• Financial performance: Redington posted 25% revenue growth and 16% profit growth year-on-year for the quarter, despite booking an exceptional impairment loss of 152 crore in its Turkey operations.
• Middle East impact: Geopolitical conflict and supply chain issues caused a roughly 25% budget shortfall (around $100 million) in the Middle East during March, though 50% growth in India and 51% growth in GCC countries helped cushion the blow.
• EBITDA margin guidance: The company targets core EBITDA margins of 2% to 2.2% in FY27, excluding large data center contracts that yield lower gross margins but provide incremental profit.
• Turkey business restructuring: Following high inflation and interest rates, operations in Turkey have been scaled down to half their prior size, shifting entirely to US dollar-denominated business with an increased focus on cloud and software.