Redington Q2 FY27 results: net profit up 20.6% to ₹422.51 crore, revenue up 47.7%

How did Redington perform in Q2 FY27?

Redington reported consolidated revenue of ₹42,947 crore for Q2 FY27, up ₹13,871 crore or 47.7% from ₹29,076 crore in Q2 FY26 and ₹8,024 crore or 23.0% from ₹34,922 crore in Q1 FY27. Total income was ₹43,001.55 crore. EBITDA rose ₹250.10 crore or 42.5% year on year to ₹838.99 crore and increased ₹131.24 crore or 18.5% from the previous quarter, while the EBITDA margin remained at 2.0%.

Profit before tax was ₹623.81 crore, up 35.7% from ₹459.76 crore a year earlier and 2.1% from ₹610.87 crore in Q1 FY27. Net profit was ₹422.51 crore, compared with ₹350.20 crore in Q2 FY26 and ₹453.49 crore in Q1 FY27. Profit attributable to shareholders was ₹541.32 crore, up 39.6% year on year and 11.4% sequentially, while basic EPS was ₹6.92 against ₹4.96 and ₹6.22, respectively.

On the standalone basis, revenue from operations was ₹25,224.83 crore and profit for the quarter was ₹838.64 crore, compared with profit before tax of ₹531.78 crore in the year-ago quarter. The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, along with the limited review reports of Deloitte Haskins & Sells Chartered Accountants LLP.

What changed in Redington's costs and profit?

Total expenses increased ₹13,639 crore or 47.6% from ₹28,658.61 crore in Q2 FY26 to ₹42,297.41 crore in Q2 FY27. Employee cost was higher by ₹128.48 crore or 34.3% at ₹503.28 crore, finance costs increased ₹11.69 crore or 10.0% to ₹128.12 crore, and depreciation rose ₹5.91 crore or 10.7% to ₹61.37 crore. Other expenses increased ₹215.18 crore or 44.1% to ₹703.42 crore.

Other income increased ₹11.88 crore or 27.8% from ₹42.76 crore to ₹54.64 crore. The company recorded an exceptional charge of ₹80.33 crore, versus no exceptional item in Q2 FY26. The filing stated that Redington Gulf FZE impaired its investment in Arena because of challenging economic conditions in Turkey and revised future projections. Tax expense increased ₹91.74 crore or 83.7% to ₹201.30 crore.

Profit before exceptional item and tax was ₹704.14 crore, against ₹459.76 crore in Q2 FY26 and ₹610.87 crore in Q1 FY27. After the exceptional charge and tax, net profit was ₹422.51 crore. The presentation said Arena’s revenue fell 37% year on year because of the exit from Turkish-lira-denominated businesses, and identified ₹40 crore of the intangibles impairment as Redington’s share of loss.

How did the first half of FY27 go?

For H1 FY27, Redington reported consolidated revenue of ₹77,869.38 crore, up ₹22,841.78 crore or 41.5% from ₹55,027.60 crore in H1 FY26. Total income increased 41.5% to ₹77,967.18 crore, while profit before tax rose 61.6% to ₹1,234.68 crore. The H1 FY27 result included an exceptional charge of ₹80.33 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹41,583.17 crore, compared with ₹33,838.94 crore at 31 March 2026, while total equity was ₹10,887.60 crore against ₹10,423.98 crore. Borrowings increased to ₹5,992.40 crore from ₹2,637.45 crore, and cash was ₹1,119.87 crore compared with ₹1,109.76 crore. Inventories rose to ₹11,843.55 crore from ₹8,170.70 crore, trade receivables to ₹25,511.43 crore from ₹21,569.46 crore, and trade payables to ₹20,984.45 crore from ₹18,039.13 crore.

H1 FY27 operating cash flow was negative ₹2,571.17 crore, compared with positive ₹737.48 crore in H1 FY26. Investing cash flow was negative ₹80.95 crore against positive ₹22.85 crore, while financing cash flow was positive ₹2,357.06 crore against negative ₹866.18 crore. Capital expenditure was ₹110.29 crore in H1 FY27, compared with ₹96.03 crore in H1 FY26.

