Remember when tech distributors were just box movers? Redington decided to spice it up this quarter—by mixing stellar India growth with a Turkish soap opera. Revenues jumped 22% YoY (Q1 FY26 concall), with India and Middle East shining. But Turkey’s Arena unit crashed the party, forcing an $8 million provision thanks to a bankruptcy parade. Margins dipped to 5.1%, and free cash flow took a vacation.
Why it matters? Because investors love growth, until provisions slap them in the face. Stick around—things get spicier two scrolls down.
AT A GLANCE
• Revenue up 22% – CFO says, “No Excel sorcery, just deals.” • Margins slipped 60 bps – even AI can’t fight Turkish inflation. • PAT grew 12% – Arena tried, but India carried the squad. • Stock flat – traders can’t decide between cloud hype and Turkish drama.
MANAGEMENT’S KEY COMMENTARY
V.S. Hariharan (CEO): “Best Q1 top-line ever; India and UAE are killing it.” – Translation: Arena, please stop embarrassing us.
Hariharan: “Mobility Solutions grew 44% on premium demand.” – Translation: Everyone’s still buying iPhones, even in a recession.
Hariharan: “Cloud Solutions clocked 41% growth, riding AI wave.” – Translation: Hyperscalers are printing our margins.
Hariharan: “Arena took a hit due to Turkey’s economic chaos.” – Translation: Turkey is our toxic ex—can’t quit, can’t cope.
S.V. Krishnan (CFO): “Large deals drop margins but boost relevance.” – Translation: We’ll take skinny profits over losing vendor love.
Krishnan: “Working capital days dropped to 37, financing costs down 8%.” – Translation: We’re squeezing every rupee, except in Turkey.
Hariharan: “We’re recalibrating our Turkey strategy.” – Translation: Exit door is visible, but we’re still window-shopping.
