Redington Q4 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 25 Aug 2026 | Commercial Services & Supplies | Market Cap: ₹27.4K Cr
Continued strong momentum and growth expected in India, especially after a soft first quarter. Operating profit and return on capital employed are expected to be maintained strongly despite investments, with ROCE targeted above 18-20%.
From Redington's Q4 FY26 earnings-call transcript · updated 25 Aug 2026.
Price
₹353
Market Cap
₹27.4K Cr
P/E Ratio
15.2
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Redington — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹33.2K Cr, net profit ₹288 Cr.
Full financials →📊 Revenue & Sales Performance
- →Continued strong momentum and growth expected in India, especially after a soft first quarter.
- →Middle East (UAE, GCCL) to see some softness in early quarters due to ongoing crisis but expected to recover post-resolution.
- →Africa market to maintain strong growth, with this year already showing significant increases (13% full year, 26% quarter).
- →Large deals pipeline is growing, with full-year values around INR 2,500 crores and expectation of continued rise, indicating future revenue opportunities.
- →SSG (Software Solutions Group) segment, growing above 30%, expected to sustain or accelerate growth with new AI and cloud initiatives.
- →Price increases (ASP growth) will drive a significant part of revenue growth over volume growth in the near future.
- →Data center and cloud infrastructure businesses have large pent-up demand and growth potential.
- →Overall positive outlook on growth, but some regions (e.g., Saudi) may take more time to stabilize.
📈 Profitability & Margins
- →Operating profit and return on capital employed are expected to be maintained strongly despite investments, with ROCE targeted above 18-20%.
- →SSG (Software Solutions Group) profitability may be subdued in the near term due to capability-building investments but expected to be "quite interesting" medium to long term.
- →Elevated operating expenses are viewed as strategic investments, especially in technology and professional services, expected to continue for 1-2 years.
- →Gross margins in SSG aimed to be maintained between 5.5%-6%, improving with more professional services.
- →Dividend payout reduced to conserve cash for growth opportunities, including inorganic acquisitions in professional services.
- →Overall growth is positive, with stable operating profit, though some softness is expected in near-term Middle East markets.
- →Long-term profitability turnaround expected beyond next fiscal year after some short-term losses (e.g., Arena business loss projected to reduce next year with profits towards year-end).
🏗️ Capital Expenditure Plans
- →Redington Limited is actively exploring inorganic growth opportunities, especially in professional services areas related to cloud and security.
- →The company is investing in capability building, particularly in technology and the Software Solutions Group (SSG), to sustain future growth.
- →Elevated operating expenses due to investments in technology and talent are expected to continue for 1-2 years as part of growth strategy.
- →The board declared a dividend of INR 6 per share (30% of profits), but cash conservation is a priority to fuel growth opportunities and to manage short-term geopolitical uncertainties.
- →The company plans to conserve cash to manage higher working capital needs expected from large deals and inventory requirements amid current supply challenges.
- →Focus is on maintaining strong return on capital employed (above 18-20%) while pursuing growth and investments.
💰 Fundraising & Capital Structure
📋 Order Book & Pipeline
Key Metrics
Frequently Asked Questions
What were Redington Q4 FY26 results?
Continued strong momentum and growth expected in India, especially after a soft first quarter. Operating profit and return on capital employed are expected to be maintained strongly despite investments, with ROCE targeted above 18-20%.
What is Redington share price analysis?
Redington currently shows a neutral. The stock trades at a P/E of 15.2 with a market cap of ₹27,405 Cr. Investors should review the full earnings analysis for detailed insights.
Is Redington planning capital expenditure?
Redington Limited is actively exploring inorganic growth opportunities, especially in professional services areas related to cloud and security.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.