Redington (REDINGTON) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered record consolidated revenue of ₹30,959 crore, up 16% year-over-year, and PAT of ₹436 crore, up 9% year-over-year, with PAT margin at 1.41% for the group and 1.56% excluding Arena.

• SISA revenue grew 24% year-over-year, while ROW (Rest of World) excl. Arena saw revenue up 18% and PAT up 30%.

• 9MFY26 global revenue rose 18% year-over-year, with PAT up 17%.

• All major business units contributed, with strong performance in mobility, endpoint solutions, and software solutions.

• Total comprehensive income for Q3 FY2026 was ₹455.06 crore.

Financial highlights

• Mobility segment grew 15% year-over-year, contributing 35% of revenue, driven by premium demand and direct-to-retail execution.

• Endpoint Solutions Group (PCs) grew 21% year-over-year, contributing 32% of revenue, with 28% of India commercial PC revenue from AI-focused PCs.

• Software Solutions Group (SSG) grew 40% year-over-year, now 18% of revenue, with double-digit growth across all sub-segments and above-average PAT.

• Q3FY26 EBITDA was ₹663 crore (+2% YoY); free cash flow for Q3FY26 was ₹217 crore.

• Working capital days reduced to 28, with net debt down by ₹1,000 crore year-over-year.

Outlook and guidance

• SSG expected to maintain 40%+ growth across all markets.

• Management focuses on operational efficiency, digital platforms, and expansion in growth geographies.

• TSG to focus on data center deals, with high single-digit growth expected.

• Arena's losses expected to reduce further, with break-even targeted for next year.

• Company will continue to monitor regulatory changes for future financial impact.