue and PAT in any quarter
  • PAT growth faster than revenue growth
  • ROW demonstrated good performance despite ongoing geo-political challenges
  • ProConnect achieved all-time high quarterly revenues
  • Company is focusing on life-cycle management and expanding service offerings for long-term customer success
  • Leveraging technology to embrace recurring revenue models

Key Risks

  • Challenging economic conditions in Turkey leading to impairment of investment in Arena Bilgisayar
  • Geo-political challenges affecting ROW operations
  • Working capital pressure with WC days increasing by 4-5 days across regions
  • Currency exchange rate fluctuations affecting international operations

Arena Performance and Impairment

  • Arena business revenue decreased by 37% YoY in Q2FY27 due to exit from Turkish Lira denominated businesses
  • Impairment of intangibles of ₹80.3 Crores recognized (₹39.7 Cr is Redington Share of Loss)
  • Overall value of intangible was $25.6 Mn, with $17.2 Mn impaired during Q4FY26 and remaining $8.4 Mn impaired during current quarter
  • Impairment disclosed as exceptional item in financial results