Redington Limited achieved its highest-ever quarterly financial results in Q3FY26, supported by 24% revenue growth in the SISA region. The firm significantly reduced its working capital cycle while managing the impact of one-time impairment costs in its logistics subsidiary.
Redington Limited (NSE: REDINGTON) delivered record financial results for the third quarter of fiscal year 2026, marking its highest-ever quarterly revenue and profit after tax (PAT). Global revenue increased 16% year-on-year to reach ₹30,959 crore, while PAT rose 9% to ₹436 crore. These results were underpinned by strong momentum in South Asian markets and a significant reduction in global working capital requirements.
Software Solutions Group Lead Quarterly Performance
The quarter was characterized by the Software Solutions Group (SSG) emerging as a primary global growth driver, posting 40% year-on-year revenue expansion. Additionally, the company improved its operational liquidity, reducing global working capital days from 33 days in the prior year to 28 days. This efficiency was achieved despite a one-time impairment cost at ProConnect Global, which led to a 15% decline in that subsidiary’s quarterly profit after tax.
Strong Revenue Growth and Improved Cash Flow
Total global revenue, including the Arena business, rose to ₹30,959 crore from ₹26,764 crore in the year-ago period. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached ₹663 crore, a 2% year-on-year increase. In the SISA region (Singapore, India, and South Asia), revenue grew 24% to ₹16,600 crore, while the Rest of the World (ROW) business saw a 7% revenue increase to ₹12,803 crore. Return on capital employed (ROCE) for the quarter was 22.1%, and return on equity (ROE) stood at 18.8%. Free cash flow for the quarter turned positive at ₹217 crore, compared to a negative ₹2,046 crore in Q3FY25.
Business Outlook and strategy
Management’s strategy continues to prioritize high-growth segments such as cloud, professional services, and enterprise security under the Software Solutions Group. For the nine-month period ending December 2025, SSG revenue grew 40% year-on-year. The company maintains a conservative capital structure, reported a net debt-to-equity ratio of 0.08x. Revenue remains concentrated among top technology vendors, with Apple contributing 33% of quarterly revenue, followed by HP Inc. at 10% and Samsung at 8%.
Market Dynamics and Financial Performance
Redington operates within a technology distribution environment sensitive to government regulatory trends, currency fluctuations, and interest rate volatility. Within its specific business verticals, global performance was mixed; while the Mobility Solutions Group (MSG) revenue rose 15%, the Technology Solutions Group (TSG) experienced a 7% decline during the quarter. The divestment of the fintech entity Paynet in February 2025 resulted in a 74% decline in the “Other Services” revenue category. Regionally, the SISA market increased its contribution to total revenue to 54%, while the ROW region accounted for 46%.
