Chennai: Redington is witnessing rapid growth driven by AI exposure across its product categories, from data centres to PCs for commercial customers. Alongside its core business of reselling IT hardware, the company’s revenue from GPU resales to Indian neocloud customers is seeing notable traction. Its technology solutions group, which handles networking, servers, storage, and power, registered 91% growth in the second quarter of the 2027 fiscal year.VS Hariharan, managing director and group CEO, said data centre hardware contributed nearly Rs 3,000 crore of the second quarter’s Rs 3,800 crore in deals. “There is a real transition happening from CPUs to GPUs, especially with enterprises adopting GPUs, which is contributing to the growth, along with a price increase in CPUs and servers. We maintain a strong backlog to be recognised over the next two-three quarters, with a substantial funnel driven primarily by Indian neo cloud operators. While they see some deals in Africa and the UAE, they are smaller in scale compared to India,” he said.Its mobility solutions group, which includes smartphone sales and endpoint solutions, commercial PCs, grew 40% and 38%, respectively. Its software solutions grew 39%. Redington recently reported consolidated revenue of Rs 43,002 crore in Q2 FY27, 48% growth on a yearly basis, while profit after tax (PAT), excluding exceptional items, increased 50% to Rs 581 crore.While cost inflation has dampened consumer PC sales, with a 20%–25% volume drop, commercial PCs saw expansion of about 10% YoY growth in India, predominantly driven by migration to AI-enabled and AI native PCs, balancing the impact. The smartphones too witnessed growth, driven by new products and form factors such as Apple’s foldable, but price hikes could impact volume elasticity.Hariharan explained the company’s goal of transforming from a traditional distributor into an orchestrator and earning a larger role in the customers’ technology agenda. “Customers no longer just buy hardware and implementation services but purchase bundles combining hardware, SaaS products, agentic AI, cloud migration and services. This allows us to collaborate with OEMs, software players, and independent software vendors (ISVs). Various initiatives such as an agentic marketplace, cloud automation tools, and a use-case solutioning platform are being developed, and it will be monetised through resale fees, listing, recommendation and solutioning fees and higher-margin services. He expects the potential to build a few hundred million business over five years.The company’s emerging bets include solar rooftop and refurbished devices business, as the average selling price of IT hardware rises. It is also diversifying into newer segments by piloting smart glasses in the Middle East and Africa as a retail adjacency to smartphones, which is expected to surge over the next two-three years, while evaluating distribution for household and office robots.
