Redington shares hit 52-week high after 77% profit jump on record revenue
Indian technology distributor Redington posted its highest-ever quarterly revenue and a 77 per cent jump in first-quarter profit, demonstrating strong operating leverage as enterprise demand for cloud and AI infrastructure accelerates.
Shares in Redington gained 4 per cent following a volatile trading session where the stock surged nearly 15 per cent. The rally pushed the technology distributor to a fresh 52-week high of Rs 338.50 after it announced a 77 per cent jump in first-quarter net profit.
Redington posted a net profit of Rs 486 crore for the three-month period, a significant increase from the Rs 275 crore recorded a year earlier. Revenue from operations climbed 34.6 per cent to a record Rs 34,922 crore, marking the highest quarterly top line in the company's history.
Crucially for investors, profit after tax expanded at more than twice the rate of revenue growth. This highlights strong operating leverage within the business, with the net profit margin standing at 1.4 per cent for the quarter.
Segment growth drivers
The robust financial performance was underpinned by broad-based momentum across the company's technology portfolio. The Software Solutions Group expanded 52 per cent year-on-year, driven by corporate adoption of cloud computing, cybersecurity and AI-enabled subscription models.
Hardware-focused divisions also delivered strong results amid shifting supply dynamics. The Endpoint Solutions Group grew 35 per cent as higher PC realisations offset memory supply constraints, while the Mobility Solutions Group rose 21 per cent on steady demand for premium smartphones.
Meanwhile, the Technology Solutions Group posted a 50 per cent increase in revenue. This segment benefited heavily from large-scale enterprise contracts and growing corporate investments in data centre infrastructure.
Management attributed the results to disciplined execution across diverse geographies and business lines. “We have started FY27 on a strong note, delivering our highest-ever quarterly revenue and profit,” said V. S. Hariharan, Managing Director and Group CEO of Redington.
Hariharan noted that profit growth significantly outpaced revenue growth, reinforcing the company's focus on sustainable expansion. “As technology adoption accelerates across cloud, software, cybersecurity, AI-enabled infrastructure and digital transformation, Redington is well positioned to capture these opportunities,” he added.
The executive emphasised that the distributor will maintain its focus on operational resilience and capital efficiency. This strategy aims to secure long-term value creation for stakeholders as global technology brands continue to scale their partner ecosystems.
Response 2
Analyzing the growth dynamics across business segments within the company's diversified portfolio.
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