Redington Limited (REDINGTON)
Small CapServices stocks · Small cap · NSE
Redington is transforming from a software distributor to an intelligent orchestration provider, focusing on Software, Cloud, and Security (SSG) services. It aims to leverage a platform-led, Everything-as-a-Service model to drive higher growth, profitability, and predictable recurring revenue across India, META, and SESA regions.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +35% YoY · PAT +94% YoY · margin expansion · +5% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹34,922 Cr | +34.6% | +5.2% |
| EBITDA | ₹708 Cr | +77.0% | +15.3% |
| Operating margin | 2.0% | +50 bps | +10 bps |
| PAT | ₹453 Cr | +94.4% | +57.3% |
| PAT margin | 1.3% | +40 bps | +43 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Redington's SSG segment achieved $2.2 Bn Net Revenue in FY26, with 25% YoY Gross Revenue growth, driven by 40% YoY Cloud growth. The company is targeting $5 Bn Gross Revenue by FY29(E) through its platform-led transformation.
Management is actively pursuing a strategic shift towards a higher-margin, recurring revenue SSG model, showing strong growth in Cloud and Professional Services. The focus on platform development and AI integration aligns with market trends, but execution on vendor alignment and platform rollout remains key.
Portfolio Revenue Share (FY26)
Latest issuer-disclosed distribution across 4 reported categories.
Cloud Services
40% YoY growth in Cloud with 34% 3yr-CAGR
Professional Services
Professional Services revenue @ USD 10 Mn with > 20% GM, scaling up
Recurring Revenue Model
Portfolio secured through ARR & subscription-based revenue streams; FY’25 @ 72%
AI Integration
AI powered Smarter experiences, GenAI & Agentic AI Motions
SSG Global Team
~1000 SSG Team
Professional Services Team
500+ PS team
Delivery Centers
5+ delivery centers
Platforms
06+ Platforms
Market Shift to XaaS
Consumption models moving from perpetual licenses to flexible, outcome-based subscriptions
Platform-Led Distribution
Vendors consolidating through marketplaces and API-first ecosystems
Growing Market Opportunity
SaaS market expected to exceed $700B by 2028, Cloud spend set to exceed $1.3T by 2028, Cybersecurity spending projected to exceed $500B by 2030
Strategic AWS Partnership
SCA 2.0: 5-year commitment (Oct 2026–Sep 2031) — largest SCA in APJ
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation provides annual financial data (FY23-FY26) and multi-year targets (FY29E), making year-over-year comparisons most relevant for assessing growth trends and strategic progress.
Cloud Growth
40% YoY growth in Cloud
SSG Net Revenue (FY26)
$2.2 Bn
SSG Gross Margin (FY26)
$126 M
Professional Services Revenue
USD 10 Mn with > 20% GM, scaling up
FY29(E) Targets
Path to USD 5 Bn Gross Revenue with GM 5.5% - 6% and PAT 1.8% - 2%
SSG Transformation
SSG transforms from a transactional distributor into a high-margin, platform-driven services orchestrator
Profitability Focus
Higher-margin services & Bundled services security & cloud at double-digit margins
Platform Development
Deploy SSG's unified subscription and services platform
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| CloudQuarks Platform Rollout | CQ 2.0 released | CQ 2.1 & CQ 2.2 – September & December 2026 |
| Vendor Alignment | Major cloud vendors onboarded. | Software and security vendors in progress |
| Recurring Revenue Mix | Not explicitly stated for current period. | Set ARR milestones and track subscription mix quarterly |
| SSG Investment Opex | FY26: USD 1.5 – 2 Mn | FY27 Planned : ~ USD 10 Mn |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
68Bullishfull bull SMA stack · SMA20 +18.1% / mo · MACD − · near 52W high
Technical chart
REDINGTONdaily · 1Y · AUTO+49.2%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 65. Wait for confirmation.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~15.3% over last month) — short-term momentum positive.
- RSI(14) at 65 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 42.3% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +4.6%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 47 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 47 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Fair-value margin of safety is positive at 35.0%.
- Cash flow contributes 6/10 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Valuation is weaker at 10/30; verify the latest quarterly trend.
- Growth is weaker at 9/25; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 78th percentile of the scored universe and 83rd percentile within Services. Main check: financial discipline is weak at 52/100.
High Trust Lite: Promoter pledge is zero. Key concern: 1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Services: 83rd pctile, median 66 · Small: 80th pctile, median 66
187 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.4%.
- ▸10 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
- ▸Profit margin is 2%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 16.10
- P/B
- 2.85
- EV/EBITDA
- 11.63
- Market Cap
- 29027.00Cr
Profitability
- ROE
- 16.90%
- ROCE
- 18.40%
- ROA
- 4.45%
- Dividend Y
- 1.62%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 16.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- 5.00%
Balance Sheet
- Debt/Equity
- 0.28
- Interest Coverage
- 7.13×
- Altman Z
- 4.51
- Book Value
- 130.00
Cash Flow
- FCF Yield
- 2.41%
- FCF Positive Y
- 10/5
- OCF
- 231.00 Cr
- EPS TTM
- 21.76
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 96%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable names in Services, ranked by similarity
Peers
Business-comparable peers in Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.