Revenue and Profit Growth Trajectory
Over the past seven years, Redington’s net sales have shown a robust upward trend, increasing from ₹46,536 crores in March 2019 to ₹99,334 crores by March 2025. This near doubling of revenue underscores the company’s expanding market presence and operational scale. The total operating income mirrors this growth, reflecting a steady increase year-on-year without any contribution from other operating income.
Profitability has also improved significantly. Operating profit before other income rose from ₹899 crores in March 2019 to over ₹2,028 crores in March 2025, despite some fluctuations. Including other income, operating profit reached ₹2,257 crores in the latest fiscal year. The profit before tax surged from ₹623 crores in 2019 to ₹2,335 crores in 2025, while consolidated net profit more than tripled from ₹508 crores to ₹1,605 crores over the same period.
Margins have remained relatively stable, with the operating profit margin (excluding other income) hovering around 2% to 2.9% in recent years. The PAT margin improved from 1.04% in 2019 to 1.83% in 2025, reflecting enhanced operational efficiency and cost management.
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Balance Sheet Strength and Asset Management
Redington’s shareholder funds have expanded steadily, rising from ₹4,309 crores in 2020 to ₹8,721 crores in 2025. This growth is supported by increasing reserves, which climbed from ₹3,828 crores in 2019 to ₹8,565 crores in 2025, indicating retained earnings accumulation and financial prudence.
The company’s total liabilities have grown in line with its expanding operations, reaching ₹27,506 crores in 2025 from ₹14,531 crores in 2021. Notably, total debt levels have fluctuated, peaking at over ₹3,100 crores in 2023 before moderating to ₹2,619 crores in 2025, reflecting active debt management.
On the asset side, total assets have nearly doubled from ₹14,531 crores in 2021 to ₹27,506 crores in 2025. Current assets, including inventories and sundry debtors, have increased substantially, supporting the company’s working capital needs. Inventories rose from ₹2,902 crores in 2021 to ₹6,287 crores in 2025, while sundry debtors expanded from ₹6,801 crores to ₹17,330 crores over the same period.
Book value per share has shown consistent improvement, climbing from ₹55.38 in 2020 to ₹111.56 in 2025, signalling enhanced shareholder value.
Cash Flow Dynamics
Cash flow from operating activities has experienced volatility, with a notable dip in 2023 where it turned negative at ₹-3,233 crores, before recovering to ₹292 crores in 2025. This fluctuation largely stems from changes in working capital, which saw significant outflows in 2023 but stabilised thereafter. Investing activities have generally contributed positive cash inflows in recent years, while financing activities have mostly been cash outflows, reflecting debt repayments and capital management.
Despite these fluctuations, the company maintained a healthy cash and bank balance of ₹1,213 crores at the end of March 2025, down from ₹3,271 crores in 2022 but sufficient to support ongoing operations.
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Summary and Investor Takeaways
Redington’s historical performance reflects a company on a growth trajectory, with revenues nearly doubling over six years and profitability improving in tandem. The steady rise in net profit and earnings per share, coupled with expanding reserves and shareholder funds, indicates sound financial health and operational resilience.
While cash flow volatility and working capital fluctuations warrant attention, the company’s ability to maintain positive operating cash flow in recent years and manage its debt levels effectively is reassuring. Margins have remained stable despite the scale-up, suggesting efficient cost control.
Overall, Redington’s financial track record presents a compelling case for investors seeking exposure to a growing mid-cap player with a solid balance sheet and consistent earnings growth.
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