$REDINGTON

By Neha Gupta | SEBI Registered Research Analyst $REDINGTON Redington Limited delivered another year of resilient growth in FY26, proving that it is no longer just an IT distributor. Management is repositioning the company as an "Ecosystem Orchestrator"—connecting technology vendors, cloud platforms, enterprises and channel partners across multiple geographies. 📊 FY26 Financial Snapshot 🔹 Revenue: ₹1,19,347 Cr (+20% YoY) 🔹 PAT: ₹1,565 Cr (+17% YoY, excluding exceptional items) 🔹 Working Capital Days: Improved from 36 to 34 🔹 Positive Operating Cash Flow: ₹231 Cr The numbers reflect a business that is growing while improving capital efficiency. 🚀 The Growth Story Key Growth Engines ☁️ Cloud Computing 🤖 Artificial Intelligence (AI) 💻 Software Solutions 📡 5G Infrastructure 🌏 Expansion across South-East & South Asia One of the biggest positives was the Software Solutions Group (SSG), which reported 37% growth, highlighting management's successful pivot toward higher-margin businesses. 🌍 Industry Tailwinds The long-term outlook remains favourable. Major structural drivers include: ✅ AI-enabled PCs ✅ Enterprise cloud migration ✅ Data localisation ⚙️ Execution Check ✔ 20% revenue growth ✔ Strong software business expansion ✔ Better working capital efficiency ✔ Healthy operating cash generation • Enterprise IT spending slowdown 💡 Investment View Redington is steadily evolving from a traditional distribution business into a diversified technology solutions platform. Growth in software, cloud and AI-related businesses, coupled with disciplined capital allocation and strong governance, enhances the long-term investment case. Disclaimer: This article is for educational and informational purposes only and should not be construed as investment advice or a recommendation to buy, sell or hold any security. Investors should conduct their own research or consult a SEBI-registered investment adviser before making investment decisions.