Redington shares fall 5% after the company's business update following geopolitical tensions in Gulf region; all you need to know

In its filing to stock exchanges, Redington said that it has been informed by its step-down subsidiary, Redington Gulf FZE, that due to the ongoing geopolitical tensions, its operations in the Gulf region are pursued in a restricted manner due to the following reasons:

• Re-routing of shipments and closure of major ports/airspace, resulting in increased transit time;

• Requirements for increased working capital due to higher inventory and requests from customers for delayed payments. The business is prioritising the need for capital preservation.

• Increase in freight, insurance, and logistics costs.

Revocation of war risk coverage by insurance providers for companies operating in the region; alternative arrangements are currently being evaluated.

Redington stated that the safety and well-being of Redington’s employees remain a top priority.

The company has implemented enhanced safety protocols and business continuity plans across affected locations and continues to operate in full compliance with all applicable international regulations, trade restrictions, and sanctions. Given the dynamic nature of the situation, Redington’s senior management is actively monitoring developments and will take all appropriate actions as necessary.

"At this stage, it is not possible to reliably quantify the financial impact, since the same would depend on the duration and intensity of the situation. The company will continue to closely monitor developments and keep stock exchanges informed of any material updates," it added.

About Redington

Redington Limited is an information technology company with a product portfolio that includes IT solutions, business process solutions, logistics, and financial services.

The company's network has expanded to over 38 markets with more than 290 international brand associations and 70 sales locations. Redington was originally incorporated in 1961 but began operations in 1993 after acquiring the Indian branch of Redington Pte Ltd, Singapore.

The company's principal activity is wholesale distribution of machinery, equipment, and supplies. It also offers solutions covering software-defined storage, fault-tolerant solutions, store visualisation, enterprise storage, and hyper-converged infrastructure.

Redington made an entry into the consumer durable distribution space in 2005. The next year, the company took up 100% shareholding of Redington Distribution Pte Limited and Cadensworth (India) Private Limited. It signed a distribution agreement for the distribution of Apple's range of products in India.

Redington Q3 FY26 results

For Q3 FY26, Redington recorded global revenue of ₹30,959 crore, representing a 16% year-on-year growth, while net profit stood at ₹436 crore, up 9% YoY, reflecting sustained operational discipline and resilient demand across markets. PAT margin for the quarter stood at 1.41%, supported by balanced growth across business segments.

Growth driven by solutions-led execution

The quarter’s performance reflects Redington’s continued evolution from a distribution-led model to a comprehensive technology solutions provider, the company said in its earnings release.

Demand remained strong across cloud, cybersecurity, software, and enterprise infrastructure as customers accelerated investments in AI-enabled modernisation, digital transformation, and secure infrastructure.

The strong growth this quarter came on the back of key markets: India at YoY growth of 25%, the UAE at 19%, and Africa at 14%. "These results were driven by enhanced go-to-market alignment, expansion into new geographies, upcountry penetration, and an increase in channel partner width across key markets," the release added.