Redington posts record quarterly revenue as cloud, cybersecurity and AI fuel 34% growth

Technology solutions distributor Redington reported its highest-ever quarterly revenue and profit for the first quarter of FY27, driven by strong demand for cloud, cybersecurity, AI infrastructure and enterprise technology solutions.

The company posted consolidated revenue of ₹34,966 crore for the quarter ended June 30, up 34% year over year, while profit after tax (excluding exceptional items) rose 77% to ₹486 crore. PAT margin improved to 1.4%.

India emerged as the company's fastest-growing market during the quarter, with revenue increasing 63% and profit after tax rising 60% from a year earlier. Redington attributed the growth to large enterprise technology projects, higher PC realisations amid industry-wide memory supply constraints, continued demand for premium smartphones and sustained adoption of cloud and cybersecurity solutions.

The company's Software Solutions Group recorded the strongest performance among its business segments, with revenue growing 52% year over year. Growth was led by increased adoption of cloud services, cybersecurity offerings, AI-enabled solutions and subscription-based software models.

The Technology Solutions Group expanded 50%, supported by large enterprise and data centre deployments, while the Endpoint Solutions Group grew 35% as higher memory prices lifted PC realisations. The Mobility Solutions Group posted 21% growth, driven by premium smartphone demand and continued expansion of organised retail distribution.

Operations across the Middle East and Africa also remained resilient despite geopolitical uncertainty, with revenue from the region rising 15%, supported by cloud and cybersecurity-led engagements.

"We have started FY27 on a strong note, delivering our highest-ever quarterly revenue and profit," said V. S. Hariharan, Managing Director and Group CEO of Redington. He said the company's performance reflected broad-based growth across businesses and geographies, with profit increasing significantly faster than revenue.

Hariharan said Redington expects continued opportunities as enterprises accelerate investments in cloud computing, software, cybersecurity, AI-enabled infrastructure and digital transformation initiatives. He added that the company remains focused on operational resilience, capital efficiency and sustainable long-term growth.

The results indicate that enterprise technology spending continues to support India's distribution market despite macroeconomic and geopolitical uncertainties. Demand for cloud platforms, cybersecurity solutions, AI infrastructure and data centre projects is increasingly offsetting slower growth in traditional hardware categories, while premium devices and higher memory prices are also contributing to improved profitability for technology distributors.