Redington Posts Strong Q3 FY26 Results with 16% Revenue Growth
Technology solutions and distribution giant Redington has announced robust financial performance for the third quarter of fiscal year 2026, showcasing significant growth across key segments. The company reported a 16% year-on-year increase in global revenue, reaching Rs 30,959 crore, driven primarily by accelerating cloud adoption and sustained demand for premium devices.
Financial Highlights and Segment Performance
Net profit for the quarter rose by 9% to Rs 436 crore, up from Rs 400 crore in the same period last year. This profit growth underscores Redington's effective cost management and strategic focus on high-margin areas.
The software solutions group emerged as a standout performer, recording an impressive 40% growth. This surge was largely fueled by strong cloud adoption among enterprises, reflecting a broader industry shift towards digital transformation. Meanwhile, the endpoint solutions segment expanded by 21%, benefiting from robust PC demand and increasing enterprise uptake of AI-powered personal computers.
In the mobility segment, which includes the distribution of smartphones such as the Apple iPhone, revenue grew by 15%. This segment contributed approximately 35% of Redington's total revenue, supported by persistent demand in the premium smartphone market and the expansion of a direct-to-retail distribution model.
Strategic Shift and Market Challenges
Redington's management highlighted a strategic transition from a traditional distributor to a digital orchestrator, with a renewed focus on cloud, software, and AI-led solutions. This shift aligns with global trends towards technology integration and value-added services.
However, the company cautioned about potential headwinds in the coming months. Expected price increases in electronics, driven by component shortages and RAM supply constraints, could pressure device volumes over the next 12 to 18 months. Customers may delay refresh cycles in response to these price hikes, impacting sales in the short term.
Diversification into Digital and Industrial Printing
As part of its diversification strategy into higher-value technology services, Redington is expanding its presence in digital and industrial printing. The company anticipates incremental growth in labels and packaging, driven by shorter shelf-life cycles for consumer products and rising demand from segments like photo printing.
To bolster this initiative, Redington launched a demonstration centre on Thursday for HP Indigo and industrial 3D printing solutions. This facility aims to showcase digital printing and additive manufacturing applications for manufacturers, brands, startups, and print service providers.
Ramesh KS, Vice President of Digital Printing at Redington, noted that while the digital printing business currently contributes a small portion to overall revenue, it is evolving into a value-driven, end-to-end solutions model for the group. The demonstration centre targets sectors such as automotive and drones, enabling manufacturers to accelerate prototyping and scale production efficiently.
This move into digital printing represents Redington's commitment to innovation and adapting to market demands, positioning the company for long-term growth in a competitive technology landscape.
