Redington's Q1 net profit jumps 94.65% YoY as margin recovers
Revenue grew +34.57% YoY while expenses rose +33.90%; other income accounted for 7.07% of pre-tax profit.
Filed 29 Jul 2026, 17:31 IST · after market close · Redington Ltd (REDINGTON)
Key takeaways
- Consolidated net profit rose +94.65% YoY to Rs 453.49 cr, helped by +34.57% revenue growth.
- Operating margin improved 0.49 percentage points YoY to 2.03%, but remained 22.32 percentage points below the Services peer median.
- Sequential revenue rose +5.15% and expenses grew +4.96%, lifting operating margin by 0.18 percentage points from Q4FY26.
Price around the results
Revenue growth lifted operating profit
Redington's consolidated revenue grew +34.57% YoY, while expenses increased +33.90%, allowing operating profit to rise +76.83% to Rs 707.75 cr. The sequential momentum also held, with revenue up +5.15% and operating profit up +15.20% from Q4FY26. Lower interest expense YoY, down 2.49%, provided a small additional support to pre-tax profit.
Margin recovered, but stayed low versus peers
Costs grew slightly slower than revenue in both comparisons, widening operating margin by 0.49 percentage points YoY and 0.18 percentage points QoQ. The margin recovery follows 1.54% in Q1FY26, 2.03% in Q2FY26, 2.02% in Q3FY26 and 1.85% in Q4FY26, so the latest quarter reversed the previous decline rather than extending it. Among seven Services companies that had reported, Redington's 2.03% margin was 22.32 percentage points below the 24.35% median and ranked second from the bottom.
Tax and other income shaped reported profit
The YoY tax rate rose 2.32 percentage points to 25.76%, which kept net-profit growth below the 100.73% increase in pre-tax profit. The QoQ tax rate fell 1.48 percentage points, supporting the 57.69% sequential rise in net profit. Other income contributed 7.07% of pre-tax profit, so it was a supporting factor but not the main source of earnings.
Expansion and disruption remain management themes
Management said Redington acquired a 70% stake in Turkey-based Linkplus and is implementing reverse logistics for product returns and recycling. The company also told analysts that AI-based service-delivery automation is reducing the number of system integrators and disrupting the ecosystem. Its presentation cited VAR India's identification of Redington as India's number-one distributor.
No immediate market reaction after the filing
Across eight recent result reactions, the stock rose after five and fell after three, with a median absolute move of 5.57%, indicating that post-result moves have usually been material but mixed.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹34,922 cr | ₹33,213 cr | +5.15% | +34.57% |
| Other income | ₹43 cr | ₹-97 cr | — | -12.86% |
| Expenses | ₹34,215 cr | ₹32,599 cr | +4.96% | +33.90% |
| Operating profit | ₹708 cr | ₹614 cr | +15.20% | +76.83% |
| Operating margin (%) | 2.03% | 1.85% | — | — |
| Interest | ₹89 cr | ₹72 cr | +24.03% | -2.49% |
| Depreciation | ₹51 cr | ₹50 cr | +0.66% | -5.80% |
| Profit before tax | ₹611 cr | ₹395 cr | +54.56% | +100.73% |
| Tax | ₹157 cr | ₹108 cr | +46.21% | +120.57% |
| Net profit | ₹453 cr | ₹288 cr | +57.69% | +94.65% |
| EPS (₹) | ₹6.22 | ₹5.01 | +24.15% | +76.70% |
Operating margin of 2.03% compares with a Services sector median of 24.35% across 7 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Redington acquired a 70% stake in Turkey-based Linkplus.
New initiatives
- Redington is implementing reverse logistics for product returns and recycling.
Competition
- Redington was identified as India's number-one distributor by VAR India.
Problems & risks
- The company says AI-based service delivery automation is reducing SIs and disrupting the ecosystem.
What to watch
- Whether operating margin holds above 2.03% after the Q1FY27 recovery.
- Whether expenses continue to grow below revenue's +5.15% QoQ pace.
- Whether interest reverses the +24.03% QoQ increase and other income stays near 7.07% of pre-tax profit.