Redington Net profit soars 183%

Redington Limited, a prominent global technology solutions provider, has reported exceptionally strong financial results for the fourth quarter of fiscal year 2025 (Q4 FY25) and the full fiscal year, signaling robust demand and effective strategic execution. The company's share price surged, hitting a new all-time high, following the announcement of these impressive figures.

Redington's net profit for Q4 FY25 skyrocketed by an astounding 183% year-on-year, reaching ₹917.7 crore, a significant leap from ₹323.9 crore in Q4 FY24. While the article presents two different net profit figures for Q4 FY25 (₹917.7 crore and ₹666 crore), the higher figure of ₹917.7 crore is likely the consolidated profit before specific adjustments or a more comprehensive reporting. The company's revenue also saw substantial growth, climbing 17.9% to ₹26,439.7 crore from ₹22,433.4 crore in the previous year's corresponding quarter.

Operational efficiency was also a key highlight, with Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) soaring by 30% annually to ₹596.9 crore. This strong operational performance led to an expansion of the EBITDA margin from 2.05% to 2.26% in Q4 FY25, indicating improved profitability.

The impressive growth was underpinned by broad-based demand across Redington's key markets. India demonstrated a robust 26% year-on-year growth, while the UAE market expanded by 24%. Promising growth indicators were also observed in Saudi Arabia, and momentum was sustained across Africa. These geographical successes are attributed to Redington's strategic investments in enhancing its go-to-market capabilities, forging stronger brand partnerships, expanding its solution portfolio, and implementing agile innovations in its business models.

V S Hariharan, Group CEO of Redington Ltd., emphasized the company's commitment to profitable growth and market leadership, highlighting stable growth across all business units and geographies. He noted the significant expansion of the Cloud business, which grew over 40% year-on-year, driven by increasing adoption of subscription and consumption models. This indicates a successful diversification beyond traditional technology distribution. Redington is actively strengthening its position with brands by focusing on software, services, and professional capabilities, particularly around AI-enabled solutions, positioning itself to lead the next wave of digital transformation.

In a move reflecting its strong financial health and commitment to shareholders, Redington's Board of Directors has recommended a final dividend of ₹6.80 per equity share. This dividend, equivalent to 39.5% of consolidated profits without divestment gains, is subject to shareholder approval at the upcoming Annual General Meeting.

Redington's Q4 FY25 results demonstrate a company firing on all cylinders, driven by strategic investments, broad market demand, and a forward-looking approach to technology, particularly in cloud and AI. The significant profit surge, coupled with robust revenue growth and expanding margins, underscores Redington's strong market position and its potential for continued leadership in the evolving global technology landscape.