Synopsis:
The IT distributor’s shares surged 16% after record Q2FY26 revenue and strong growth across India and the Middle East. Expanding cloud, software, and mobility segments, coupled with rising premium device demand, reinforce its diversified portfolio and long-term growth outlook, backed by global partnerships and digital transformation momentum.
The shares of the global IT services provider gained up to 16 percent in today’s trading session after the company booked its highest-ever revenue in Q2FY26 & growing across India and the Middle East.
With a market capitalization of Rs 22,526.83 crore, the shares of Redington Ltd were trading at Rs 288.15 per share, increasing around 15.12 percent as compared to the previous closing price of Rs 250.30 apiece.
Q2FY26 Highlights
The shares of Redington Ltd have seen positive movement after announcing its financial performance in Q2FY26, in which revenue increased by 17 percent on a year-on-year basis from Rs 24,896 crore in Q2FY25 to Rs 29,076 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 12 percent from Rs 25,952 crore in Q1FY26 to Rs 29,076 crore in Q2FY26.
Moreover, net profit increased by 24 percent on a yearly basis from Rs 283 crore in Q2FY25 to Rs 350 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 50 percent from Rs 233 crore in Q1FY26 to Rs 350 crore in Q2FY26.
Furthermore, the Software Solutions Group (SSG) posted a 48 percent year-on-year increase, driven by sustained momentum in cloud, software, and cybersecurity. The Mobility Solutions Group (MSG) grew 18 percent year-on-year, driven by higher demand in the premium segment, new product introductions, and robust execution under its Direct-to-Retail model.
Additionally, the Technology Solutions Group (TSG) saw a 9 percent year-on-year rise, aided by stronger enterprise demand and large-deal execution both in India and overseas. The Electronics Solutions Group (ESG) grew 11 percent year-on-year, led by rising PC demand in India amid accelerating AI PC penetration.
Brokerage Recommendations
Monarch Networth Capital Ltd, one of the well-known brokerages in India, gave a ‘Buy’ call on the IT stock with a target price of Rs 370 apiece, indicating a potential upside of 28 percent from Thursday’s closing price of Rs 289.30 per share.
The brokerage highlighted Redington as one of India’s most diversified technology distributors, with a strong portfolio across mobility, cloud, software, and ICT solutions. Backed by partnerships with global brands like Apple, HP, and Dell, the firm is well-positioned to capitalize on India’s accelerating digital adoption and expanding cloud transformation opportunities.
Further, the company anticipates robust growth ahead, with its high-margin Software Solutions and Cloud businesses projected to expand threefold over the next four to five years. Additionally, increasing demand for premium smartphones from leading brands and a likely PC refresh cycle from H2FY26 are expected to further strengthen momentum across its mobility and electronics segments.
Redington Ltd is a leading technology distribution and supply chain solutions provider, connecting global tech brands with regional markets. Operating across Asia, the Middle East, and Africa, it delivers IT, mobility, cloud, and digital services, enabling businesses and consumers to access cutting-edge technology efficiently and at scale.
The company operates in 32 countries and serves 40 markets across Asia, Africa, and the Middle East. With leading positions in several regions, its presence spans key markets like India, UAE, Saudi Arabia, South Africa, and Malaysia, underscoring its diversified reach and strategic international expansion.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
