Redington Q2 Results: Shares rally 13% on record revenue and profit growth

Shares of Redington rallied on Wednesday after the technology products distributor reported its highest-ever quarterly revenue in Q2 FY27, supported by strong growth across geographies and an improvement in operating earnings.

The stock touched an intraday high of ₹362 on the BSE, up 9.4% from the day’s low of ₹331.

Redington’s revenue grew 47.7% year on year to ₹42,947 crore in the September quarter, compared with ₹29,075.6 crore in the corresponding period last year. The company said this was its highest-ever revenue in any quarter.

Profit after tax (PAT), as per the headline results summary, rose 20.6% to ₹422.5 crore from ₹350.2 crore a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 42.1% to ₹840 crore, compared with ₹591 crore in the year-ago quarter.

EBITDA margin, however, was slightly lower at 1.95% against 2% a year earlier.

Growth across key markets

Redington reported broad-based growth across its key geographies during the quarter. Its global business, excluding Arena, recorded a 54% increase in revenue, while EBITDA and PAT grew 58% and 55%, respectively.

The South Asia, India and Sub-Saharan Africa (SISA) region also delivered strong growth, with revenue rising 66%, EBITDA increasing 64% and PAT growing 66%.

In the rest of the world (ROW), revenue grew 38% and EBITDA increased 49% when Arena was excluded. Including Arena, revenue growth stood at 27%, while EBITDA rose 9%.

For the first half of FY27, Redington’s global business excluding Arena reported 48% revenue growth, with EBITDA and PAT increasing 56% and 59%, respectively. The SISA region continued to lead, with revenue rising 64% and PAT growing 61%.

Arena impairment weighs on reported earnings

Alongside its strong operating performance, Redington disclosed an impairment charge linked to its investment in Turkish subsidiary Arena Bilgisayar Sanayi Ve Ticaret A.S.

The company said Arena’s revenue declined 37% year on year during Q2, partly due to its exit from businesses denominated in the Turkish lira. Challenging economic conditions in Turkey and revised future projections prompted an impairment review of the investment.

Redington Gulf FZE, the company’s wholly owned subsidiary, recognised an impairment of ₹80.3 crore in intangible assets. Redington’s share of the loss was ₹39.7 crore, which was disclosed as an exceptional item in the financial results.

The company said the total value of the intangible assets was $25.6 million. Of this, $17.2 million had been impaired in Q4 FY26, with the remaining $8.4 million recognised during the September quarter.

In its presentation, Redington cited consolidated Q2 PAT of ₹541 crore and indicated that profit would have been ₹581 crore before the impact of the exceptional impairment.

Redington is a technology products distributor and supply-chain solutions provider, with operations across India, the Middle East, Africa, Turkey and other international markets. It distributes products across categories such as information technology, mobile devices, consumer electronics and cloud services, working with global technology brands and channel partners.

Redington shares jumped 13% from the day's low of ₹331 to a high of ₹374 on the BSE on Wednesday, following the company's Q2 earnings announcement.

Also read: Redington shares surge 18% after posting record quarterly revenue and profit