Strong growth on ASP lift, but demand elasticity and inventory risk cloud near term

Delivered PAT ₹453.5 Cr, actual YoY +94.6%

Delivered 34,922.5 Cr, +34.6% YoY

Middle East, Africa +15% (vs feared -20%), UAE -3%, Saudi -7%

ESG 35% revenue growth but mgmt confirmed unit growth flat, pure ASP

~₹700 Cr from India data center, backlog not quantified but implied strong

FY26 call expected 1-2 quarters softness; Q1 delivered 15% growth, less than feared -20%. GCC/Levant 95%, Africa 39% strong. Still cautious UAE/Saudi but not a washout.

Q1 India +63% revenue, 60% PAT. FY26 call promised India strength; delivered. All BUs (Mobility, Endpoint, TSG, SSG) double-digit. Direct-to-retail Android strategy now 10% revenue share.

FY26: 'strong pipeline'. Q1: ₹1,000 Cr large deals (₹700 Cr India), backlog 'multiple X' that, neocloud operators racing to set up. Visibility raised for 4-5-6 quarters ahead.

FY26: smartphone premium segment +800% India growth. Q1: mgmt cautious ('one more quarter visible'), price increases dampening demand, elasticity unknown post-Q2.

FY26: exiting Lira business to clean up dollar IT. Q1: still ₹64 Cr loss (Redington ₹31 Cr), hypercompetitive, margin compressed. No turnaround timeline given.

Unit growth flat to single-digit. 2-3 months inventory in channel, mostly Tier 2 stocking up. Stock-and-sell phenomenon on ESG alone (Mobility, TSG, SSG no stocking).

₹700 Cr India data center, funnel looks 'very promising, many multiples' of ₹1,000 Cr for next quarters. Data center capacity maxed in Europe, India tax holiday driving neocloud setup.

Premium phones up 8x but saturating — price-sensitive moving up 1-2 categories. As prices increase, elasticity unknown. One more quarter visible but need to watch. TSG large deals will continue.

Surprised Q1 was strong (normally weak). Q2 expect good quarter, Q3 festive pickup, but post-festive Q4 unknown. Playing quarter-by-quarter because price/demand dynamics unclear.

Cloud strongest, software (infra + verticals like Autodesk) growing well, security slower, services doubled (professional services). Cloud 55% SISA, 80% Rest of World YoY.

Hypercompetitive market, hardware compressed, gross margin surprise compression, 35% inflation opex. Considering strategic options, both revive and structural change in parallel. Debt down $120M → $90M.

Inventory days up industry-wide but payables better, especially ME (vendor credit advantage from geopolitical situation). Overall managed better than Q1 prior.

SSG, TSG, Mobility largely non-price. ESG stock-and-sell ~2/3, so 2/3 of ESG from price. Everything else organic demand.

High revenue, inventory days up, interest rates firming in market (despite RBI not raising). Take Q1 as run rate, some one-off ME freight/insurance impacts.

One-off from prior year contested demands won in court. Not recurring.

Being cautious on ME delays. If delays exceed expectations, provisioning higher. But collections likely possible in future.

One premium brand, created 6,000 dedicated outlets, end-to-end supply chain automation + GTM machine. Worked very well, high margin both for OEM and us.

No taper seen for 4-5-6 quarters. AI GPUs everywhere, all server/storage will be AI. Data center backlog huge. PC mix will shift (entry/mid/high/AI SKUs) but volume won't taper.

Not a new deal, just designating us Frontier Partner (recognition of AI readiness). Services ~2.5% of overall revenue now. Selling MS + other hyperscaler cloud + proprietary AI exchange (250+ agents).

PC 25-50% raises over last 2-3 quarters, Apple, servers all raised. Elasticity unknown — consumer must absorb shock, commercial has ROI case. Will see impact over next quarters.

Combination of direct and distribution. India higher distribution (more mid-market), US higher direct (more large enterprise). We add migration, modernization, managed services value.

CloudQuarks 1.0 → 2.0 with customer/vendor persona, marketplace, analytics. Target best-in-class in 1-2 years. Digital Platform for long-tail partners. Both will reduce cost of servicing and differentiate us.

Large deals currently marginal. No separate reporting. Profitability can't match normal business, so dilution expected. Objective is ROCE >18%, margin compromise secondary. Will see dilution.

Opportunity, not threat. Evolution to omnichannel (like hardware). We'll participate in hyperscaler marketplaces, create our own, bring best value-adds. Win by bringing orchestration.

ESG 35% revenue growth is 100% ASP, unit flat. If component shortage ends or consumer elasticity kicks in, volume could crater and offset ASP gains. Premium phone already saturating.

Tier 2 stocking up in view of demand and to capitalize on rising prices. If demand softens in Q2/Q3, channel unwind could erase growth. Particularly risky in ESG.

While region grew 15% YoY, UAE and Saudi flat/negative. 30-day supply delays, $3M freight/insurance overrun Q1 (partial pass-through). New projects postponed. If crisis extends, recovery delayed.

Arena still ₹64 Cr loss (Redington ₹31 Cr) despite exiting Lira business. Hardware compressed, hypercompetitive, inflation opex, gross margin surprise. Strategic review ongoing but no clear plan/timeline.

₹1,000 Cr large deals in Q1 are margin-dilutive. If mix skews further to large deals, reported EBITDA margin compresses. Mgmt prioritizes ROCE not margin, so acceptable but headwind to bottom-line growth.

Mgmt explicitly said 'playing quarter by quarter' due to price/demand uncertainty. Post-Q2, visibility almost zero. Seasonality pattern (Q3 festive, Q4 end-year) may not hold. Price stabilization / demand rebound timing unknown.