Redington Ltd delivered its highest-ever quarterly financial performance in Q2 FY27, with revenue surging 48% YoY to ₹43,002 crore. Despite an impairment charge in its Turkish unit, adjusted PAT grew by 50% to ₹581 crore, driven by stellar growth in the India and South Asia markets.
Redington Reports Record-Breaking Q2 FY27 Results
Revenue grew by 48% to ₹43,002 crore; Adjusted PAT jumped 50% to ₹581 crore.
Reader Takeaway: Exceptional growth in Indian operations fuels historic results, offsetting international impairment charges in the Turkey market.
What just happened
Redington Ltd has announced its strongest quarterly financial performance to date for Q2 FY27. The company reported a global consolidated revenue of ₹43,002 crore, representing a 48% increase from the year-ago quarter. While the company recorded a one-time impairment charge of ₹80.3 crore related to its Turkish subsidiary, Arena, the core operational profit remained robust. Adjusted for this item, the company's Profit After Tax (PAT) reached ₹581 crore, marking a 50% increase year-on-year.
Why this matters
The record results underscore the scalability of Redington’s distribution model, particularly in the Singapore, India, and South Asia (SISA) regions. The India distribution business was a standout performer, reporting revenue growth of 67% and a massive 77% surge in PAT. This indicates that despite broader global economic headwinds, the domestic market for IT and technology distribution remains a high-growth engine for the firm.
The backstory
Redington has been navigating challenging economic conditions in Turkey through its subsidiary, Arena Bilgisayar. The management conducted an impairment exercise on intangible assets in Turkey, resulting in a ₹39.7 crore impact on Redington’s share of consolidated earnings. By highlighting adjusted figures, the company aims to emphasize that its core underlying business growth remains resilient despite these geographical pressures.
Risks to watch
Investors should monitor the rise in global working capital days, which ticked up by 4 days to 35 days this quarter. Additionally, the recurring geo-political and macro-economic challenges impacting the Rest of the World (ROW) segment, specifically the Turkish business, continue to represent potential volatility in the company’s international operations.
Context metrics
- Debt-to-Equity Ratio: 0.55x
- Return on Capital Employed (ROCE): 22.7%
- Return on Equity (ROE): 21.6%
What to track next
The market will look for sustained momentum in the SISA segment and evidence of working capital optimization to ensure cash flow efficiency remains steady alongside the company's rapid expansion.