Financial Performance Overview
Redington Limited reported strong financial results for FY2025-26 with consolidated revenue reaching ₹1,19,347 crores, representing 20% year-over-year growth. Profit after tax (excluding exceptional items) grew 17% to ₹1,565.46 crores. The company maintained robust operational metrics with working capital days improving to 34 days and operating cash flow turning positive at ₹231.4 crores despite significant revenue growth.
Segment Performance and Operational Highlights
The Software Solutions Group emerged as the fastest-growing segment with 37% growth and 74% recurring revenue. Geographically, the SISA region (Singapore, India & South Asia) contributed ₹64,980.51 crores in revenue, while the ROW (Rest of World) region generated ₹54,286.98 crores. The company maintained its AA+ credit rating from CRISIL and ICRA, with net gearing at 15% and ROCE of 20%.
Corporate Actions and Dividend
The Board recommended a final dividend of ₹6 per equity share (300% of face value) with a record date of July 3, 2026. The 33rd Annual General Meeting is scheduled for July 29, 2026, to be conducted through video conference. E-voting will be available from July 25 to July 28, 2026.
Exceptional Items and Subsidiary Performance
The company recognized an exceptional impairment loss of ₹152.31 crores related to its Turkish subsidiary, Arena Bilgisayar, due to challenging economic conditions. Subsidiary performance varied with ProConnect Supply Chain Solutions reporting 17.5% revenue growth to ₹682.08 crores and Redserv Global Solutions achieving PAT of ₹7.30 crores on revenue of ₹81.82 crores.
Regulatory Compliance and ESG Initiatives
Redington received a reasonable assurance opinion from BSI on its BRSR Core KPIs, covering environmental and social metrics including GHG emissions, water footprint, and gender diversity. The company spent ₹21.65 crores on CSR initiatives and demonstrated strong ESG performance with 25% women representation in workforce and board, and commitment to Net Zero 2050 target.
Tax Disputes and Contingent Liabilities
The company disclosed significant tax disputes including direct tax disputed demands of ₹364.87 crores and indirect tax disputes of ₹151.49 crores. A major permanent establishment tax case involving ₹427.21 crores was partially resolved through MAP, resulting in 25% profit attribution on certain revenues with penalty waivers.
Governance and Management Structure
The board composition maintained 25% women representation and 38% independence with 6 meetings held during the year. Key management personnel including V.S. Hariharan (MD & Group CEO) and S.V. Krishnan (Finance Director) received total remuneration of ₹23.26 crores. The company maintained full compliance with SEBI LODR Regulations and other regulatory requirements.
Subsequent Events and Outlook
The Board has recommended the final dividend pending shareholder approval at the AGM. The company continues to maintain its market leadership position as #1 in India and MEA markets and among the top 10 global distributors with operations spanning 40+ countries and 70,000+ channel partners.