---
title: "Redington: enterprise hardware up 115% in Singapore, India and South Asia, software 37%"
summary: "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."
url: https://www.thetechbag.com/blog/redington-enterprise-hardware-up-115-software-37
format: Note
desk: "Markets & the AI economy"
region: India
published: 2026-11-04
facts_checked: 2026-11-04
author: TechBag (The TechBag Journal)
tags: ["Redington","IT distribution","earnings","servers","networking","storage","software distribution","Apple","Dell","working capital","free cash flow","Arena","India"]
cover: https://www.thetechbag.com/blog/covers/redington-enterprise-hardware-up-115-software-37.png
---

# 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.*

Note · Markets & the AI economy · By TechBag · Published 2026-11-04 · Facts checked 2026-11-04 · Canonical: https://www.thetechbag.com/blog/redington-enterprise-hardware-up-115-software-37

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]

**Figure: 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 | 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

## What 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](https://www.thetechbag.com/blog/pc-shipments-fall-memory-prices-ai-data-centres).

## The 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.

## Three profit figures, one quarter

TechBag countWhich profit to quote

Profit for the quarter was ₹422.5 crore, up 21% from ₹350.2 crore. Profit attributable to Redington’s shareholders was ₹541.3 crore, up 40%, because ₹118.8 crore of subsidiaries’ losses belongs to other shareholders.[2] The deck’s ₹581 crore, up 50%, also adds back Redington’s ₹39.7 crore share of an ₹80.3 crore impairment at Arena, its Turkish subsidiary, whose revenue fell 37% after it left lira-denominated business.[1] Growth rates are our arithmetic on the filing.

How we did this

Figures as of 4 November 2026, 7pm IST

Group figures are from Redington’s earnings presentation; profit, balance-sheet and cash-flow figures from its reviewed results, both of 4 November. The region is SISA: India is not reported apart from growth rates. Margins, rupee additions and profit growth are our arithmetic. Not used: the earnings call, and any share-price move.

Spotted an error? Write to us; corrections are published at the foot of the piece.

Sources

1. [Redington, Earnings Presentation Q2 FY27](https://redingtongroup.com/wp-content/uploads/2026/11/Earnings-Presentation-Q2FY27.pdf) — 4 November 2026
2. [Redington, unaudited standalone and consolidated financial results, quarter and half year to 30 September 2026](https://redingtongroup.com/wp-content/uploads/2026/11/FS-for-Website.pdf) — 4 November 2026
3. [IDC, PC Market Woes Continue: Shipments Fall 20.1% in Q3 2026](https://www.idc.com/resource-center/press-releases/idc-pc-tracker-3q26/) — 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.

**Read this next:** [PC shipments fell a fifth while DRAM contract prices rose 5× in a year](https://www.thetechbag.com/blog/pc-shipments-fall-memory-prices-ai-data-centres) — The other side of the hardware market: worldwide PC shipments fell a fifth while DRAM contract prices rose fivefold in a year.

Go deeper on TechBag

- [The Dell hub](https://www.thetechbag.com/dell) — the Dell products TechBag covers; Dell rose to 6% of Redington's revenue this quarter
- [The catalogue](https://www.thetechbag.com/browse-products) — the software TechBag quotes in INR with GST, the market Redington's software group serves