Redington Q1 Results: Shares of company fall 7% despite growth in net profit, revenue YoY

Shares of integrated technology solutions provider Redington Ltd on Wednesday (July 30) declined more than 7% after the company posted a 12% growth in net profits of ₹275 crore in the first quarter of FY26, compared to ₹246 crore in the same period a year ago.

The company’s revenue for the June quarter stood at ₹25,952 crore, a 22% increase year-on-year from ₹21,282 crore. Though the company’s net profit and revenue grew on a year-on-year basis, this was significantly lower on a sequential basis.

In May, the company reported

that its net profit for the fourth quarter of FY25 soared 183% year-on-year to ₹917.7 crore. Similarly, revenue for Q4 was ₹26,439.7 crore, higher than the revenue recorded in Q1 FY26.

The Chennai-based company’s earnings before interest, taxes, depreciation, and amortisation grew 8% to ₹401 crore from ₹371 crore a year ago. However, the margin for the quarter was at 1.6% compared 1.7% last year.

The company said that its performance was supported by solid execution across businesses and geographies and securing new opportunities in technology & cloud Solutions. From businesses perspective, strong momentum was a result of high growth in the premium mobility segment and large deal wins & execution in India & UAE.

“Cloud grew by a phenomenal 41% YoY growth on the back of increasing adoption of subscription and consumption models. With our enhanced focus on software, cyber-security and application software, we have embarked on the next wave of digital transformation that will further strengthen our growth trajectory.” said Mr. V.S. Hariharan, Managing Director & Group CEO, Redington Ltd

Also read: Redington gets ₹175-crore tax demand

Shares of the company closed at ₹265.60, down 7.7% or ₹22.10 on the BSE. The stock has declined more than 18% in the last month.