1. At a Glance
Redington Ltd is that rare corporate creature that makes ₹30,922 crore of quarterly revenue while politely whispering, “Sir, margin sirf 2% hai.” At a market cap of ₹20,941 crore and a stock price of ₹267, this is a company that moves oceans of hardware, phones, servers, and cloud subscriptions across 32 countries, yet survives on margins thinner than a Delhi winter jacket.
Q3 FY26 numbers are solid but not spectacular: revenue up 15.7% YoY, PAT up 8.9% YoY, and EPS of ₹5.57 for the quarter. Over the last twelve months, EPS stands at ₹22.56, translating into a P/E of ~14.9, which is refreshingly non-delusional in today’s market.
ROCE at 18.9%, ROE at 14.4%, dividend yield at 2.54%, and zero promoter holding because—plot twist—there are no promoters. This is a fully board-led, institution-dominated company where FIIs own ~62% and nobody is pledging shares at 3 a.m.
But let’s be clear: this is not a sexy SaaS story. This is a high-volume, low-margin, working-capital gymnastics business where execution matters more than PowerPoint. So the big question: is Redington a boring compounder… or a glorified courier with an MBA?
2. Introduction
Redington is what happens when someone looks at IT hardware, smartphones, servers, cloud licenses, and logistics and says, “Let’s become the middleman… everywhere.” Founded in 1993, the company has quietly built a distribution empire spanning India, Middle East, Turkey, Africa, and beyond—without ever pretending to be a tech innovator.
This is not a company that invents products. It moves products. From Apple iPhones to HP laptops, Dell servers to Microsoft licenses, Redington sits between global OEMs and thousands of resellers, retailers, and enterprises. Think of it as the UPS + credit provider + insurance agent + therapist for IT vendors in emerging markets.
What makes Redington interesting is scale. FY25 revenue crossed ₹99,334 crore, TTM revenue is ₹1,12,389 crore, and yet operating margins stubbornly hover around 2%. That’s
not a bug—it’s the business model.
Despite wafer-thin margins, Redington generates respectable returns because:
- Asset turns are high
- Working capital is tightly managed (most of the time)
- Volume growth keeps compounding
And occasionally, the company spices things up with one-off gains, like the ₹626 crore exceptional gain from the Paynet divestment, which made FY25 profits look unusually cheerful.
But remove the exceptional sugar rush, and you’re left with a brutally honest distributor that lives and dies by execution, scale, and credit discipline.
So… is that good enough for long-term wealth creation? Let’s dissect.
3. Business Model – WTF Do They Even Do?
Explaining Redington’s business is easy. Respecting it is harder.
Redington buys technology products from OEMs, warehouses them, finances them, transports them, sells them to resellers, helps with after-sales service, and sometimes even manages cloud subscriptions and logistics for third parties. Basically, OEMs outsource their emerging-market headaches to Redington.
Core Vertical Breakdown (9M FY25)
- End-Point Solutions (36.6%)
PCs, printers, consumables. Boring, cyclical, necessary. - Technology Solutions Group – TSG (30.0%)
Servers, networking, storage, security, software. Higher value, enterprise-focused. - Mobility Solutions (34.3%)
Smartphones and feature phones. Apple alone contributes 29% of total vendor revenue. Dependency risk? Yes. Volume machine? Also yes. - Cloud Solutions (4.1%)
Reselling and managing cloud services. Small today, strategically important. - Logistics, Renewable Energy, Other Services (~3–4% combined)
