Redington Reports Strong Q2 FY26 Results; Revenue up 17% to ₹29,118 Cr, PAT at ₹388 Cr; Divests Arena Connect
Redington reported strong Q2 FY26 results: ₹29,118 crore revenue, ₹388 crore PAT. Strategic divestment of Arena's Vodafone contract aims to reduce interest costs and enhance profitability. Growth seen across all business segments.
The announcement details robust Q2 FY26 financial results, including substantial revenue and profit increases. The strategic divestment in Arena and the positive outlook for key geographies and business units, especially the high-growth SSG, indicate a high impact on the company's future performance and investor perception.
The company reported strong financial performance with significant revenue and profit growth, effective working capital management, and strategic divestment of the loss-making Arena Connect Vodafone contract, all pointing to a positive outlook.
* Redington Limited announced the release of the earnings conference call transcript for the audited financial results for the quarter and half year ended September 30, 2025, which was held on November 06, 2025. * For Q2 FY26, Redington recorded nearly ₹29,118 crore in revenue, marking a 17% growth. * The quarterly profit (PAT) was ₹388 crore, making it the best Q2 ever for profitability. * Overall group PAT stood at 1.33%, and 1.57% excluding the Arena subsidiary. * EBITDA and PAT grew faster than revenues, indicating profitable growth across all business segments and geographies. * Geographic growth contributors include India (23%), UAE (23%), Saudi Arabia (10%), GCCL (22%), and Africa (8%). * Business unit performance: * Mobility grew by 18%, contributing 35% to the top line, driven by premium segment demand, new product introductions (NPIs), and strong direct-to-retail execution in India. * ESG (PCs) grew by 11%, contributing 32% to the top line, with signs of a PC refresh cycle and increased AI PC penetration in the commercial space, particularly in India. * Technology Solutions grew by 9%, contributing 16% to the top line, due to higher enterprise demand. * The newly formed Software Solutions Group (SSG), comprising cloud hyperscaler, cybersecurity, application software, and professional services, grew by 48% and contributed 16% to the top line. This group also delivered higher-than-average PAT. * Redington is investing in its digital platform CloudQuarks, technical presales teams, and the Redington Academy to build capabilities and ecosystems. * Working capital days were efficiently managed, reducing to 31 days, while opex grew slower than revenue at 9% year-on-year. * The Arena subsidiary reported a loss of ₹37 crore (Redington's share) for the quarter. * Arena has decided to divest its Connect Vodafone contract to reduce interest costs and minimize local currency exposure, which resulted in a one-off impact of approximately $3.4 million in the current quarter. The core business loss in Arena reduced to $2.6 million from $3.6 million in the previous quarter. * The Connect Vodafone sale is expected to bring benefits from Q4 FY26, with full impact from the next financial year. This divestment will reduce revenue by approximately $300 million and debt by $50-55 million. * The company was awarded as the #1 IT distributor in India by VAR India for FY25, for the third consecutive year. * Management expressed a positive and promising outlook for India, UAE, and KSA, with continued investments in the SSG business. * The Board will discuss flexibility in the 40% dividend payout policy to ensure growth opportunities are not missed due to capital allocation. * Redington is exploring small inorganic opportunities within the Software Solutions Group, particularly in cybersecurity and cloud, to build new capabilities.
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