How has Redington done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters and reached ₹42,946.91 crore in Q2 FY27, the highest point in the reported series. Revenue was lowest at ₹25,951.99 crore in Q1 FY26. The current quarter therefore extended the revenue progression, although profit for the period was below the ₹453.49 crore reported in Q1 FY27.

The EBITDA margin bottomed at 1.5% in Q1 FY26 and was 2.0% in Q2 FY27, the same as Q2 FY26 and Q1 FY27. Profit peaked at ₹917.74 crore in Q4 FY25 and bottomed at ₹232.98 crore in Q1 FY26. Profit has risen year on year in each of the last two quarters, reaching ₹422.51 crore in Q2 FY27.

Which businesses drove the quarter?

SISA, comprising Singapore, India and South Asia, reported revenue of ₹25,632.10 crore in Q2 FY27, up 65.5% from ₹15,484.07 crore in Q2 FY26. Segment EBIT was ₹585.93 crore, compared with ₹351.07 crore a year earlier, and the segment EBIT margin was 2.3%. The presentation said SISA revenue grew 66%, EBITDA grew 64% and PAT grew 66% year on year.

ROW, comprising the rest of the world, reported revenue of ₹17,328.90 crore, up 27.4% from ₹13,604.57 crore. Segment EBIT increased to ₹246.33 crore from ₹225.12 crore, with a 1.4% EBIT margin. The presentation said ROW revenue including Arena grew 27%, EBITDA grew 9% and PAT grew 25%, while ROW excluding Arena recorded revenue growth of 38%, EBITDA growth of 49% and PAT growth of 41%.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for Q2 and H1 FY27, together with the limited review reports issued by Deloitte Haskins & Sells Chartered Accountants LLP. It also approved the appointment of Anchal Dhir as an additional non-executive independent director for five years, from 4 November 2026 to 3 November 2031, subject to shareholder approval.

Redington filed its Q2 FY27 earnings presentation and the audio recording of the earnings conference call on 4 November 2026. The presentation outlined the company’s 2026-29 software ambition. The same-day filings did not announce a dividend or a fund raise.

What did Redington's management say?

Management identified geopolitical disruption, logistics constraints and insurance costs in the Middle East, price-related weakness in consumer PC and smartphone demand, and an AI-capex slowdown as risks. It said a pullback in AI-related spending would affect TSG, data centres and PCs, while SSG cloud, security and software were expected to be more resilient. CEO V. F. Hariharan said the company entered the second half alert to geopolitical, liquidity and market risks, and added that the software journey would take a long time and would not “catapult overnight”.

How did Redington shares react?

Redington’s shares rose 3.7% within five minutes of the filing appearing, 4.6% after 15 minutes and 7.2% after 30 minutes. The stock closed 8.4% above its pre-results close on the reaction day and was 5.5% higher by the next day’s close. The Trading & Distributors industry median gain was 1.1% on the reaction day and 1.2% by the next day’s close, leaving Redington ahead by 7.3 percentage points and 4.3 percentage points, respectively.

Earlier results-day moves were mixed: the stock gained 7.1% on 29 July 2026 and 3.3% on 13 May 2026, after falling 5.8% on 4 February 2026 and rising 14.6% on 5 November 2025. The June 2026 peer set included 32 Trading & Distributors companies with a median revenue growth of 15.1%; 18 peers grew more slowly than Redington and 14 grew faster, while 25 of 45 peers with comparable profit data reported higher profit.

How did other Trading & Distributors companies do?

Among 32 Trading & Distributors companies that had filed for the quarter by 6 November 2026, the median revenue growth was 15.1%. Redington’s 47.7% revenue growth was higher than the peer median, with 18 peers growing more slowly and 14 growing faster than the company. Of 45 peers with comparable profit data, 25 reported higher profit.