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Redington Q4FY26: record revenue, India leads while Middle East and Arena weigh on cash

Redington closed Q4FY26 with its highest ever quarterly revenue. Consolidated revenue rose 25 percent year on year to 33,269 crore, while PAT excluding exceptional items grew to 467 crore. For FY26, revenue reached 1,19,347 crore, up 20 percent, and PAT was 1,565 crore, up 17 percent.

But the quarter was not a clean run. Management said the West Asia conflict that started on 28 February 2026 impacted March operations, with supply chain disruption and additional operating costs. Alongside this, the group recorded an impairment on its investment in Arena in Turkey, which it treated as an exceptional item. To help investors compare performance, the company highlighted “excluding Arena” metrics. On that basis, Q4FY26 revenue was 32,074 crore, up 32 percent, and PAT was 489 crore, up 17 percent.

India drives the quarter, while ROW slows

The SISA cluster, which includes India, Singapore and South Asia, was the key growth driver. In Q4FY26, SISA revenue grew 48 percent to 19,975 crore, EBITDA grew 25 percent to 465 crore, and PAT grew 42 percent to 306 crore. Within India distribution, management said revenue grew 50 percent and PAT grew 41 percent.

The Rest of World performance was weaker during the quarter. ROW excluding Arena grew 12 percent in revenue to 12,099 crore, but EBITDA fell 17 percent to 239 crore and PAT fell 10 percent to 183 crore. Including Arena, ROW revenue growth was only 2 percent and profitability declined further.

A clear mix shift is visible in the market contribution charts. SISA’s share of consolidated Q4 revenue increased to 60 percent from 51 percent in the prior year quarter, and its share of EBITDA increased to 69 percent from 56 percent. This highlights that the company’s profitability in the quarter leaned more heavily on SISA.

Financial summary

Note: Management also reported Q4FY26 and FY26 performance excluding Arena impairment impacts, as Arena impairment was treated as an exceptional item.

Vertical mix: mobility and endpoint remain the scale engines

The vertical revenue table shows how Redington’s scale continues to be anchored in mobility and endpoint distribution. In Q4FY26, Mobility Solutions Group (MSG) delivered 11,115 crore and End Point Solutions Group (ESG) delivered 10,014 crore, together forming the bulk of quarterly revenue.

Software Solutions Group (SSG) and Technology Solutions Group (TSG) grew faster than the overall business in Q4FY26, reflecting the company’s focus on solutions and enterprise demand. Q4FY26 global vertical revenue was 6,248 crore for TSG and 5,597 crore for SSG.

For FY26, MSG was 42,285 crore and ESG was 36,828 crore. SSG reached 19,834 crore and TSG reached 19,295 crore, underlining the increasing relevance of software, cloud and infrastructure solutions in the overall revenue base.

Execution themes: large deals, platform investments, and capability building

Management commentary in the earnings call focused on three execution themes.

First, large deals in technology infrastructure contributed meaningfully to Q4. Management said TSG saw large deal execution of more than 1,100 crore during the quarter, and total large deals were 1,600-plus crore in Q4. For FY26, management said large deals were close to 2,500 crore. The company emphasized that participation is governed by capital discipline, with no compromise on ROCE.

Second, the company is investing in platform-led distribution and renewals. Management said it rolled out the next version of the Cloud Quarks platform in Q4FY26, adding digital life cycle management and analytics, and it is executing automated subscription renewal platforms supported by customer success teams.

Third, Redington is pushing capability building around AI and services. Management said it set up an AI lab at its Chennai headquarters for internal and external use cases, launched an AI Exchange marketplace with more than 200 AI agents, and expects AI revenue to start during the year and ramp up. It also mentioned five AI learning centers in Tier 2 cities through CSR.

Risks and watch points: Middle East disruption and cash conversion

The company explicitly flagged the impact of geopolitical developments. Management said Middle East operations were affected in March by supply chain disruption, delays in receivables, and higher costs such as war-related premiums on insurance and freight. It also disclosed that war risk insurance coverage was withdrawn by insurers with a short notice.

Cash conversion was weak in Q4. The free cash flow statement reported Q4FY26 net cash flow from operations of -883 crore, driven largely by a -1,465 crore working capital movement, resulting in free cash flow of -999 crore. For FY26, free cash flow was -199 crore, with changes in working capital of -1,809 crore.

Arena in Turkey remains another watch point. The company reported that Arena revenue declined due to exits from Paynet and Turkish Lira denominated businesses, and that Arena recorded a quarterly business loss. Redington’s subsidiary Redington Gulf FZE recognized an impairment of 152.3 crore on its investment in Arena (Redington’s share of loss reported as 75.2 crore). Management said it expects losses to continue next year but at reduced levels, and it expects a real profitability turnaround in the subsequent year.

Takeaways

Redington delivered strong topline growth in Q4FY26 and FY26, supported by India and a growing software and solutions contribution. The quarter also reinforced that the business is exposed to shocks in key markets, especially the Middle East, and that working capital can swing sharply when volumes rise and logistics are disrupted.

The near-term narrative will likely be shaped by two factors that management itself highlighted: how quickly Middle East demand and supply chains normalize, and how the company funds large deals and capability investments while keeping ROCE discipline intact.