Redington: enterprise hardware up 115% in Singapore, India and South Asia, software 37%
Redington’s results for the quarter to 30 September: sales by product group in Singapore, India and South Asia, the cash tied up in stock and credit, and which profit figure to read.
Redington, the Chennai-based distributor that sits between technology makers and the resellers who sell to companies, more than doubled its sales of enterprise hardware, the servers, storage and networking gear, in Singapore, India and South Asia in the quarter to 30 September: ₹6,553 crore, up 115% from ₹3,041 crore. Its software, cloud and security sales in the region grew 37%, to ₹2,906 crore.1 Its India distribution business grew revenue 67%; the deck gives that business only as growth rates, not rupees.1 Group revenue from operations was ₹42,947 crore, up 48%.2
Servers and networking more than doubled; software, cloud and security grew slowest of Redington's four groups
Revenue by business group in Singapore, India and South Asia, ₹ crore, quarter to 30 September 2025 and 2026
- Q2 FY26
- Q2 FY27
Show tableHide table
| Q2 FY26 | Q2 FY27 | Change | |
|---|---|---|---|
| Servers & networking (TSG) | 3,041 | 6,553 | 115% |
| Phones (MSG) | 5,283 | 8,998 | 70% |
| PCs & printers (ESG) | 4,892 | 6,945 | 42% |
| Software & cloud (SSG) | 2,126 | 2,906 | 37% |
Source: Redington, Q2 FY27 earnings presentation (verticals revenue) · as of 4 November 2026 · Group names are Redington's: TSG, MSG, ESG, SSG; the four groups do not add to the region's total
01What a distributor's books show, and what they do not
Redington defines its Technology Solutions Group as “Networking, Server & Storage, Power & Collab”, and its Software Solutions Group as cloud and professional services, software licensing and subscription, and enterprise security.1 In rupees, phones added slightly more than servers: ₹3,715 crore against ₹3,512 crore. Apple alone was 30% of group revenue; Dell rose to 6% from 4%, Google to 5% from 3%.1
A distributor keeps a thin slice. Gross margin was ₹2,100 crore on ₹43,002 crore of total income, about 4.9%, against 5.1% a year earlier, and the deck’s profit measure was 1.4% of it.1 Revenue is units times price, and the deck splits neither. In the same quarter IDC counted 20.1% fewer PCs shipped worldwide and lists “higher price points driven by AI data center build out” among the causes;3 Redington’s PC and printer revenue in the region rose 42%. How much of either rise is price, the filings do not say. The price side is in our Trend on PC shipments and memory.
02The distributor is financing the growth
Redington buys stock from makers and gives resellers credit, so faster sales tie up cash. Working capital rose by ₹2,568 crore in the quarter, and free cash flow was minus ₹1,871 crore, against plus ₹1,523 crore a year earlier.1 Since 31 March, inventories went from ₹8,171 crore to ₹11,844 crore and short-term borrowings from ₹2,637 crore to ₹5,992 crore.2
31 days
working capital in Singapore, India and South Asia, from 26 a year earlier
Redington deck
₹2,568 cr
rise in working capital in the quarter
Redington deck
₹5,992 cr
short-term borrowings on 30 September, from ₹2,637 crore in March
Redington results
IDC’s analyst Jitesh Ubrani said of the PC market that “channels are now worried about carrying too much inventory into a market where high prices are suppressing demand.”3 That is IDC’s worldwide reading; Redington does not comment on it in the deck.
03Three profit figures, one quarter
Sources
- Redington, Earnings Presentation Q2 FY27 — 4 November 2026
- Redington, unaudited standalone and consolidated financial results, quarter and half year to 30 September 2026 — 4 November 2026
- IDC, PC Market Woes Continue: Shipments Fall 20.1% in Q3 2026 — 8 October 2026
Disclosure. TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view.
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