Redington Q2 FY27: Revenue up 48% YoY on big deals, margin dilution caps profit growth

Redington's consolidated revenue for Q2 FY27 (quarter ended September 30, 2026) rose 47.7% YoY to ₹42,946.91 Cr (+23.0% QoQ), extending the surge that began in Q1 FY27 and consistent with management's August commentary about a data-centre order backlog running into "multiple X of ₹1,000 Cr." Profit for the period, on the total (pre-NCI) basis our records track, was ₹422.51 Cr — up 20.6% YoY but down 6.8% QoQ. Profit attributable to the Company's shareholders, the EPS-basis figure, was ₹541.32 Cr, up 39.6% YoY and 11.4% QoQ; the gap between the two PAT measures widened sharply because non-controlling interests swung to a loss of roughly ₹118.81 Cr, versus about ₹37 Cr a year ago, reflecting weaker results at partly-owned subsidiaries. The quarter carries a ₹80.33 Cr exceptional item — a further impairment of the Arena (Turkey) trade-name intangible, cited by management as a response to the challenging Turkish operating environment — which cut ₹39.68 Cr off shareholders' PAT. Stripping it out, adjusted period-total PAT was ~₹502.84 Cr (+43.6% YoY) and adjusted attributable PAT was ~₹581 Cr (+49.9% YoY), both much closer to the pace of revenue growth than the reported numbers suggest. Even on an adjusted basis margins are compressing: segment operating profit (before finance costs, exceptional items and tax) margin was ~1.94% this quarter versus ~2.0% in both Q1 FY27 and Q2 FY26, and adjusted net margin slipped to ~1.17% from 1.30% QoQ and 1.20% YoY. This is exactly the trade-off management flagged on the August concall — large deals "expected to increase velocity but margin-dilutive" — so the dilution reads as guidance playing out, not a surprise; vsGuidance is a 'met' rather than a beat or miss, since no formal numeric target was ever given. Standalone PAT of ₹838.64 Cr (+57.7% YoY) grew far faster than the consolidated figure — a >3% divergence worth flagging — explained by the Turkey impairment and NCI swing sitting entirely in the consolidated numbers, plus the ROW segment's much thinner profitability (PBT ₹91.50 Cr) next to SISA's ₹532.31 Cr; consolidated remains the primary basis given these are genuine group-level drags, not standalone-entity strength. No analyst consensus specific to this quarter turned up in search; FY27 full-year Street estimates (Trendlyne) pencil in roughly 15-20% PAT growth and EPS of ~₹24.10, well below the growth rate the business is running at through H1, though the full-year number will need to absorb any further one-offs like this quarter's impairment. During the quarter Redington closed its trading window ahead of results (September 25), signed distribution tie-ups with AWS (Redington Gulf, October 22), OPSWAT (October 1) and Siemens (September 10), and incorporated two new step-down subsidiaries in Iraq and Kenya — geographic and portfolio expansion unrelated to this quarter's print. No standalone press release was available in the context to cross-check management's own framing of the result.