Are Redington Ltd latest results good or bad?

Redington Ltd's latest financial results for Q3 FY26 reflect a complex operational landscape. The company reported consolidated net profit of ₹435.80 crore, showing a quarter-on-quarter growth of 12.37% and an annual increase of 8.87%. This indicates a solid performance in profitability, although the growth rate has moderated compared to the previous quarter. Net sales reached ₹30,921.73 crore, marking a quarter-on-quarter growth of 6.35% and a year-on-year increase of 15.74%. This performance represents the highest quarterly revenue in the company’s history, driven by strong demand in the IT products and mobility segments. However, the sequential growth rate has slowed from the previous quarter's 12.04%, suggesting a potential deceleration in momentum. Operating margins, excluding other income, stood at 2.02%, which reflects a slight decline of 1 basis point from the previous quarter and a contraction of 24 basis points year-on-year. This compression in margins highlights the ongoing challenges in maintaining profitability amid competitive pressures in the distribution sector. The company's return on equity (ROE) averaged 18.34%, indicating effective capital deployment despite the inherent low-margin nature of the distribution business. Additionally, Redington's nine-month FY26 performance shows net sales of ₹85,949.33 crore, up 18.10% year-on-year, and consolidated profit of ₹1,098.90 crore, growing 19.65%. This consistent execution demonstrates the company's ability to leverage operational scale effectively. Overall, Redington Ltd's results illustrate a strong operational foundation with notable revenue growth and profitability, albeit with some margin pressures. The company has experienced an adjustment in its evaluation, reflecting its ongoing performance within a competitive landscape.