Redington shares gain 4% after Q1 profit jumps 77% YoY, revenue growth remains robust

Redington shares rose nearly 4% during Friday’s session to an intraday high of Rs 322, extending gains after the technology solutions provider reported a 77% year-on-year (YoY) jump in net profit for the June quarter, driven by record revenue and strong growth across key business segments.

The stock had surged nearly 15% during Thursday’s session following the earnings announcement and touched a fresh 52-week high of Rs 338.50.

The company reported a Q1FY27 net profit of Rs 486 crore, compared to Rs 275 crore in the corresponding quarter of the previous year. Excluding exceptional items, profit after tax (PAT) grew more than twice as fast as revenue, highlighting strong operating leverage. The company’s PAT margin stood at 1.4% during the quarter.

Revenue from operations rose 34.6% YoY to Rs 34,922 crore, compared with Rs 25,952 crore in the year-ago period, marking the company’s highest-ever quarterly revenue.

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The strong performance was led by the India business, where revenue surged 63% YoY, while PAT climbed 60%. Growth was driven by the execution of large enterprise deals, higher PC realisations amid industry-wide memory supply constraints, continued premiumisation in smartphones, and sustained demand for cloud and cybersecurity solutions.
Meanwhile, revenue from the Middle East and Africa business grew 15% YoY, supported by cloud and cybersecurity offerings despite geopolitical uncertainties during the quarter.

Business Segment Performance

The company reported strong momentum across its technology portfolio during the quarter.
Software Solutions Group grew 52% YoY, supported by increased adoption of cloud, cybersecurity, software-led engagements, AI-enabled solutions and subscription-based models. Endpoint Solutions Group grew 35% YoY, driven by higher PC realisations amid memory supply constraints and steady demand.

Mobility Solutions Group grew 21% YoY, led by premium smartphone demand and expansion of retail-led distribution. Technology Solutions Group grew 50% YoY, supported by large enterprise and data centre deals.

Also Read |Redington shares rally 15% after Q1 profit surges 77%; revenue rises 35% YoY

“We have started FY27 on a strong note, delivering our highest-ever quarterly revenue and profit. This performance reflects the strength of our diversified business model, disciplined execution and broad-based momentum across businesses and geographies. Profit growth significantly outpaced revenue growth, reinforcing our continued focus on profitable and sustainable growth,” said V. S. Hariharan, Managing Director & Group CEO, Redington.

“As technology adoption accelerates across cloud, software, cybersecurity, AI-enabled infrastructure and digital transformation, Redington is well positioned to capture these opportunities through its strong ecosystem of global technology brands, partners and customers. We will remain focused on operational resilience, capital efficiency and long-term value creation for all our stakeholders,” Hariharan further said.

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